The 2025 Guide to Buy Now, Pay Later (BNPL): What It Is, Who It's For, and How to Use It in your business

Buy Now, Pay Later (BNPL) is more than just a trending payment option—it’s a way to meet your customers where they are. Whether you’re selling a product, a service, or something in between, offering flexible payment plans can help your clients say yes with more ease. BNPL lets your audience split their payments into smaller, interest-free chunks—making higher-ticket items feel more accessible without discounting your value.

And the best part? You still get paid in full, upfront. In this blog, we’ll break down what BNPL actually is, how it works, and how business owners across different industries—from coaches to creatives—are using it to grow.

BNPL Usage: A Statistical Overview

The Buy Now Pay Later model has witnessed exponential growth in recent years:

• Global Adoption: In 2022, approximately 360 million people utilized BNPL services. This number is projected to surge to 900 million by 2027, marking a 157% 

• U.S. Market Expansion: The U.S. BNPL market is expected to grow by 12.2% annually, reaching $122.26 billion in 2025.

• Demographic Shifts:

  • Gen Z: 64% have used BNPL services, with 71% managing multiple BNPL loans simultaneously.

  • Millennials: Over 25% plan to use BNPL for significant purchases like flights within the next six months.GWI

• Changing Spending Habits: BNPL usage for essential items is on the rise. In 2025, 25% of BNPL users reported using the service for grocery purchases, up from 14% the previous year.

Here’s how real businesses are using BNPL today:

For E-Commerce Shop Owners

If you sell physical or digital products online, offering BNPL at checkout is one of the easiest ways to increase conversions. Instead of walking away when the full price feels like too much, customers are more likely to complete their order when they can split the payment into smaller, no-interest chunks. This reduces cart abandonment and increases your average order value.

Tip: Add a line near your checkout button that says “Pay in 4 interest-free payments with Afterpay or Klarna.”

How are businesses using Buy Now Pay Later options? 

For Coaches & Consultants

Whether you’re offering 1:1 support or a group program, not everyone can (or wants to) pay a large sum upfront. With BNPL, you can offer more ease and accessibility—without taking on the risk yourself. The client pays in installments, and you still receive the full amount upfront through your BNPL provider.

This is ideal for launching higher-ticket programs or onboarding more clients without discounting your services.

For Agencies & Creative Freelancers

If you design brands, run ad campaigns, or build websites, you’re often offering services that are an investment. Offering BNPL makes it easier for your clients to commit—especially solo business owners who may be cash-flow conscious.

Instead of chasing partial payments or managing custom plans yourself, let a BNPL service handle it—and get paid in full while your client enjoys more manageable chunks.

BNPL isn't just about sales—it's about meeting your audience where they are. It’s a win-win: you get paid faster, and your clients feel supported, not stretched.

How BNPL Works: A Closer Look

BNPL services allow consumers to split their purchases into smaller, interest-free installments over a set period. Here's how it functions:

• For Consumers:

  • No interest or fees if payments are made on time.

  • Instant access to products or services.

  • Predictable budgeting with fixed payment schedules.

• For Businesses:

  • Immediate full payment from the BNPL provider.

  • Higher conversion rates and average order values.

  • Access to a broader customer base seeking flexible payment options.

BNPL providers earn revenue by charging merchants a transaction fee, typically ranging from 2% to 8%, which is higher than standard credit card fees.

BNPL Providers: Klarna vs. Afterpay

When considering BNPL providers, Klarna and Afterpay are two prominent options. Here's a comparative overview:

Klarna:

• User Base: Over 150 million users across 45 countries.

• Features:

  • Offers various payment options, including pay in 4, pay later, and financing.

  • Integrates with major e-commerce platforms.

  • Provides a user-friendly app with personalized shopping experiences.Wikipedia

Afterpay:

• User Base: 24 million users, primarily in Australia, New Zealand, the U.S., and the U.K.

• Features:

  • Focuses on the pay-in-4 model with bi-weekly payments.

  • Strong presence in fashion and beauty retail sectors.

  • Owned by Block, Inc., enhancing its integration with various payment systems.

Choosing the Right Provider:

• Business Model Alignment: If your business caters to a global audience with diverse payment preferences, Klarna's varied options might be more suitable. For businesses targeting younger demographics in fashion and lifestyle sectors, Afterpay's straightforward model could be advantageous.

BNPL at  our own Marketing Agency - Megan Moore Marketing

At Megan Moore Marketing, we recognize the importance of financial flexibility for our clients. That's why we offer BNPL options for our services, allowing you to:

• Break down payments into manageable installments.

• Align expenses with your cash flow.

• Invest in growth without immediate financial strain.

Whether you're looking to revamp your brand, launch a new campaign, or develop a comprehensive marketing strategy, our BNPL options make it easier to achieve your goals on your terms.