Klarna, Afterpay, Shop Pay — buy now pay later is everywhere. Here's whether it makes sense for your small business and how to set it up.
Buy now pay later (BNPL) lets customers split their purchase into smaller installments — usually 4 payments over 6 weeks — at no extra cost to them. You get paid in full upfront. The BNPL provider takes a small fee (typically 2–6%).
Who it helps most
If your services cost $200 or more, BNPL can meaningfully increase your conversion rate. Customers who might hesitate at a $400 invoice don't hesitate nearly as much at "4 payments of $100." Same price, very different psychology.
The Stripe + Klarna option
If you already use Stripe for payments, adding Klarna is a checkbox in your Stripe dashboard — no extra code, no separate account. Customers see it as an option at checkout automatically.
The trade-off
You pay a slightly higher processing fee on BNPL transactions. For most small businesses the increased conversion rate more than covers it — but it depends on your margins. If you're selling $50 services, BNPL probably isn't worth it. If you're selling $500+ packages, it very likely is.
Bottom line
If your customers ever comment that your prices are high or ask about payment plans, turn on Klarna. It's free to enable and you only pay when someone uses it.