Buy Now, Pay Later options are officially live on Whop!
Creators, Your customers now have the flexibility to purchase your products without having to pay the full cost upfront, as our BNPL partners will allow customers to split their payments for any one-time purchase into monthly installments.
Let's take a look at what this means, and how BNPL works on Whop.
What is Buy Now, Pay Later (BNPL)?
BNPL is an alternative payment method that allows customers to purchase without having to commit to the full payment amount up front. In doing so, customers have the ability to immediately finance purchases and pay them back in fixed installments over time. For example, a customer making a $100 purchase could pay for the item in four interest-free installments of $25.
Buy now, pay later services—such as Affirm, Afterpay, and Klarna —are used by a wide variety of businesses to increase conversion, increase average order value, and reach new customers. Creators receive the full payment of the item up front, minus any fees (just like credit & debit card payments), and don't have to manage the financing. The buy now, pay later providers take on the task of underwriting customers, managing the installments, and collecting payments.
How Does Buy Now, Pay Later Work?
When someone uses a buy now, pay later service, they buy a product and delay payment, spreading it over a period of time.
Here is a streamlined version of the BNPL process:
- The customer selects a buy now, pay later (BNPL) option at checkout.
- They set up an account with the BNPL provider.
- The customer decides whether to accept the terms or decline.
- If accepted, the customer completes the checkout process.
- The creator receives the full payment upfront, minus processing fees.
What Does this Mean for Whop Creators?
The introduction of BNPL is huge for Whop creators - for many reasons! Firstly, as a creator, you get full payment for your purchase right away - although the customer pays in installments, you still receive your lump-sum payment on time.
Secondly, the average business sees a 27% increase in sales volume when offering BNPL options. BNPL removes the barrier of entry for customers who do not have a lump sum upfront to invest in your product.
Finally, this is all done for you. As a creator you do not have to manage any of the payment collections, underwriting, or anything else - BNPL will take care of this for you, ready for your customers to use.
Who Can Use BNPL?
If you want to set up BNPL for your business then ensure that your business is set up on Whop Payments. BNPL will not work for Stripe Standard, Stripe Express, PayPal, or crypto payments. Read this guide on how to set up Whop payments to get started.
Additionally, BNPL only works for one-time purchase offerings. It is not available for memberships with recurring renewals and payments.
Set Up BNPL for Your Whop Today!
Ready to set up BNPL for your customers? It's already done for you! Buy Now Pay Later is ready for your customers to use, as long as the aforementioned conditions are met. So if you don't have Whop Payments yet then set this up and you will be ready to go.
Share this post with your community and let them know all about Whop's new Buy Now, Pay Later checkout option.
Buy Now, Pay Later FAQs
How can I offer BNPL to my customers?
On Whop, buy now, pay later (BNPL) is automatically available to creators who use Whop Payments. If you don't already use Whop Payments, you'll need to set it up to give your customers the option to pay with BNPL.
What are the fees for BNPL?
The buy now, pay later (BNPL) fees are 6% + Whop's fees.
How do refunds work with buy now, pay later (BNPL)?
Refunds for BNPL transactions are handled just like debit or credit card payments. As a creator, you can issue refunds directly from your dashboard.
How are disputes handled for buy now, pay later (BNPL)?
Disputes for BNPL work just like those for debit or credit card payments. As a creator, you'll see and manage any disputes through your dashboard.
How do Dispute Protection Alerts work with buy now, pay later (BNPL)?
We don't receive alerts for BNPL disputes.
Here's why:
When a customer disputes a BNPL charge, their complaint typically goes directly to the BNPL provider, like Klarna, rather than their bank or card network. This means Whop isn't notified. To receive these alerts, we'd need to establish relationships with BNPL companies, which isn't currently part of our system.
If a customer disputes through their credit card company and it contains an identifier we're subscribed to, we'd receive the alert as usual—but that's rare, as BNPL disputes are usually handled directly by the BNPL provider. Moreover, companies like Klarna don't have formal programs for monitoring disputes.
