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E-Commerce & Product Sellingbeginner

Buy Now Pay Later (BNPL)

Definition

A payment option that lets customers split a purchase into interest-free instalments, popular services include Klarna, Clearpay, and Laybuy.

Why it matters

BNPL removes the upfront cost barrier, increasing average order value and conversion rates, especially for higher-priced products.

Example

A furniture brand adds Klarna as a payment option. Average order value increases by £120 because customers now afford pieces they previously hesitated over.

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