- KredX Editorial Team
- 20 Oct 21
- Buy Now Pay Later

Cash flow maintenance and customer retention are key to the success of every business, irrespective of size. While established businesses easily get credit facilities to continue operation, most small businesses struggle to get the same due to eligibility complications or other factors. Thus without enough revenue, most small businesses cannot manage inventory efficiently, which disrupts sales, eventually leading to loss of customers.
In such cases, if businesses opt for the Buy Now Pay Later facility and integrate the service into their business, they can resolve these issues and maintain a strong customer base.
Wondering how? Let’s see!
Buy Now Pay Later in a Nutshell
‘Buy Now Pay Later enables a customer to purchase a product and pay the amount later within the stipulated time. The products offered are usually small-ticket credit options that boost online and offline businesses. Here, buyers repay the purchase amount in an instalment payment. The repayment window can open for several months or days depending on the BNPL service provider.
The service or credit facility may seem beneficial only for buyers. However, businesses that have integrated the BNPL option benefit from it significantly. Read along.
Benefits of Buy Now Pay Later for Small Businesses
Having BNPL options available in a store (both online and offline) can help to convert visitors into customers. The other benefits include:- Attract New Customers
- Increase Sale
- Reduce Cart Abandonment
- Maintain Cash Flow
- Manage Inventory
- Boost Customer Lifetime Value
Working Method of BNPL for Small Businesses
In India, the formal credit facility is fragmented, hard to access, and stuffed with paperwork and complex processes. Contrarily, BNPL presents itself as a hassle-free and ready-to-use product. Whereas buyers get their products instantly, businesses that add BNPL services get the money instantly against the products sold. Then, the BNPL service provider collects the money from the merchant with whom a buyer shops. Here is how Buy Now Pay Later works for small businesses:- Customers buy a product through a participating merchant or retailer.
- At the payment gateway, they opt for BNPL and agree to the terms and conditions of the BNPL service provider.
- Then the order is placed, and buyers choose to pay the entire amount at a later date with the stipulated date. Remember, the merchant or retailer gets the amount instantly or on the very next day.
- Customers can choose to pay the entire amount into low to zero interest amounts.