When Is Buy Now, Pay Later Worth Adding?

[SophieR]

BNPL can lift conversion on higher-priced products, but it also adds fees and another checkout choice. At what average order value or customer demand level does it become worth testing?

 

[ElenaMoretti]

I would test it when the product price is high enough that customers mention affordability or abandon after viewing the total. Compare conversion and contribution margin, not just revenue, because the extra fee can erase the gain on lower-value orders.

 

[ElizabethParker]

I would test it when the product price is high enough that customers mention affordability or abandon after viewing the total. Compare conversion and contribution margin, not just revenue, because the extra fee can erase the gain on lower-value orders.

I’d probably test it once enough customers are asking for payment flexibility. If people are already asking whether they can pay in installments, that’s a pretty good sign that the option could be useful.