2
PAYMENT METHOD PROFILES: BNPL
Supply Chain Structure
CONSUMER
MERCHANT
BNPL SERVICE PROVIDER
ACQUIRER
Figure 2.15
Buy Now, Pay Later’s supply chain looks similar to a four-party card system with the BNPL service provider replacing the card network and issuer. The merchant receives the full payment when the transaction is complete; the BNPL provider bears the risk of managing the installments and receiving payments from the customer. BNPL payments are typically made using debit and credit cards or linking a bank account. 657 658 659 Merchant Cost Considerations Merchant fees for accepting BNPL can range from 2-8% of the sale costs depending on the provider. 660
Estimated Average Cost by BNPL Provider
0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10%
Klarna
Zip
Sezzle
Affirm
Graph 2.37 661
138
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