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Buy Now, Pay Later (BNPL) with Lopay

Offer Klarna and Affirm on Payment Links

Lucinda OR avatar
Written by Lucinda OR
Updated over 2 weeks ago

With Lopay’s new Buy Now, Pay Later option, your customers can pay in instalments using Klarna or Affirm — while you get paid upfront.

Please note: This feature is currently not switched on by default — it’s only available on request after a quick review to confirm eligibility. To get started, just email us at [email protected] and our team will be happy to help.

Why offer Buy Now, Pay Later (BNPL)?

  • Boost sales and completion rates – Flexible payments can reduce drop-offs and improve conversions.

  • Get paid upfront – Customers pay over time, but you receive the full amount upfront (minus fees). Klarna or Affirm handle customer repayments.

  • Setup is quick: just enable Klarna and/or Affirm in your Lopay app and send a Payment Link to your customer.

Eligibility

Buy Now, Pay Later (BNPL) is only available to merchants whose have been deemed eligible for Klarna or Affirm by Stripe, our payment processor. And BNPL is only available when customers pay via payment links.

Fees

Fees apply to each successful payment:

  • Klarna: 5.99% + $0.30

  • Affirm: 6% + $0.30

The above fees are fully inclusive so there are no additional fees.

How to enable BNPL in Lopay

  1. Open the Lopay app and tap the ☰ (three lines) icon in the top-right corner.

  2. Go to Account Settings > Payment options.

  3. Toggle on Klarna and/or Affirm.

  4. Review and accept the Terms, then select Continue.

BNPL is available on all Lopay plans and once enabled, will show as a payment option whenever you send a Payment Link to customers.

How your customers pay with BNPL

Klarna

  1. Customers are redirected to Klarna’s site to choose from instalment options based on their location, order amount, and other factors.

  2. Once confirmed, Klarna redirects them back to complete the order.

  3. You get the full order amount (minus fees) in your Lopay account immediately.

  4. Klarna collects payments directly from the customer and assumes any repayment risk.

Affirm

  1. Customers are redirected to Affirm’s site to review and agree to a repayment plan.

  2. After authorisation, they return to your checkout to complete payment.

  3. You receive the full amount (minus fees) in your Lopay account immediately.

  4. Affirm collects repayments directly from the customer over time.

Refunds

Klarna

  • You can issue refunds on Klarna charges for up to 180 days after the payment is completed.

  • When you refund a charge, Klarna cancels any remaining instalments and returns the amount already paid to the customer.

  • Refunds usually take 5–7 business days but may take longer depending on the customer’s bank and purchase type.

  • Both full and partial refunds are supported. You can issue multiple partial refunds up to the value of the original charge. For partial refunds, Klarna automatically updates the customer’s repayment plan to reflect the new total.

Affirm

  • Refunds with Affirm follow a similar process. You can issue full or partial refunds up to the original payment amount.

  • Affirm adjusts the customer’s repayment schedule accordingly, cancelling or reducing future instalments.

  • Refunds typically take a few business days to appear in the customer’s account, depending on their financial institution.

Additional Requirements

Klarna

To use Klarna, your business must also meet certain additional requirements set by Klarna and Stripe:

  • Customer location – Klarna is only available for customers based in the USA making purchases shipped to the USA.

  • Prohibited categories – In addition to the industry and business types restricted under the Stripe Services Agreement, Klarna does not support:

    • Charities

    • Political organisations, parties, or initiatives

    • B2B transactions

  • Risk management – Klarna may suspend or terminate your access if you fall into a prohibited category or if your business has high dispute rates that are not promptly resolved.

  • Refunds – Klarna supports both full and partial refunds, but all refunds must follow Klarna’s rules (see the Refunds section above).

Affirm

To use Affirm, your business must also meet certain additional requirements set by Affirm and Stripe:

  • Customer location – Affirm is only available for customers based in the USA or Canada making purchases shipped to the USA or Canada.

  • Prohibited categories – Affirm does not support:

    • Weapons

    • Age-restricted goods

    • Certain financial services

    • Other industries outlined in Affirm’s prohibited business policy

  • Merchant setup – You must:

    • Have a US or Canadian entity

    • Operate a website in English

    • List prices in USD or CAD

    • Have a US or Canadian bank account

  • Regulatory compliance – Affirm requires compliance with:

    • Truth in Lending Act (TILA)

    • Equal Credit Opportunity Act (ECOA)

    • CAN-SPAM Act

  • Technical requirements – You must:

    • Integrate Affirm’s API

    • Display Affirm branding on your website and checkout pages

These requirements are in addition to Lopay and Stripe’s standard terms.

For further guidance, please email [email protected]

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