Buy now, pay later (BNPL) is a modern payment service and a major advance in France’s payment landscape. BNPL allows payments to be made in installments, a response to French customer demand for convenient, flexible ways to pay for purchases. For businesses in France, BNPL has become a key strategy for filling shopping carts, driving conversion, and retaining customers who expect more.

In this article, we’ll take a closer look at what BNPL is, how it works, how it benefits businesses, and how to incorporate it into current operations.

Key takeaways

• Buy now, pay later (BNPL) is a payment service that lets customers defer payment or pay in installments via a third-party provider.
  
• BNPL involves three parties: the customer, the seller, and a financier. The financier advances the amount of the purchase to the seller and assumes the risk of nonpayment in exchange for a commission.
  
• In France, there are three main BNPL models: payment in three or four installments at no cost, payment deferred for 15–30 days, and payment spread out over the long term (i.e., several months). Each model is best suited to a certain type of customer and purchase.
  
• For businesses, BNPL drives conversion and average cart size, helps retain customers, and protects cash flow through an immediate advance. For customers, BNPL helps keep budgets flexible and makes for a frictionless checkout process with no credit application.
  
• Under Europe’s revised Consumer Credit Directive (CDD2), which France is subject to, and which takes effect November 20, 2026, installment plans are considered a type of consumer credit.
  

What is “Buy Now, Pay Later?”

Buy now, pay later (BNPL) is a payment method that lets customers receive their goods or services right away but defer payment or pay in installments.

The service is managed by third-party providers such as Klarna and Alma. It offers customers significant payment flexibility, letting them pay at a pace that works for them without hurting the business’s cash flow, since the business is paid in full at the time of the transaction.

This payment method is quickly gaining popularity in France, both online and in stores. In 2023, 42% of French customers used BNPL.

How does BNPL work?

BNPL involves a three-way agreement between the customer, the business, and a financier (i.e., a financial technology [fintech] firm or bank). The financier advances the amount of the purchase to the business when the transaction goes through, in exchange for a commission. The financier is then responsible for collecting payment from the customer and assumes the risk of default.

BNPL can be offered in-store—typically via a compatible payment terminal or a scannable quick response (QR) code—but online sales dominate the market. This is what the process tends to look like when a customer makes a purchase online:

• The business offers BNPL: During checkout, the business offers BNPL as a payment method.
  
• The customer selects BNPL: The customer selects the BNPL option to pay for their purchase.
  
• The customer is taken to a third-party provider's site: The customer is redirected to the provider's website to enter their details and pick a payment plan; for instance, Klarna lets customers choose between deferred payment or installment payments.
  
• The BNPL provider assesses the customer’s credit: The provider uses a scoring algorithm that combines identification (ID) verification, transaction history, and information gained from open banking.
  
• The customer confirms the purchase: The customer is directed back to the business’s website to finalize the transaction.
  
• The business receives full payment: Once the purchase is complete, the business receives the payment in full and fulfills the order. The BNPL provider finances the purchase and collects payment.
  
• The customer is debited on the agreed due dates: Payments are debited automatically using the customer’s card according to the agreed-upon schedule.
  

If there is a problem with payment, the provider initiates a collections process that can result in anything from an amicable resolution to a formal dispute.

Stripe users in France can quickly enable the BNPL option (e.g., Klarna, Alma) on their Dashboard. Stripe Payments offers access to more than 100 payment methods, enabling businesses to accept payments in more than 195 countries, all without writing a single line of code.

What are the different types of BNPL?

There are three main BNPL models: payment in three or four installments at no cost, deferred payment, and long-term payment plans. Each is best suited to different circumstances. The model a business offers depends on the industry, the average cart size, and the customer.

Here’s a breakdown of the main BNPL plans available in France:

• Payment in three or four installments (also called “Pay in 3,” “Pay in 4”)
  This is the most popular BNPL model with customers (51% of online shoppers choose this option). Customers pay 25% to 33% of the total and the remainder in two or three monthly interest-free installments. The cost of installment payments is borne entirely by the business as a commission. This is the primary format offered by providers such as Alma and Klarna for most ecommerce in France.
  
• Deferred payment (“Pay Later”)
  With this model, customers pay the total all at once, typically 15–30 days after purchase. Deferred payment is ideal for “Buy now, pay next month” kinds of promotions and is often used for products that customers prefer to try out before committing to.
  
• Long-term payments (“Pay in [X number of months]”)
  High-value carts might offer options to finance over 6, 10, 12, 24, or even 36 months. This BNPL option might charge interest. It is similar to traditional consumer credit and has stricter credit requirements (e.g., ID verification, credit check, collateral requirements).
  

What are the advantages of BNPL?

BNPL benefits businesses and customers. For businesses, it drives conversion, average cart size, and customer retention while offloading the risk of nonpayment. For customers, it offers budgetary flexibility, transparency, and easier access to big-ticket items—all with a frictionless checkout experience.

Benefits to businesses

Businesses that offer BNPL:

• Receive the full amount of the purchase right away
  
• Offload responsibility for financing and nonpayment
  
• Respond to customer demand for flexible payment options
  
• Attract a broader array of customers by letting them make purchases they couldn’t make otherwise
  
• Create an opportunity to drive sales and boost conversion rates
  
• Build customer loyalty by offering an easy purchase experience
  
• Protect cash flow with an immediate advance from the BNPL provider, safeguarding their accounts receivable (AR)
  

Benefits to customers

For customers, BNPL offers:

• A flexible, secure, convenient payment method
  
• Immediate budgetary flexibility by spreading out a major expense over several months with no credit application; 89% of BNPL users see it as a way to manage their budget and spread out expenses
  
• A way to buy big-ticket items and pay for them later or over time without paying interest
  
• Fast checkout, since the credit check takes only a few seconds at the time of payment, with no application or appointment necessary
  

What is the future of buy now, pay later in France?

The BNPL market in France is on track to hit $15.13 billion in 2026, and it is projected to grow continuously, reaching $27.42 billion by 2031.

The expansion of BNPL to business-to-business (B2B) transactions is another important advance in the market. Companies such as Pledg, Hokodo, Mondu, and Hero now offer installment payments for transactions between businesses, with payments spread across 30 to 180 days, or three to six monthly payments. This allows businesses to meet customer demand for deferred payment while protecting cash flow by receiving payments right away.

In France, BNPL will also see major regulatory changes. Under European directive 2023/2225, deferred and installment payments are now considered a type of consumer credit. The goal is to strengthen borrower protections and reduce the risk of debt overload—in 2024, 17% of debt relief applications involved BNPL payments or microcredit. The EU directive applies to France via a September 3, 2025 French directive and will take effect on November 20, 2026.

Businesses that offer BNPL via a third-party lender—which is the vast majority of the market—need to conduct a proportionate credit check, display the total cost and payment timeline, and offer a two-week cooling-off period. The Bank Inclusion Observatory (Observatoire de l’inclusion bancaire, OIB) also recommends checking the national nonpayment registry (Fichier national des Incidents de remboursement des crédits aux particuliers, FICP) maintained by the Bank of France before granting credit.

It’s important to note that consumer credit rules do not apply to direct deferred payments offered by businesses to customers if all of the following apply:

• Payment is made in full within 50 days
  
• No interest is charged (limited fees are permitted for late payment only)
  
• There’s no intervention from outside providers offering credit or purchasing the debt
  

What BNPL solutions does Stripe offer in France?

Stripe offers multiple third-party integrations via its Stripe App Marketplace that enable BNPL payments.

Klarna, for instance, is a Stripe-compatible BNPL provider that offers various payment options in France:

• Immediate payment
  
• Deferred payment (customers pay in single installments within 30 days of purchase)
  
• Payment in three installments (three equal payments)
  

Alma is another BNPL provider available in France that integrates seamlessly with Stripe. It is a French provider that lets customers pay in two, three, or four installments with no interest and is not considered credit. However, this option is only available for purchases valued at €50–€2,000.

How Stripe Payments can help

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Learn more about how Stripe Payments can power your online and in-person payments, or get started today.