Customers in France enjoy flexible payment methods for their purchases – they want the ability to pay by debit or credit card, bank transfer, cheque, digital wallet, or cash, among other options. Buy Now, Pay Later (BNPL) is a modern and flexible payment method that caters to the need for diverse payment choices.

In this article, we’ll go over the basics of BNPL and explore how businesses in France can incorporate it into their current systems.

What’s in this article?

• What is Buy Now, Pay Later (BNPL)?
  
• How does BNPL work?
  
• What are the advantages of BNPL?
  
• Which BNPL solutions supported by Stripe are available in France?
  

What is Buy Now, Pay Later (BNPL)?

Buy Now, Pay Later (BNPL) is quickly becoming popular in France, both online and in stores. According to Alma, a BNPL provider, 42% of French customers had already adopted it by 2023.

BNPL is a paperless payment method that allows consumers to defer payment for their purchases or spread payments out over a period of time. This solution, which is handled by third-party providers such as Klarna or Alma, gives customers significant payment flexibility, allowing them to pay at a pace that works for them without affecting the business’s cash flow.

How does BNPL work?

When making a purchase – either online or in-store using a compatible payment terminal – the customer must select their preferred payment method. For customers to use BNPL, businesses must offer it in their list of payment methods.

When a customer selects the BNPL option, they are redirected to a third-party merchant’s website to enter their details and select a payment plan that works for them. For example, when a customer chooses to pay using Klarna, they can pick either deferred payment or instalment payments. They are then redirected back to the business to finalise the purchase.

Once the purchase is completed, the business receives the full payment and can begin processing the order. The service provider offering the BNPL service is responsible for managing the financing of the purchase and the repayment of the funds.

Stripe users in France can quickly enable a BNPL solution, such as Klarna or Alma, in their Dashboard. Stripe Payments offers access to more than 100 payment methods, enabling businesses to accept payments in more than 195 countries, all without needing to write any code.

What are the advantages of BNPL?

BNPL offers several benefits for businesses and their customers. Businesses that offer BNPL as an option:

• Receive the full amount of a purchase right away
  
• Are not responsible for the risk of non-payment or managing financing
  
• Can meet customers’ expectations for flexible payment options better
  
• Appeal to a broader customer base by allowing them to make purchases they otherwise wouldn’t have able to finance
  
• Increase sales and boost conversion rate
  
• Build customer loyalty by offering an optimised sales experience
  

In turn, customers enjoy a flexible and secure payment option that suits their preferences. They can make high-value purchases and pay for them later or in smaller instalments, without paying any interest.

Which BNPL solutions supported by Stripe are available in France?

Businesses in France that use Stripe Payments have a couple of options for BNPL solutions. Klarna and Alma are both compatible with Stripe, offering customers in France flexible payment methods.

Klarna offers a handful of different ways for buyers to pay for their purchases:

• Immediate payment
  
• Deferred payment (a single payment made within 30 days of the order date)
  
• Paying in three instalments (dividing the purchase into three equal payments, also called split payments)
  

Alma also seamlessly integrates with Stripe. This French BNPL provider gives customers the choice to pay in two, three, or four instalments, all with no interest. These payment plans are not considered credit. However, it’s important to note that the purchase amount must be between €50 and €2,000 for the customer to be eligible for this option.

Currently, BNPL is only available to individual Stripe customers. Corporate customers conducting business-to-business (B2B) transactions do not have access to this flexible payment method. Additionally, this payment solution is not currently available for subscriptions or recurring payments.