Merchants today must consider offering multiple Buy Now Pay Later (BNPL) options at checkout to keep pace with consumer demand. Rapid shifts in popularity, cost and convenience mean that selecting the right BNPL partners and managing the technical, reconciliation and compliance challenges behind the scenes has become a widespread issue.
Buy Now Pay Later at online checkout has grown substantially in recent years with 10 million customers now having used a BNPL product to purchase goods online in 2020 (Capital Economics, 2021).Research shows that 2 in 5 UK adults (around 22.6 million people) have used BNPL services at some point.
This reflects a rapid adoption across age groups and suggests that BNPL is now a mainstream requirement in payments strategy. BNPL was initially popular among Gen Z and millennials.
Why BNPL is Now a Must for Merchants
Around 9.5 million UK consumers avoid buying from retailers who do not offer BNPL.
That behaviour emphasises the risk merchants face when they are absent from this payment segment. Incorporating BNPL options into checkout supports customer engagement, repeat purchases and stronger conversion rates.
Growth forecasts for BNPL in the UK remain strong. The market is expected to grow from around US$38.76 billion in 2024 to approximately US$61.39 billion by 2029.
Volume of usage and gross merchandise value are rising steadily. Growth is being driven by consumer demand, regulatory changes and competition among BNPL providers.
“9.5 million consumers in the UK actively avoid buying from retailers that don’t offer BNPL”
 Challenges for Merchants Offering Buy Now Pay Later
Offering BNPL can bring increased sales but also raises complexity. Key issues include:
Integration overhead: Each BNPL vendor may require its own technical integration which imposes software development, testing and maintenance costs.
Reconciliation and vendor fees: Hidden merchant fees, varying transaction fees and differing settlement schedules can complicate accounting.
Compliance and regulation: Regulatory requirements are increasing. The Financial Conduct Authority (FCA) in the UK is in the process of introducing rules that will require BNPL providers to carry out affordability checks for even small loans, and ensure consumer protection.
These challenges mean that merchants need a payments strategy that simplifies the BNPL landscape while maintaining consumer trust.
What is Payments Orchestration
Payments orchestration refers to a system that consolidates multiple payment methods, including multiple BNPL providers, into a unified platform. An orchestration layer helps to:
Simplify integration by managing many BNPL vendors via one API
Reduce maintenance overhead by centralising transaction monitoring, reporting and vendor management
Provide flexibility to add or remove BNPL options as market conditions change
Such an approach allows merchants to focus on core business rather than the complexity of managing multiple payment and credit partner relationships.
How Paydock Supports Buy Now Pay Later for Merchants
Paydock delivers a no‑code payments orchestration solution that assists merchants to connect with multiple BNPL products such as PayPal Pay in 4, Afterpay and zipMoney under one infrastructure. Key benefits include:
Low Cost of Adoption
A single integration point allows merchants to avoid building individual connections to each BNPL vendor. That reduces developer workload and speeds time to market for new BNPL options.
Lower Cost of Maintenance
A unified dashboard provides merchants with visibility and control over all BNPL related transactions. Merchants can audit events, track payment history, consolidate reconciliation and simplify reporting via the same set of tools.
Flexibility to React to Market Trends
The BNPL space evolves rapidly. Payment methods shift, customer expectations change and regulatory requirements adjust. Using orchestration, merchants retain the ability to adopt new BNPL services or modify existing ones without disrupting customer experience.
Regulation and Safeguards
Regulatory bodies in the UK are moving to ensure BNPL is used safely. The FCA has proposed that even loans under £50 should require affordability checks.
New rules will grant consumers greater rights and protections when using BNPL options.
For merchants this means working with BNPL providers who operate compliantly, ensuring clear terms, transparent fees and good customer support.
BNPL Usage Trends & Consumer Behaviour
Recent data reveals:
- 42% of UK adults have used BNPL at some stage.Â
- 13% of UK adults used BNPL for the first time in 2024.Â
- Over 50% of those who used BNPL in a recent period had paid a late fee.Â
Forecasts estimate strong growth in BNPL adoption in coming years, including gross merchandise value and number of providers.
These trends emphasise that customers expect BNPL at checkout. Merchants who fail to support BNPL may lose out on revenue, or the ability to meet evolving consumer expectations.
Final Thoughts
Buy Now Pay Later is now an essential payment method in many markets, especially in the UK. Merchants who embrace BNPL through an orchestration strategy gain access to expanded customer reach, improved conversion, greater flexibility and easier compliance. Paydock provides infrastructure suited to these needs: unified gateway connections, vendor‑agnostic orchestration, clear reporting and the ability to adjust payment strategies without technical burden.
Merchants interested in offering multiple payment service providers via one unified orchestration layer should contact us at [email protected] to explore opportunities. Buy Now Pay Later may control much of the payment frenzy, but with the right tools merchants can steer it toward greater growth and sustainable customer satisfaction.
FAQ
1. What is Buy Now Pay Later and how does it work?
Buy Now Pay Later (BNPL) is a payment method that allows customers to purchase items immediately and pay for them in instalments over time. Typically, payments are split into interest-free segments, often monthly or bi-weekly, depending on the provider’s terms.
2. Why should merchants offer Buy Now Pay Later at checkout?
Offering BNPL options at checkout can increase conversion rates, reduce cart abandonment, and attract new customers. Many UK consumers now expect flexible payment methods and may avoid shopping with merchants who do not provide BNPL choices.
3. How does Paydock support Buy Now Pay Later integration?
Paydock offers a no-code payments orchestration platform that enables merchants to connect with multiple BNPL providers through a single integration. This reduces development costs, simplifies maintenance and ensures flexibility as the market evolves.
