“Buy now, pay later”is becoming common at large retailers like Target, Ikea and Macy’s. More and more small-business owners are allowing their customers the ability to pay in installments, too.
In fact, 55% of local businesses use buy now, pay later online and 5% offer it as an in-store payment option, according to a February survey from payments news site PYMNTS.com.
If you’re thinking about offering buy now, pay later at your small business, here’s what you need to know.
HOW BUY NOW, PAY LATER WORKS
Buy now, pay later involves three parties: the customer, the merchant and the buy now, pay later provider. When a customer makes a purchase, the provider pays the merchant in full, minus fees. Then the customer pays the provider back in installments.
Buy now,…