How to Offer BNPL For Business Without Increasing Risk

Key Takeaway:

• BNPL doesn’t have to mean increased risk. When merchants partner with established providers, the credit risk shifts to the BNPL company, not your business.
• BNPL for business works best when integrated through reliable online payment gateways that handle fraud detection and compliance automatically.
• Malaysian consumers increasingly expect flexible payment options. Businesses without BNPL risk losing sales to competitors who offer it.
• Proper buy now pay later integration should include real-time eligibility checks, clear terms display, and seamless checkout flow.
• Cash flow remains predictable because merchants receive full payment upfront from the BNPL provider—instalments are the provider’s concern.

Table of Contents

• How to Offer Buy Now Pay Later at Checkout Without Increasing Risk
  • Why BNPL Feels Risky (But Doesn’t Have to Be)
  • How BNPL Actually Works for Merchants
  • Setting Up BNPL Without Exposing Your Business
  • What to Look for in a BNPL Provider
  • Common Mistakes When Adding BNPL
• FAQs

Many customers nowadays can get the products they want without paying the full amount right away. While convenient for them, it’s normal for Malaysian business owners to feel some hesitation. What happens if they don’t pay? What about chargebacks? Fraud?

These concerns keep many owners from offering buy now, pay later options. But here’s the important truth: with the right setup, the risk isn’t yours to carry.

When you integrate BNPL through established providers, they’re the ones extending credit to your customers, not you. You get paid upfront (minus a small fee), and the provider handles collections. If a customer defaults? That issue goes to the provider.

With that, the real risk isn’t offering BNPL. It’s losing customers to competitors who already do, like Atome, GrabPay Later, and ShopBack PayLater, which have become popular. With how many Malaysian shoppers expect flexible payments these days, here’s what you need to know about offering this essential option.

How BNPL Actually Works for Merchants

Understanding the mechanics helps. Here’s the typical flow when a customer chooses BNPL at checkout.

1. Customer selects BNPL. At your checkout page, they choose an instalment option—say, three payments over six weeks.
2. Instant eligibility check. The BNPL provider runs a soft credit check in seconds. This happens behind the scenes; the customer just sees “approved” or “not eligible.”
3. You get paid immediately. Once approved, the BNPL provider pays you the full purchase amount (minus their fee, typically 3-6%). This hits your account within your normal settlement period.
4. Provider collects from customer. The customer pays the provider directly in instalments. Late payments, defaults, and collections don’t touch your business.

This is why BNPL for business has grown so quickly. Merchants get the sales uplift without the credit exposure. The model only works if providers are good at assessing risk—and the established ones are.

Setting Up BNPL Without Exposing Your Business

Not all buy now, pay later integration approaches are equal. Some may be less ideal for business needs. Here’s how to do it right.

Work Through Your Payment Gateway

The cleanest approach is to add BNPL via your existingonline payment gateways rather than using separate integrations. This keeps your checkout streamlined and reduces technical complexity.

When BNPL sits within your gateway (like Razorpay Curlec’s), you get unified reporting, single settlement flows, and consistent fraud protection across all payment methods. Trying to manage BNPL separately from your card and FPX payments can quickly become an operational headache.

Enable Real-Time Eligibility

Customers shouldn’t reach the final checkout step only to discover they’re not eligible for instalments. Good buy now pay later integration shows eligibility earlier in the journey, ideally on product pages or the cart.

This sets expectations correctly and prevents abandoned carts from frustrated shoppers who wanted to split payments but couldn’t.

Display Terms Clearly

Transparency protects everyone. Show the instalment breakdown before customers commit: how many payments, how much each, any fees involved. BNPL providers have strict requirements here, but having that clarity beyond compliance reduces disputes.

Set Minimum and Maximum Limits

Most providers set transaction limits, but you can often configure your own within their range. A RM50 minimum makes sense as splitting smaller purchases into instalments creates more friction than value. As for upper limits, set them based on your product range and risk tolerance.

What to Look for in a BNPL Provider

There are several BNPL for business players in Malaysia, many of which most people are familiar with. Choosing the right one matters for both customer experience and your operations.

Market Presence

Providers active in Malaysia understand local shopping behaviour. They’ve calibrated their credit models for Malaysian consumers and built brand recognition that increases adoption at checkout. For optimal results, you’ll want to opt for providers with strong local traction.

Integration Simplicity

Ask how the integration works. Does it plug into your existing online payment Malaysia setup, or require separate technical work? The best providers offer APIs and plugins compatible with major platforms like Shopify, WooCommerce, and even custom builds.

Fee Structure

BNPL fees typically run 3-6% per transaction, which is higher than card processing, but the sales uplift usually justifies it. Compare carefully, as some charge flat percentages while others have tiered rates based on volume. You don’t want hidden fees for chargebacks or refunds that can add up.

Settlement Speed

When do you actually see the money? Some providers settle daily, others weekly. For online payment Malaysia businesses managing tight cash flow, faster settlements matter, so confirm the terms before signing.

Common Mistakes When Adding BNPL

• Offering too many options. Don’t confuse customers by adding more BNPL providers than you need to at checkout. Pick one or two that cover your customer base and integrate them well.
• Burying the option. If customers can’t easily find the BNPL option, it won’t drive conversions. Feature it prominently on product pages, in the cart, and at checkout so they’ll see it.
• Ignoring mobile experience. Most Malaysian e-commerce happens on phones. Test your BNPL flow on mobile devices thoroughly and fix any clunky redirects or tiny buttons that kill conversions.
• Skipping the data. Track how BNPL affects your average order value, conversion rate, and return rate. Some businesses see 20-30% higher AOV with BNPL, while others see minimal impact. The numbers tell you whether to expand or scale back.
• Forgetting staff training. Ensure your customer service or sales teams understand how your BNPL works. Questions will come about eligibility, refunds, and payment schedules, so have confident answers on hand.

Add Flexibility Without Adding Risk

Implementing BNPL for business comes down to choosing the right provider, integrating cleanly through your payment infrastructure, and monitoring performance. When done properly, credit risk stays with the provider rather than your balance sheet.

The setup doesn’t have to be complicated either. When your online payment gateways already support BNPL options, activation becomes a configuration step rather than a development project. Razorpay Curlec’s payment gateway lets Malaysian businesses offer flexible checkout options while maintaining unified reporting and predictable settlements.

Ready to give your customers the payment flexibility they expect? Explore Razorpay Curlec’s online payment gateway and see how easily BNPL fits into your checkout.

References:

1. Buy Now Pay Later | Razorpay Curlec Docs. (data n/a).Razorpay Curlec.Retrieved on 26th January 2025 from https://curlec.com/docs/payments/payment-methods/pay-later/?preferred-country=MY

FAQ

Q1: Does offering BNPL increase fraud risk for merchants?

A: No. When using established BNPL providers, they absorb the fraud and credit risk. Merchants receive payment upfront, and the provider handles customer collections. Your exposure is limited to standard chargeback scenarios, which reputable providers help manage.

Q2: How much does BNPL integration cost?

A: BNPL providers typically charge 3-6% per transaction, higher than standard card processing. However, many merchants find the increased conversion rates and higher average order values offset this cost. There are usually no setup fees for integration.

Q3: When do merchants get paid with BNPL transactions?

A: Merchants receive the full purchase amount (minus the provider’s fee) within their normal settlement period—typically 1-3 business days. You don’t wait for customers to complete their instalments.

Q4: Can I offer BNPL for all products?

A: Most merchants can, though providers may restrict certain categories (gambling, adult content, etc.). You can also set your own minimum and maximum transaction limits within the provider’s parameters.

Q5: What happens if a customer returns a BNPL purchase?

A: Refund processes vary by provider, but generally you process the refund as normal. The provider adjusts or cancels the customer’s remaining instalments. Confirm the specific refund workflow with your chosen provider before going live.