Buy Now Pay Later (BNPL)

What is BNPL?

Buy Now Pay Later (BNPL) has emerged as one of the most popular payment methods worldwide recently. One of the main reasons is that it allows customers to buy goods immediately and pay for them later, over time, without paying the full amount upfront. It is used by a wide variety of businesses, especially e-commerce retailers, to increase conversions, boost average order value, and reach new customers.

The most commonly used Buy Now Pay Later service is 'Installments,' where customers pay the balance in periodic (e.g., monthly) installments. Some BNPL providers may require a portion of the order to be paid upfront through other payment methods (e.g., card payments).

As the merchant, you receive the full payment of the order upfront and don't have to manage the financing. The BNPL providers take on the task of underwriting customers, managing the installments, and collecting payments, allowing you to focus on growing your business.

How does BNPL work?

Buy now, pay later programs aren't all the same. Each company has its own terms and conditions, but generally, point-of-sale installment loans operate along the following lines:

• You make a purchase at a participating merchant and choose the buy now, pay later option at checkout.
• If approved (you're informed within seconds), you make a small down payment, typically around 25% of the overall purchase amount.
• The remaining balance is paid off in a series of interest-free installments.
  Payments can be made via check, bank transfer, or deducted from your debit card.
• Some BNPL companies provide credit to customers through their application. Customers can use this credit to pay for their goods, and the installment arrangement is managed between the customer and the BNPL company.
• Payment of dues is scheduled and made over the desired interval of time using credit cards or through aggregators via POS.

BNPL providers with Geidea

Valu - Egypt

ValU

ValU provides Egyptian customers with a way to pay for purchases through a specific monthly installment plan over time. As a merchant, you have the advantage of receiving the full payment upfront as soon as the transaction is processed.

Souhoola - Egypt

Souhoola

Souhoola is another Egyptian BNPL provider that allows customers to pay for purchases through a specific monthly installment plan over time. As a merchant, you have the advantage of receiving the full payment upfront as soon as the transaction is processed.

Shahry - Egypt

Shahry is a digital buy-now-pay-later credit card and wallet. The app offers the ability to purchase consumer goods and services in installments over a period of up to 36 months, with no down payment required, and starting at 0% interest / APR. Geidea provides integration with Shahry for our merchants, enabling them to offer an additional BNPL option to their customers.