Buy Now, Pay Later apps and their features

There are countless “Buy Now, Pay Later” (BNPL) providers in the B2C market. Most offer apps for both Apple and Android devices, packed with features that let shoppers track, manage, delay, split, or otherwise flexibly handle their payments. Typically, though, consumers can only access these features after registering and creating an account in the BNPL app.

What’s considered standard for white label BNPL solutions is the exception for traditional BNPL apps: only a few providers offer payment options that can be used entirely without the app – and therefore without a customer account.

In this article, we’ll look at the payment methods, services, and tools offered by BNPL apps currently used in German e-commerce, along with their key advantages and disadvantages.

The most important payment types in BNPL apps

Before SEPA, Germany primarily relied on two cashless payment methods – invoice payment and installments. Today, both are widely supported in BNPL apps.

1. Invoice (“Pay by invoice”)

Many BNPL providers offer pay-by-invoice with payment windows typically ranging from 14 to 30 days. Purchase limits vary, however: PayPal, for example, allows invoice payments from €1 to €2,000, while Klarna sets the limit based on a credit check.

In most cases, shoppers need the provider’s app and a customer account to use invoice payment. Some exceptions exist:

Klarna: Allows 30-day invoice payments without creating an account or downloading the app. However, extending the payment deadline (for a fee) requires a Klarna account.
Riverty: The BNPL provider only requires a valid email address for invoicing. Payment is done via standard bank transfer. Customers can extend the deadline by 7 days for free or by 21 days for a fee – allthough these extensions are only available inside the Riverty app.

The only BNPL invoice solutions that don’t rely on apps are white label BNPL providers, such as Ratepay, which we’ll discuss later.

2. Installments

Unlike payment by invoice, installment plans almost always require a BNPL app and a verified customer account. That's because, typically, only users with a solid payment history qualify for this payment method.

BNPL apps offer two main types of installment plans:

Interest-free installments

Interest-free plans usually run for up to three months, partly due to PSD2 consumer protection rules.

Examples:

Scalapay: Splits the purchase into three equal monthly payments, with the first due at checkout.
Klarna: Offers the same pay in 3 installments plan.
Barclays (credit cards): Lets cardholders split purchases between €95 and €500 into three interest-free monthly payments.

While some BNPL providers like Scalapay focus primarily on these short-term plans, banks such as Klarna and Barclays offer additional financial products in their BNPL apps.

Interest-bearing installments

Interest-bearing installment plans are also common, with terms typically ranging from 6 to 24 months:

Barclays: Offers installment plans up to 24 months. The limit depends on the customer’s credit line, which can reach €10,000.
Klarna: Offers plans up to 36 months. No official maximum loan amount, but monthly installments must be at least €6.95.
PayPal: Allows installment credits for purchases up to €5,000.

Good to know: Many BNPL apps let users pay installments early or settle the full remaining balance ahead of time – usually without extra fees.

Credit checks in BNPL apps

Many BNPL apps offer additional financial management tools. These features are usually available only to registered users with an established account history, allowing the provider to assess payment behavior and liquidity. Here are some key examples:

1. Expense tracking

Die meisten BNPL-Anbieter stellen verschiedene Tools zur Ausgabenübersicht zur Verfügung. Riverty zum Beispiel bietet dafür gleich zwei Apps mit vielen nützlichen Funktionen.

Most BNPL apps provide tools to track spending:

Riverty: Offers two apps. One for managing invoice payments (including automated payments and returns management) and the Back in Flow app which links to your bank account to analyze income, expenses, projected balances, and savings opportunities.
Scalapay: Tracks all orders and payments, sends reminders for upcoming installments, and allows users to postpone or pay installments early.

These practical apps show that reputable BNPL providers prioritize financially responsible customers rather than pushing users into debt traps.

2. Linked payment methods

Creating an account in a BNPL app requires linking at least one payment method. While many apps accept a wide variety of payment methods like credit cards, PayPal, prepayment, or direct transfers, limitations exist:

Some apps may not accept certain debit cards.
New users may face restricted financing options until creditworthiness is established.
Others require a valid bank account, German residence, and good credit.
PayPal allows account setup without a bank account, but with limited functionality.

In a nutshell: Users unable or unwilling to provide certain information may face restrictions and will need to try a different BNPL app.

3. Converting payments

Some BNPL apps let users change the repayment method of existing purchases:

Klarna: Invoice payments can be extended or converted into installments, though monthly installments cannot be extended further.
PayPal: 30-day invoice payments can be extended to a maximum of 84 days; however, converting invoices to installments is not available.
Riverty: Users can split a monthly installment into multiple partial payments, as long as the total covers the required amount.
Barclays credit card: Allows converting monthly balances into installments and offers flexible part-payment options, with interest applied but full repayment always possible.

4. Buyer protection

Many BNPL apps provide buyer protection, covering issues such as non-delivery or major product discrepancies:

Klarna: Covers cases where goods are not received or differ significantly from the description.
PayPal: Offers both buyer and seller protection against fraud.

In practice, though, the terms for buyer protection are usually pretty strict:

Certain products (e.g., gift cards, digital downloads, or medications) may be excluded.
All deadlines for filing claims must be met.
Shoppers often must first attempt to resolve the issue with the merchant.
Proof of shipping may not prove receipt; lost shipments may not be covered.
Returning defective items is typically the buyer’s responsibility.
Protection may depend on whether the merchant properly informed the buyer of return rights.

In short, BNPL buyer protection is real but very complex, with strict conditions for it to take effect.

Conclusion

Many BNPL apps provide a wide range of payment options and services, giving shoppers flexibility, convenience, and control.

Most features, however, require shoppers to register, create an account, and engage with the app. Only in rare cases can BNPL payments be completed entirely without an account or app download.

And the deeper consumers go into the BNPL ecosystem, the stronger their relationship with the BNPL provider becomes – and the weaker their direct connection to the merchant.

Whether to maintain an independent brand presence or integrate into a BNPL ecosystem is, hence, a strategic choice. Businesses should carefully weigh the pros and cons before deciding.