BNPL: UK 2026 Pricing & Fee Calculator
Buy Now, Pay Later fees are far higher than card rates because the provider pays you in full up front and carries the credit and fraud risk. This uses a typical UK BNPL rate.
What BNPL charges
| Fee | Rate |
|---|---|
| Typical UK BNPL merchant fee | About 3% to 6% + 20p to 30p |
| You are paid | In full, up front |
| Customer pays | Usually 0% interest in instalments |
How the fees work
BNPL providers typically charge merchants between 3% and 6% plus a small fixed fee. In return you are paid the full order value immediately, the provider chases the customer instalments, and most providers absorb the fraud and non-payment risk.
The trade-off can still pay off: retailers commonly report higher conversion and larger average baskets with BNPL on the checkout. Model it against your margin, because at 5% to 6% BNPL can wipe out the profit on a low-margin product.
Most providers do not publish a public rate card and price per merchant, so treat this as an estimate and confirm your quoted rate.
Check the official pricing
Fees change. Confirm the current rate at Klarna for business. Also: Clearpay for business.