In-house payment plans vs. buy now, pay later
Both let a customer pay over time. The difference is who lends the money, who decides and who keeps the margin.
Buy now, pay later (BNPL) providers such as Affirm, Klarna and Afterpay pay the merchant for the sale and collect from the customer themselves. An in-house payment plan cuts out the middle: the customer pays the business directly, in installments the business sets.
| Question | In-house payment plan | Buy now, pay later |
|---|---|---|
| When you get paid | Over the plan, as each installment is paid | Usually up front, minus the provider’s fee |
| Who approves the buyer | You | The provider |
| Who carries non-payment risk | You | Usually the provider |
| Cost to you | Your software and normal card processing | A merchant fee per sale, often several percent |
| Deposit and custom schedule | You set them | Provider’s plan options |
| Customer relationship after the sale | Stays with you | Customer repays the provider |
| Best for | Considered purchases sold through a conversation | Online checkout with many buyers you don’t know |
General comparison. Fees, approval rules and payout timing vary by provider and change over time; check each provider’s current merchant terms.
When an in-house plan is the better fit
- You sell high-ticket services or programs where you know the customer before they buy.
- Your margin matters more than getting every dollar on day one.
- You want to set the deposit and schedule yourself.
- You close sales on calls or with proposals, not only at an online cart.
When BNPL is the better fit
- You sell online to many buyers you’ll never speak to.
- You can’t afford to wait months for the full price.
- You don’t want to carry the risk of a customer stopping payment.
Where Cadence fits
Cadence is for the in-house column. It does not lend money or approve buyers. It turns your price into a deposit and installment schedule, gets the customer to accept those terms, issues each installment as a Stripe invoice from your account and keeps an exact balance. See the features.
Questions
Is an in-house payment plan the same as financing?
No. With an in-house plan, the customer pays you over time for what they bought. No lender is involved. Check local rules if you add interest or fees, as that can change how a plan is treated.
Why would a business skip BNPL?
To keep the full sale price, to decide eligibility themselves, or because their sales happen on calls and proposals rather than at an online checkout.
Why would a business choose BNPL?
To be paid up front and pass non-payment risk to someone else. That is worth the fee for many merchants, particularly in ecommerce.
Can I offer both?
Yes. Some businesses offer BNPL at checkout and an in-house plan for customers who buy through a conversation.
Offer the plan. Know the balance.
Stripe collection is in a sandbox pilot. No live payments yet.