For Merchants — BNPL & Installment Sales in the Philippines

Buy-now-pay-later (BNPL) partnerships let merchants offer split payments at checkout while often receiving full payment upfront from the provider. This guide explains the model for Filipino retailers — it is not a partner signup page.

Why merchants consider BNPL

Retailers explore installment options to:

• Increase conversion — customers who hesitate on lump-sum prices may proceed with smaller scheduled payments
• Raise average order value — shoppers sometimes add items when monthly increments feel manageable
• Reach younger demographics — app-based BNPL is familiar to mobile-first buyers in Metro Manila and provincial cities

How the partnership typically works

1. You integrate a BNPL provider at online or in-store checkout.
2. The customer selects a payment plan and gets approved (or declined) in seconds.
3. The provider pays you the purchase amount (minus merchant fees) according to contract terms.
4. The customer repays the provider on the agreed schedule.

The provider usually assumes credit risk — but merchant fees, return handling, and dispute rules vary by contract.

Questions to ask any BNPL partner

• Merchant discount rate (MDR) — what percentage is deducted per transaction?
• Settlement timing — when do funds hit your account?
• Returns & refunds — who handles partial refunds on active plans?
• Categories allowed — some providers restrict certain product types
• Branding — co-marketing requirements and customer data ownership

Risks and responsibilities

Offering installments does not replace solid product quality and customer service. Chargebacks, returns, and unclear product descriptions still affect your reputation — the finance layer adds another support channel customers may contact when confused about payment dates.

Further reading

• How installment shopping works for the consumer side
• BNPL Philippines guide for market context

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