Buy Now Pay Later (BNPL) is not a new concept in Switzerland — the classic purchase on invoice has been the most popular payment method for decades. What is new is that digital Buy Now Pay Later providers such as Klarna, TWINT Pay later, CembraPay and POWERPAY completely assume the credit check and default risk for Comerciantes. This guide compares the available Buy Now Pay Later models in Switzerland based on fees, risk assumption, conversion impact and target group fit.

This guide shows you how Buy Now Pay Later providers differ in the Swiss market, what they cost and which combination makes the most sense for your shop.

1. What "Buy Now, Pay Later" means in Switzerland — and what variants exist

Buy Now Pay Later refers to any payment method where buyers receive goods or services immediately and pay the purchase amount only later — typically within 14 to 30 days or in instalments. The Buy Now Pay Later market in Switzerland is growing strongly: a volume of around USD 2.89 billion is expected for 2026.

In Switzerland, there are three basic Buy Now Pay Later models:

Purchase on invoice with risk assumption: Buyer receives an invoice with a 14 or 30-day payment term. The Buy Now Pay Later provider assumes the credit check and default risk. Examples: Klarna (Invoice), CembraPay, POWERPAY, Ideal Payment.

Instalment payment: Purchase amount is divided into several partial amounts, typically 3, 6 or 12 instalments. Often interest-free for buyers. Examples: Klarna (Slice it), CembraPay.

Pay later via Wallet: Buyer uses an existing wallet app and selects the "Pay later" option. Example: TWINT Pay later (operated by Swissbilling).

2. Classic purchase on invoice with risk assumption: CembraPay, POWERPAY, Ideal Payment

These providers have been established in Switzerland for years and digitalised the purchase on invoice before the term Buy Now Pay Later existed.

CembraPay (Cembra Money Bank) is one of the largest Swiss Buy Now Pay Later providers. Cembra expanded its Buy Now Pay Later business to 446 million francs in 2023, partly through the acquisition of Byjuno. CembraPay offers purchase on invoice with and without partial payment, assumes the credit check and guarantees payment to Comerciantes. The conditions are agreed individually.

POWERPAY (MF Group AG) also offers purchase on invoice with a partial payment option. POWERPAY assumes credit checks, invoicing and debt collection. Particularly widespread among Swiss shops in the fashion, lifestyle and furniture sectors.

Ideal Payment targets small and medium-sized enterprises with lower entry barriers. The terms can be agreed individually, and the integration process is relatively uncomplicated.

All three providers are connected via Payrexx as External providers. This means: The contract is concluded directly with the provider, and payouts are made by the provider.

3. Klarna in Switzerland: Invoice, instalment payment and instant payment at a glance

Klarna has been active in Switzerland since 2021 and offers three payment modes:

Invoice (Pay in 30): Buyer has 30 days to pay. Klarna assumes the default risk.

Instalment payment (Pay in 3): Purchase amount is split into three interest-free instalments, due every 30 days.

Instant payment (Pay Now): Direct transfer via Klarna — works like a normal bank transfer, but via the Klarna app.

Klarna is directly available via Payrexx Pay Plus — without a separate contract with Klarna. The fees are 2.40 % + EUR 0.30 (Free/Standard) or 1.60 % + EUR 0.20 (Premium). Klarna is available in Switzerland, Germany, Austria, France and Italy — an advantage for shops with an international customer base.

Strengths: International brand awareness, instalment payment as a conversion driver for large shopping carts, buyer app with a loyal user base.

4. TWINT Pay later: How the Swiss Buy Now Pay Later product works

TWINT Pay later is the Swiss Buy Now Pay Later alternative, operated by Swissbilling. Buyers select TWINT as payment method at checkout and can then decide whether they want to pay immediately or later (within 30 days).

The big advantage: Buyers do not need an additional account or a new app. TWINT is installed on over 5 million smartphones in Switzerland. The credit check runs in the background via Swissbilling.

The fees for Comerciantes are 2.30 % + EUR 0.30 (Free) or 2.30 % + EUR 0.18 (Standard/Premium). TWINT Pay later is directly available via Payrexx Pay and can only be used in Switzerland — no international use possible.

Strengths: Highest reach in Switzerland thanks to TWINT's distribution, no additional onboarding for buyers, seamless integration into the TWINT payment flow.

Limitation: No instalment payment available — only "Pay now" or "Pay later" (30 days).

5. Fee comparison: What the different Buy Now Pay Later models cost Comerciantes

The following table shows the transaction fees of the Buy Now Pay Later providers available via Payrexx:

Calculation example with a EUR 100 shopping cart (Standard plan): Klarna costs EUR 2.70 per transaction. TWINT Pay later costs EUR 2.48. QR invoice costs EUR 0.50 — but without risk assumption. The difference of around EUR 2.00–2.20 per transaction is the "insurance premium" against payment defaults.

6. Conversion effect: Which Buy Now Pay Later model works best for which target group

Buy Now Pay Later acts as a conversion lever because customers can detach the purchase decision from the moment of payment. However, the effect is not the same across all target groups:

Younger customers (18–35 years) prefer Klarna and TWINT Pay later. Klarna has high brand awareness in this group, TWINT is emotionally anchored as the "Swiss solution". Instalment payment (Klarna) is particularly attractive for larger purchases.

Older customers (45+) are more accustomed to the classic purchase on invoice — CembraPay and POWERPAY match their usual process. TWINT Pay later is increasingly gaining acceptance within this group.

Fashion, shoes and lifestyle: Highest Buy Now Pay Later affinity. Return rates of 20–40 % make purchase on invoice an expectation, not an option. Klarna with instalment payment works particularly well here.

Electronics and furniture: High shopping carts (EUR 200–2,000). Instalment payment becomes the purchase decider. Klarna Pay in 3 or CembraPay with partial payment.

Groceries and everyday products: Small shopping carts (EUR 10–50). Buy Now Pay Later fees eat into margins. Here, TWINT Pay later (lower fixed fee in the Standard plan) or the QR invoice is more economical.

7. Combine instead of choose: Why many shops offer several Buy Now Pay Later options in parallel

The question is not "Klarna or TWINT Pay later?", but "Which combination covers my target group optimally?". Many Swiss shops already offer several options in parallel.

A common combination for Swiss shops: TWINT Pay later for Swiss customers who prefer their TWINT app, plus Klarna for international customers and for customers who want instalment payments. Additionally, the QR invoice for B2B customers and loyal regular customers where the default risk is low.

The rule remains: each Buy Now Pay Later method should only be active via one provider. Operating Klarna in parallel via Payrexx Pay Plus and as an External provider does not make sense. Customers choose their preferred option at checkout — you as the Comerciante configure the offering.

Checklist: Choosing the right Buy Now Pay Later solution for your Swiss online shop

• Analyse your target group: age, Switzerland vs. international, average shopping cart.

• Check if instalment payment is relevant for your shopping carts — from EUR 100 it becomes a conversion factor.

• Compare the fees with your actual default rate: Buy Now Pay Later is worth it if the fees are lower than your losses.

• Decide whether you need TWINT Pay later (CH-only) and/or Klarna (CH + EU).

• Clarify the integration: directly via your PSP or as an External provider?

• Test the checkout experience: are the Buy Now Pay Later options clearly presented, and is the decision-making process easy for customers?

• Monitor conversion rates after activation: measure the effect on shopping cart abandonment and revenue.