Purchase on account vs. Klarna vs. TWINT Pay later: BNPL comparison for Swiss online shops

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

This guide shows you how BNPL 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 which variants exist

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

In Switzerland, there are three basic BNPL models:

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

Installment payment: The purchase amount is divided into several installments, typically 3, 6, or 12 installments. Often interest-free for buyers. Examples: Klarna (Pay in installments), CembraPay.

Pay later via wallet: The 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 digitized purchase on invoice before the term BNPL existed.

CembraPay (Cembra Money Bank) is one of the largest Swiss BNPL providers. In 2023, Cembra expanded its BNPL business to 446 million francs, among other things through the acquisition of Byjuno. CembraPay offers purchase on invoice with and without installment payments, handles credit checks, and guarantees payment to Comerciantes. Conditions are agreed upon individually.

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

Ideal Payment is aimed at small and medium-sized enterprises with lower barriers to entry. Conditions are individually negotiable, and the integration process is comparatively uncomplicated.

All three providers are integrated into Payrexx as external External providers. This means: the contract is concluded directly with the provider, and payouts are made by the provider.

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

Klarna offers three payment modes in Switzerland:

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

Installment payment (Pay in 3): The purchase amount is split into three interest-free installments, due every 30 days.

Instant payment (Pay Now): Direct bank transfer via Klarna — works like a standard bank payment, 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, installment payments as a conversion driver for high basket values, buyer app with a loyal user base.

4. TWINT Pay Later: How the Swiss BNPL product works

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

The major advantage: Buyers do not need an additional account or a new app. TWINT is used by over 6 million people 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 market penetration, no additional onboarding for buyers, seamless integration into the TWINT payment flow.

Limitation: No installment payment available — only “Pay now” or “Pay later” (30 days).

5. Fee comparison: What the different BNPL models cost Comerciantes

The following table shows the transaction fees of BNPL providers available via Payrexx:

Calculation example with an EUR 100 shopping cart (Standard Plan): Klarna costs EUR 2.70 per transaction. TWINT Pay Later costs EUR 2.48. QR-invoice costs EUR 1.50 (minimum fee) — however without risk assumption. The difference of around EUR 1.00–1.20 per transaction is the “insurance premium” against payment defaults.

6. Conversion effect: Which BNPL model works best with which target group

BNPL acts as a conversion lever because customers can decouple 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 a “Swiss solution”. Installment payments (Klarna) are particularly attractive for larger purchases.

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

Fashion, shoes, and lifestyle: Highest BNPL affinity. Return rates of 20–40 % make purchase on invoice an expectation, not an option. Klarna with installment payments works especially well here.

Electronics and furniture: High shopping cart values (EUR 200–2,000). Installment payments become a decisive purchasing factor. Klarna Pay in 3 or CembraPay with installment options.

Groceries and everyday products: Small basket values (EUR 10–50). BNPL fees erode margins. Here, TWINT Pay Later (lower fixed fee in the Standard Plan) or the QR-invoice is more economical.

7. Combine rather than choose: Why many shops offer several BNPL 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 multiple options simultaneously.

A common combination for Swiss shops: TWINT Pay Later for Swiss customers who prefer their TWINT app, plus Klarna for international customers and customers who want installment payments. In addition, the QR-invoice for B2B customers and regular customers where the risk of default is low.

The rule here is: each BNPL method should only be active via one provider. Running Klarna in parallel via Payrexx Pay Plus and as an external External provider does not make sense. The customer chooses their preferred option at checkout — you as the Comerciante configure the offering.

Checklist: Choosing the right BNPL solution for your Swiss online shop

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

• Check whether installment payment is relevant for your shopping carts — starting from EUR 100 it becomes a conversion factor.

• Compare the fees with your actual default rate: BNPL pays off if the fees are lower than your losses.

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

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

• Test the checkout experience: Are the BNPL options clearly displayed, and is the decision-making process easy for customers?

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