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 — the 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 completely assume the credit check and the default risk for Comerciantes. This guide compares the available BNPL models in Switzerland by fees, risk assumption, conversion impact, and target group 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 what variants exist

BNPL 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 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: 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.

Instalment payment: Purchase amount is split 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 BNPL existed.

CembraPay (Cembra Money Bank) is one of the largest Swiss BNPL providers. Cembra expanded its BNPL 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 the credit check, invoicing, and debt collection. Particularly widespread among Swiss shops in the fashion, lifestyle, and furniture segments.

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

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

3. Klarna in Switzerland: Invoice, instalment, and immediate 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.

Immediate payment (Pay Now): Direct transfer via Klarna — works like a normal 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, instalment payment as a conversion driver for large shopping carts, 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 the payment method at the 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 via Swissbilling in the background.

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 is possible.

Strengths: Highest reach in Switzerland thanks to TWINT 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 BNPL models cost Comerciantes

The following table shows the transaction fees of the BNPL 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 default payments.

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

BNPL acts as a conversion lever because customers can decouple the purchase decision from the payment moment. However, the effect is not the same for all target groups:

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

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

Fashion, shoes, and lifestyle: Highest affinity for BNPL. 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 cart values (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 cart values (EUR 10–50). BNPL fees eat up the margin. Here, TWINT Pay later (lower fixed fee in the Standard-Plan) or the QR-invoice is more economical.

7. Combine instead of choosing: 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 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 regular customers where the risk of default is low.

At the same time: Each BNPL method should only be active via one provider. Running Klarna in parallel via Payrexx Pay Plus and as an external provider makes no sense. The customers select their preferred option in the 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 instalment payments are relevant for your shopping carts — from EUR 100 on, 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 the integration: directly through your PSP or as an External provider?

• Test the checkout experience: are the BNPL options clearly displayed, and is the choice process easy for customers?

• Observe the conversion rates after activation: measure the effect on shopping cart abandonments and sales.