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 invoice payment has been the most popular payment method for decades. What is new is that digital BNPL providers like Klarna, TWINT Später bezahlen, CembraPay and POWERPAY completely take over the credit check and default risk for merchants. 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 takes over 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 (Instalment purchase), CembraPay.

Pay later via wallet: Buyer uses an existing wallet app and selects the "Pay later" option. Example: TWINT Später bezahlen (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 invoice purchasing before the term BNPL existed.

CembraPay (Cembra Money Bank) is one of the largest Swiss BNPL providers. Cembra expanded its BNPL business to CHF 446 million in 2023, partly through the acquisition of Byjuno. CembraPay offers purchase on invoice with and without partial payment, takes over the credit check and guarantees payment to merchants. The terms are agreed individually.

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

Ideal Payment is aimed at 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 to 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 payment 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 takes over the default risk.

Instalment payment (Pay in 3): Purchase amount is divided 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 % + CHF 0.30 (Free/Standard) or 1,60 % + CHF 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 baskets, buyer app with a loyal user base.

4. TWINT Später bezahlen: How the Swiss BNPL product works

TWINT Später bezahlen 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 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 merchants are 2.30 % + CHF 0.30 (Free) or 2.30 % + CHF 0.18 (Standard/Premium). TWINT Später bezahlen 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 merchants

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

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

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 moment of payment. However, the effect is not the same for all target groups:

Younger customers (18–35 years) prefer Klarna and TWINT Später bezahlen. 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 the familiar process. TWINT Später bezahlen 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 baskets (CHF 200–2,000). Instalment payment becomes the purchase decider. Klarna Pay in 3 or CembraPay with instalment option.

Food and everyday products: Small shopping baskets (CHF 10–50). BNPL fees eat into the margin. Here, TWINT Später bezahlen (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 Später bezahlen?", but rather "Which combination covers my target group optimally?". Many Swiss shops already offer several options in parallel.

A common combination for Swiss shops: TWINT Später bezahlen 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.

The rule is: Each BNPL method should only be active via one provider. Running Klarna in parallel via Payrexx Pay Plus and as an external third-party provider does not make sense. The customer selects their preferred option at Checkout — you as the merchant configure the offering.

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

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

• Check whether instalment payments are relevant for your shopping baskets — from CHF 100 it becomes a conversion factor.

• Compare the fees with your actual default rate: BNPL is worth it if the fees are lower than your losses.

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

• Clarify the integration: directly via your PSP or as an external third-party provider?

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

• Observe conversion rates after activation: measure the effect on abandoned shopping baskets and revenue.