Buy Now, Pay Later (BNPL) continues to grow across e-commerce. Originally popular in fashion, beauty, and electronics, BNPL is now showing up in unexpected industries, including high-risk sectors like telemedicine, nutraceuticals, and online wellness.
For merchants in these categories, BNPL can offer higher conversion rates, larger average order values, and more payment flexibility without increasing chargeback risk. But most providers are still selective about who they approve.
Let’s take a look at how BNPL works, which companies are leading the space, and how Corepay helps high-risk merchants implement installment payments compliantly.
What Is BNPL?
BNPL is a short-term financing option that lets customers make a purchase and pay for it over time in fixed installments, often interest-free if payments are made on time.
How BNPL Works
BNPL allows customers to split a purchase into several interest-free payments over time. It functions like this:
- The customer selects BNPL at checkout.
- The BNPL provider pays the merchant upfront, minus a small fee.
- The customer pays the provider back in installments.
- The merchant gets paid immediately and does not assume repayment risk.
BNPL is especially helpful for larger ticket items where upfront cost could prevent a sale. By removing that barrier, merchants often see a measurable boost in revenue.
Why BNPL Is Gaining Traction in High-Risk Categories
High-risk merchants are often limited when it comes to financial tools. Many traditional processors block installment options or freeze funds for anything seen as risky.
BNPL offers a workaround. Since the provider takes on consumer credit risk, merchants gain a new way to offer financing without creating added liability.
Key sectors adopting BNPL in 2025 include:
- Telemedicine
Subscription-based services, GLP-1 treatments, and online consultations are expensive. BNPL helps make monthly access more affordable for patients. More on telemedicine payment processing and online pharmacy payment processing here. - Nutraceuticals and weight loss
Multi-month bundles or recurring shipments become easier to sell when customers can split payments. - Adult content and coaching
Premium subscriptions and wellness programs that were once too high-ticket for one-time purchases now convert better with installment options.
BNPL creates new revenue opportunities, but only if you work with a processor that understands your industry and can help you implement it correctly.
The Major BNPL Providers in 2025
The BNPL market has evolved quickly. Here are the key players and what high-risk merchants should know:
- Affirm
Offers longer-term financing, often used for larger purchases. Typically cautious with merchants in regulated or medical sectors. - Afterpay (Block)
Great for retail and beauty, but restrictive with adult, supplement, or medical merchants. - Sezzle
More open to alternative industries than others. Often a first choice for high-risk merchants seeking BNPL. - Klarna
Popular in the U.S. and Europe, but rarely approves merchants in regulated health or adult sectors. - Splitit and ViaBill
These providers let merchants manage more of the process. This creates flexibility but can add risk if not implemented correctly. - Corepay’s BNPL Integrations
Corepay works with BNPL providers that accept high-risk verticals and also offers installment routing through our Netvalve gateway. This gives you more flexibility, faster settlements, and full control over how installment payments appear in your checkout.
Compliance Tips When Using BNPL in Regulated Verticals
If you’re in a regulated industry, BNPL can be a powerful tool, but it has to be handled properly.
- Understand your provider’s underwriting process.
Getting approved once does not mean your account cannot be frozen later. Work with a partner that knows the compliance rules. - Be clear in your checkout and refund policy.
Customers need to understand how installment plans work, especially for recurring services or prescriptions. - Avoid DIY installment plans unless you have legal review.
If you plan to offer “in-house” BNPL, this may be considered consumer financing and could trigger lending laws depending on your region.
Corepay helps merchants stay compliant with all relevant card brand and regulatory standards. We ensure your BNPL setup aligns with Visa and Mastercard rules, and we only partner with providers willing to support your business model.
Looking to Add BNPL to Your Checkout?
If you’ve been turned down by Stripe, Square, or a traditional BNPL provider, Corepay can help.
We support:
- Custom BNPL integrations through Netvalve
- Partnerships with BNPL providers that accept high-risk merchants
- Full compliance for telemedicine, supplements, and adult
- Chargeback mitigation tools and fraud support
BNPL works best when it is tailored to your checkout and vertical. Contact us today to learn how we can implement BNPL for your business the right way.
