> For the complete documentation index, see [llms.txt](https://docs.xyb.co/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.xyb.co/credit/create-a-bnpl-product.md).

# Create a BNPL Product

Buy Now, Pay Later (BNPL) offerings have become a key competitive tool for lenders, payment providers, and merchants. Whether you're enabling flexible financing for small businesses, e-commerce buyers, or in-store customers, a BNPL product allows your customers to split payments over time without compromising on their buying power or your cash flow.

BNPL also supports better customer retention, increased average order value, and gives you a clear framework for controlling credit risks.

***

#### Prerequisites

Before configuring a BNPL product, ensure the following services are already set up:

| Service                                | Why it matters                                          |
| -------------------------------------- | ------------------------------------------------------- |
| **Product Configuration**              | Foundation for creating credit products                 |
| **Credit Contract Service**            | Enables contract management for repayment schedules     |
| **Entity Service**                     | Needed to segment customers and merchants               |
| **Collateral Service (if applicable)** | If any BNPL scheme requires secured payments            |
| **Fee Service**                        | To configure late fees, processing fees, etc.           |
| **Template Service**                   | For generating customer-facing contracts and agreements |

***

#### Steps to Create a BNPL Product

**1. Create a New Product**

Navigate to the Products section and create a new product. Set basic details like product name and version. For example:

* **Name**: BNPL Small Business
* **Version**: 1.0.0

**2. Add the BNPL Service**

Click `+ Add service` and select **Buy Now Pay Later** from the list of available services. This attaches BNPL logic to your product configuration.

**3. Configure BNPL Terms**

These define the base identity of your BNPL product.

* **Group**: Automatically populated as “BNPL”
* **Code**: Unique code identifier for internal tracking
* **Name**: Friendly name like “BNPL for Merchants”

**4. Set Roles and Scope**

Define the main actors and target audience.

* **Owner**: Legal entity that owns and disburses the credit
* **Merchant**: Select the merchant entity linked to the BNPL scheme
* **Customer Sectors and Segments**: Limit the product to specific business types (e.g., “Retail” or “SME”)

**5. Credit Limit Configuration**

Define how much credit can be offered per customer.

* **Credit Limit Rate**: Set a default credit limit, such as 1000 EUR
* **Type**: Choose product behavior type (e.g., fixed installment, deferred payment)

**6. Choose Settlement Type**

Select how repayments should be handled:

* Examples: Equal Installments, Deferred Until End, or Flexible Schedule

**7. Configure Fees**

Use predefined fee types from the Fee Service:

* **Fee Type**: Choose from Application Fee, Processing Fee, etc.
* **Default, Min, Max Values**: Set thresholds for flexibility and compliance

**8. Attach Templates**

Link agreement templates that customers will sign:

* **Template Name**: Choose from available legal templates
* **Default Language**: Select default language for customer communication
* **Description**: Optional note about the template

**9. Save and Activate**

Once all fields are configured, click **Save**. Review your BNPL product and set it to **Active** once you're ready to deploy it to customers.

***

This BNPL product can now be linked to contracts and disbursed to qualified customers. Because it's built using pre-configured services, every fee, schedule, and logic layer is automatically enforced helping you stay compliant, scalable, and customer-friendly.

Use this product to offer flexible payment plans, digital contracts, and automated repayment tracking in one unified solution.


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