> 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/getting-started/create-a-bnpl-product-tutorial.md). # Create a BNPL Product - Tutorial This tutorial walks you through the step-by-step process of configuring a Buy Now, Pay Later (BNPL) product using the XYB platform. BNPL is a popular financing model that lets customers split payments over time, typically interest-free, making it ideal for increasing conversion at checkout. ### STEP 1: Create a New Product in Product Configuration Navigate to **Product Configuration > Products**, then click **Create New Product**. #### Fields: * **Product Name**: Internal and external display name. * **Reference Code**: Unique identifier, often auto-generated. * **Product Group**: Logical grouping such as `BNPL`, `Retail Loan`, `Microcredit`. Used for reporting and eligibility targeting. * **Product Type**: * `CREDIT`: For any lending product. * `DEPOSIT`: For saving or wallet accounts. * **Status**: * `Draft`: Editable. * `Active`: Available for contract creation. * `Inactive`: Not available for new usage. *** ### STEP 2: Add a Credit Contract Service Attach the **Credit Contract v42** or latest available version. #### General Configuration: * **Group**: Logical identifier used to tag product family (e.g., `BNPL`, `POS-Finance`). * **Type**: * `FIXED_INSTALLMENTS_WITH_INTEREST`: Predictable monthly payments with interest. * `FIXED_INSTALLMENTS_WITHOUT_INTEREST`: Zero-interest model. * `BULLET`: Principal paid at end. * `BALLOON`: Some principal paid monthly; large amount at end. * `FLEXIBLE_INSTALLMENTS`: Customer-defined repayment. * **Merchant**: The party receiving the funds. * **Account Number**: Merchant account to credit funds. * **Currency**: Single or multiple allowed (inherited from global config). #### Why it matters: Defines structure of financial flows: disbursement, repayment, and accounting. *** ### STEP 3: Terms * **Owner**: Entity issuing the credit contract (e.g., a lender). * **Owner Account Number**: Where repayments are collected. * **Length Type**: * `DAY`, `WEEK`, `MONTH`, `YEAR`: Determines how contract duration is measured. * **First Interest Payback Period**: When interest begins to be repaid (e.g., period 1). * **First Principal Payback Period**: When principal repayment begins. * **Settlement Type**: * `ORDER_BY_DATE_AND_TYPE`: Prioritize earliest due items by component type. * `ORDER_BY_PRIORITY`: Custom-defined priority. * `CUSTOM`: Flexible ruleset (advanced use only). *** ### STEP 4: Settlement Order Defines the order in which components are paid: * **Components**: * `PRINCIPAL` * `INTEREST` * `FEE` * `PENALTY` * You can reorder based on financial strategy: risk-first (principal), revenue-first (interest). *** ### STEP 5: Schedule Configuration #### Schedule Types: * `FIXED_PRINCIPAL` * `FIXED_INTEREST` * `FIXED_PRINCIPAL_AND_INTEREST` * `EQUAL_INSTALLMENTS` * `MANUAL` Used to calculate installments. #### Frequencies: * `DAILY`, `WEEKLY`, `BIWEEKLY`, `MONTHLY`, `QUARTERLY`, `YEARLY` Used for both **Principal Payment Frequency** and **Interest Payment Frequency**. #### Agreement Length: * Define **default**, **min**, **max**, and **step** for duration. * Based on `Length Type` above. #### Amount Configuration: * **Default Amount**: Suggested default. * **Min / Max**: Range of permitted loan size. * **Step**: Increment allowed (e.g., steps of 5). *** ### STEP 6: Customer Eligibility * **Customer Sector**: * `PRIVATE_CUSTOMER`, `BUSINESS`, `FREELANCER`, etc. * **Customer Segment**: * Free-text based targeting (e.g., `Premium`, `Startup`) Determines who can see and access the product. *** ### STEP 7: Interest Configuration #### Interest Type: * `PRINCIPAL`, `DISBURSED`, `OVERDUE` #### Variable Type: * `FIXED`: Static interest rate. * `INDEXED`: Uses market index (e.g., ESTR). * `TIERED`: Changes by amount or duration. #### Interest Rate Values: * **Default**, **Min**, **Max** (in decimal form, e.g., 0.15 = 15%) #### Day Count Conventions: * `E30_360`, `ACT_360`, `ACT_365`: Defines how interest is calculated based on actual or fixed day models. #### Booking Period: * `DAILY`, `MONTHLY`, `QUARTERLY`: Frequency of interest accrual entries. #### Rounding Method: * `UP`, `DOWN`, `NEAREST` #### Frequency: * How often interest is **paid** by the customer (typically `MONTHLY`) #### Is Paid by Customer: * Toggle to include interest as part of customer’s schedule. *** ### STEP 8: Fees * **Calculation Method**: * `FIXED_AMOUNT`, `PERCENTAGE`, `TIERED` * **Type**: * `ON_CONTRACT_CREATED`, `ON_OVERDUE`, `RECURRING`, etc. * **Amount / Percentage**: Value of fee. * **Recipient**: Can be lender, merchant, platform. Fees increase monetization and cover operational costs. *** ### STEP 9: Contract Template Attach an existing **Credit Agreement Template** for digital signing, downloadable PDF or regulatory compliance ### 10: Save and Activate Once all sections are complete: * Click **Save** * Review product status * Set to **Active** to use it in contracts *** ### Outcome You’ve now built a complete BNPL product, fully equipped with: * Logical fund flow * Repayment rules * Pricing strategy * Customer eligibility * Digital contract support This product is now ready to be used when creating credit contracts. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. 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