Accept Afterpay payments

Afterpay (Clearpay in the UK) is an interest-free Buy Now Pay Later (BNPL) payment method that allows buyers to split their purchases into instalments—either in four payments or, for qualified US buyers, over 6 or 12 months. Through PayPal's integration, merchants can offer flexible payment options while receiving full payment upfront, creating a checkout experience that drives conversion and buyer satisfaction.

Afterpay helps your business:

• Receive full payment upfront while buyers pay in installments with a 95% on-time payment rate.
• Offer flexible payment options with Pay-in-4 interest-free installments or monthly payment plans over 6-12 months for qualified US buyers.
• Expand to key markets with support for the US and UK markets, where Afterpay operates as Clearpay in the UK.
• Increase average order value as buyers are more likely to complete higher-value purchases when they can pay in instalments.
• Simplify integration through PayPal's existing payment platform with minimal development effort.

1. Buyer: Selects Afterpay as their preferred payment method at checkout
2. Merchant | Partner: Creates an order using PayPal's Orders v2 API with Afterpay as the payment source
3. PayPal: Returns an order ID and a redirect link for Afterpay approval
4. Merchant | Partner: Redirects the buyer to Afterpay for payment approval
5. Buyer:
   1. Logs into their Afterpay account
   2. Reviews payment schedule (Pay in 4 instalments or monthly payments)
   3. Approves the payment
6. PayPal:
   1. Processes the Afterpay payment, where Afterpay pays the full amount to the merchant on behalf of the buyer
   2. Automatically captures the full payment amount upon approval
   3. Redirects the buyer back to the merchant's website
   4. Sends webhook notification to the merchant
   5. Settles money to the merchant's PayPal account within T+5 (5 business days)
7. Merchant | Partner: Confirms payment completion and fulfils the order

• Account type: Verified PayPal Business account required with KYC completion.
• Geographic availability: Available to merchants in the US and UK markets.
• Buyer coverage: Buyers in the US and UK can pay using Afterpay (Clearpay in the UK) without creating a PayPal account.
• Platform availability: Available for PayPal for Business integrations using the Orders v2 API.
• Transaction amounts: Accept payments starting from 1.00 USD and 1.00 GBP. For detailed limits, see Payment amount limits.
• Settlement: T+5 settlement with funds available for withdrawal.
• Merchant categories: Restricted merchant categories apply. See Prohibited merchant categories.