What you’ll learn in this post:
- How buy now, pay later (BNPL) services like Afterpay, Klarna, and PayPal Pay in 4 actually work for service-based businesses
- The real costs: merchant fees for each major BNPL provider, broken down side by side
- How BNPL compares to running your own payment plans (and which risk you’re really taking on with each)
- When BNPL makes sense for a doula practice and when it doesn’t
- How to offset BNPL fees through tax deductions and small pricing adjustments
- A practical decision framework to figure out the best payment approach for your business
One of the questions I hear from doulas at every stage of business is some version of: “How do I make it easier for clients to pay me without putting myself at risk?”
I get it. I’ve been running payment plans for my own classes for years. Most of the time, it works out fine. But every now and then, a client doesn’t follow through on payments, and you’re left in an uncomfortable spot. Do you chase the money? Do you not show up to the birth? Neither option feels great, and both can eat away at the trust you’ve worked hard to build.
That’s why I’ve been paying attention to the growing number of doulas asking about buy now, pay later services like Afterpay, Klarna, and PayPal Pay in 4. These services have been everywhere in retail for years, and now service providers, including doulas, are starting to explore them.
This post will walk you through how BNPL works, what it costs, how it compares to managing your own payment plans, and how to decide if it’s the right fit for your practice.
What Is Buy Now, Pay Later (and How Does It Work for Doulas)?
Buy now, pay later (BNPL) services let your client split their payment into installments, usually four payments over six weeks, while you get paid the full amount upfront. The BNPL company takes on the risk of collecting from your client. If the client misses a payment or stops paying altogether, that’s between them and the BNPL company. You’ve already been paid.
That last part is the key difference from traditional payment plans. When you run your own installment plan, you are the one waiting on each payment to come through. You are the one deciding what happens if it doesn’t. With BNPL, the financial risk shifts away from your business.
Most BNPL services work through an integration with your existing payment processor or invoicing system. Some, like Square with Afterpay (Square owns Afterpay), are built right into the checkout process. Others may require a separate setup.
What Does BNPL Cost? A Look at Merchant Fees
BNPL isn’t free. The company takes a percentage of each transaction as their fee for handling the installment payments and assuming the risk. Here’s what the major providers currently charge merchants:
| Provider | Merchant Fee | Consumer Plan | Notes |
| Afterpay (via Square) | 6% + $0.30 | Pay in 4 (6 weeks) | Built into Square; you get paid upfront, minus fees |
| Klarna | 3.29% – 5.99% + $0.30 | Pay in 4, Pay in 30, or 6-36 months | Largest global BNPL provider; rate varies by agreement |
| Affirm | 5.99% + $0.30 | Pay in 4 or monthly (3-60 months) | No late fees for consumers; longer-term options available |
| PayPal Pay in 4 | Standard PayPal fees (approx. 3.49% + $0.49) | Pay in 4 (6 weeks) | No additional BNPL fee; works if you already accept PayPal |
| Sezzle | 4-6% per transaction | Pay in 4 (6 weeks) | Smaller network; popular with younger consumers |
Let’s put that in real numbers. If your doula package costs $1,500 and a client pays through Afterpay (via Square), you’d pay about $90.30 in fees. Through Klarna at the lower end, it could be around $49.65. PayPal Pay in 4 would cost you roughly $52.65 in standard processing fees, with no additional BNPL surcharge.
Are those fees worth it? That depends on your situation, and we’ll get to that. But first, let’s compare this to what most doulas are already doing.
How BNPL Compares to Running Your Own Payment Plans
Plenty of doulas offer their own installment plans, and many do it successfully. You might split your fee into two or three payments, collect a deposit upfront, and schedule the rest before the due date. I’ve done this for years with my own classes.
The upside of doing it yourself is that you keep more of your money. You’re not paying an extra 4 to 6% in processing fees. Your credit card processor still takes its usual cut (typically around 2.5 to 3.5%), but there’s no additional BNPL fee on top.
The downside is that the risk stays with you. If a client stops paying after the second installment, you have a decision to make. And if you’ve already attended prenatal visits or even the birth itself, you can’t undo the work you’ve done. You’re out both the time and the income.
I’ve talked with doulas who’ve handled this in different ways. Some have strong contracts and enforcement. Others absorb the loss and move on. Some have stopped offering payment plans entirely because the unpredictability made it hard to plan their income month to month.
The question isn’t whether payment plans are good or bad. It’s about which kind of risk you’re more comfortable taking on: the financial risk of a client not paying, or the fee cost of having a company guarantee your payment.
When BNPL Might Be a Good Fit for Your Doula Business
BNPL isn’t the right choice for every doula or every client. But there are situations where it makes a lot of sense.
It may be worth considering if you’ve had clients ghost on payment plans in the past and you’re tired of chasing payments. It’s also worth looking at if the unpredictability of partial payments makes it hard for you to budget for your own life and business expenses. Some doulas find BNPL helpful when they want to offer flexibility to clients without taking on personal financial risk, or if they serve a clientele that’s already comfortable using BNPL services for other purchases. Newer doulas who don’t yet have the confidence or systems to enforce their own payment terms may find it especially useful.
On the other hand, BNPL may not be the best fit if your fees are on the lower end and the percentage-based fees would eat too much into your income. It may also not work well if your clients prefer to pay in full or use their own financing (like HSA/FSA accounts). And if you already have a payment plan system that works smoothly and you rarely have issues with nonpayment, there may be no reason to change what’s working.
How to Handle the Cost of BNPL Fees
The fees are real, and they add up. But there are a few practical ways to manage them.
First, BNPL merchant fees are tax-deductible as a business expense, just like your regular credit card processing fees. The IRS considers them ordinary and necessary costs of running your business. Make sure you’re tracking them separately in your bookkeeping so your accountant (or your tax software) can account for them correctly at tax time. This is true for all your payment processing fees, not just BNPL.
Second, some doulas build a small cushion into their pricing to cover processing costs in general. If you raise your fee by 3 to 5%, you’ve essentially offset the BNPL cost without dramatically changing your price point. A $1,500 package becomes $1,545 or $1,575. Most clients won’t blink at that difference, especially if you’re also offering them the convenience of installment payments.
Third, you don’t have to offer BNPL on every service or to every client. You could offer it as one of several payment options and let clients choose what works for them. Some will pay in full. Some will use BNPL. Some may still prefer a traditional payment plan if you offer one. Having choices is good for your clients and gives you flexibility too.
A Few Things to Think About Before You Sign Up
If you’re considering adding BNPL to your practice, here are a few practical things to look into first.
Check which services integrate with the tools you already use. If you’re already processing payments through Square, Afterpay is built in. If you use PayPal for invoicing, Pay in 4 may already be available to your clients at no extra cost to you beyond your standard processing fees. Klarna and Affirm may require separate merchant accounts or integrations.
Pay attention to payout timing. Most BNPL services pay you the full amount within a few business days, but the exact timeline varies by provider and by your agreement. Make sure you understand when the money actually hits your account.
Read the fine print about chargebacks and disputes. One of the big selling points of BNPL is that the risk shifts to the provider. But you’ll want to understand exactly what happens if a client disputes a charge or requests a refund, and how that affects your account.
Also, think about how you’ll communicate this to clients. BNPL works best when it’s presented clearly, as one option among several, not as the only way to pay. Clients appreciate having choices, and framing it that way keeps things professional.
Which Payment Approach Is Right for You?
There isn’t a single right answer here. The best approach depends on where you are in your business, how much financial risk you’re comfortable carrying, and what your clients need.
If you want the most control and the lowest fees, managing your own payment plans with strong contracts works well when you have the systems in place to support it. If you want the least risk and don’t mind paying a percentage for that peace of mind, BNPL is worth exploring. And honestly, plenty of doulas offer both. A client who wants to pay in two installments on their own timeline can do that. A client who wants the structure of Afterpay’s four-payment plan can do that instead.
What I wouldn’t recommend is avoiding payment flexibility altogether. Finding clients is already the number one concern I hear from doulas at every stage. If a client is ready to hire you but can’t come up with your full fee at once, having a way to work with them on payment is good for your business and good for the families you serve.
The Bottom Line
BNPL services are one more option in your payment toolkit, not a replacement for everything else. They shift the financial risk off your plate, and that alone makes them worth considering, especially if you’ve been burned by clients who didn’t follow through on payment plans.
The fees are a real cost, but they’re manageable with the right approach. Whether you treat them as a cost of doing business, build them into your pricing, or write them off at tax time, they don’t have to eat into your income in a meaningful way.
Take a look at what you’re already using for payments. See which BNPL options are available through those systems. And if it’s something that could make your life a little easier and your income a little more predictable, give it a try. You can always adjust as you go.
Related Posts:
- Doula Payment Plans: Should You Offer Installments or Require Full Payment?
- How Doulas Accept Payments Online (and What to Avoid)
- How to Price Your Doula Services: Creative Doula Pricing Packages That Work
- How Much Do Doulas Make? Let’s Talk About Money
- How Doulas Can Handle Chargebacks: A Guide to Protect Your Practice
- Choosing the Right Bank Account for Your Doula Business
