Payment plans and installment options are a key way for businesses to make high-value products and services more accessible to a range of customers. With Stripe payment plans, you can offer customers the flexibility to pay in installments, spread out the cost of digital products, events, or courses.
At Checkout Page, we enhance Stripe’s capabilities with no-code checkout pages that make it simple for creators and businesses to set up Stripe payment plan options, manage recurring payments, and recover abandoned carts, without any development work.
Offering Stripe installment payments can increase conversions, encourage larger purchases, and improve customer satisfaction. Perfect for anyone scaling their digital product or event ticketing businesses.
What are Stripe payment plans and installments?
Stripe offers two ways to let customers pay over time:
Seller-managed installment plans
Your business controls payments directly using Stripe subscriptions. You set the amount, frequency, and duration, and collect payments over time. This approach works well for high-ticket digital products, courses, or multi-day events, giving full control over pricing, customer relationships, and margins.
Buy now, pay later (BNPL)
Third-party providers like Klarna or Afterpay pay the seller upfront while the customer repays the provider. This shifts repayment risk away from the business but introduces fees, third-party management, and eligibility restrictions.
Offering payment plans helps businesses:
- Lower upfront costs and attract more customers
- Increase average order value
- Reduce abandoned carts
For businesses that want to avoid third-party fees, seller-managed Stripe installment plans are a flexible alternative.
Buy now, pay later (BNPL) options with Stripe
BNPL providers through Stripe let customers purchase immediately and pay in interest-free installments. The seller receives full payment upfront, while the provider manages repayment and risk.
Fees and trade-offs with BNPL
- Klarna and Afterpay charge a percentage plus a fixed fee per transaction.
- BNPL may increase conversions but reduces direct control and margins.
When BNPL makes sense
- Immediate payment is needed
- Risk of non-payment must be minimized
- Your audience prefers interest-free financing
For full control and zero third-party fees, seller-managed Stripe installment plans remain the preferred option for digital products, courses, or events delivered over time.
Considerations before offering payment plans with Stripe
Before offering Stripe payment plans or buy now, pay later Stripe options, it’s important to understand how different approaches affect fees, customer relationships, and eligibility.
Seller-managed payment plans vs buy now, pay later
Feature | Seller-managed Stripe payment plans | Buy now, pay later (BNPL) |
|---|---|---|
Who manages repayments | You (via Stripe subscriptions) | Third-party provider |
When seller gets paid | Over time | Upfront |
Fees | Standard Stripe fees only | Higher % + fixed BNPL fees |
Customer relationship | Direct | Indirect |
Works for subscriptions | Yes | No |
Works for B2B | Yes | No |
Risk of non-payment | Seller | BNPL provider |
Best for | Courses, events, digital products | Retail, one-off purchases |
When BNPL with Stripe may not be a good fit
Stripe buy now pay later options may not align well with your business if:
- ⚠️ Your customers are primarily businesses
BNPL services on Stripe are designed for consumer use and are generally not available for B2B payments. - ⚠️ Your product depends on subscriptions or recurring billing
Current BNPL options do not support invoicing or subscription-based payments.
In addition, each BNPL provider enforces category restrictions.
Klarna prohibited categories include:
- Charities
- Political organizations, parties, or initiatives
Afterpay (Clearpay) restricted categories include:
- Alcohol
- Donations
- Pre-orders
- NFTs
Businesses operating in these categories, or those delivering products over time, may find seller-managed Stripe payment plans to be a more suitable option.
Risk considerations with seller managed installment plans
- Seller-managed installment plans carry some risk if customers cancel before completing all payments.
- Taking an upfront deposit, charging a setup fee, or aligning access with payment completion can help mitigate this risk.
- BNPL shifts repayment risk to the provider but reduces flexibility and increases fees.
Understanding these differences helps you choose the most appropriate Stripe payment plan options for your product, audience, and revenue model.
Mitigating risks when selling products in installments
Even with Stripe payment plans for customers, there are considerations to reduce the risk of non-payment or early cancellations. Some strategies include:
- Take an upfront payment or deposit: Ensures customers are committed to completing the plan.
- Offer incentives for completing the plan: Bonuses, discounts, or certificates can encourage customers to stay on track.
- Set clear terms: Define installment amounts, payment dates, and duration to avoid confusion.
- Focus on customer retention: Providing excellent value throughout the plan increases the likelihood of full payment and repeat business.
By following these best practices, businesses can confidently offer Stripe installment plans or phased payment options, giving customers the flexibility they want while maintaining control over revenue and customer relationships.
The risk mitigation checklist
Before you "Go live" with your first payment plan, ensure you have these four safeguards in place:
- ✅ Strict "Access-to-payment" alignment: For digital courses, ensure your "Drip" content schedule matches the payment schedule. If a payment fails on Month 2, the customer should not automatically get Month 3 content.
- ✅ The "Partial-Pay" legal clause: Update your Terms of Service to state: "Access to [Product Name] is contingent upon the completion of all installment payments. Failure to pay results in immediate revocation of access without refund of previous installments."
- ✅ Automated "Dunning" sequence: Set up your Stripe settings to "Smart Retry" failed cards at least 4 times over 3 weeks before canceling the subscription.
- ✅ The "Setup fee" barrier: Always charge a non-refundable deposit (e.g., $99). This covers your processing costs and ensures the customer has "skin in the game" from day one.
How Checkout Page helps you offer Stripe payment plans
Checkout Page enables businesses to offer Stripe payment plans using Stripe’s native subscription infrastructure, without custom code. This allows sellers to create Stripe installment payments that are managed directly through Stripe, rather than through third-party buy now, pay later providers.
With Checkout Page, sellers can:
- Set installment amounts, frequency, and duration
- Add upfront deposits or setup fees
- Offer Stripe payment installments without additional transaction fees
- Keep direct control over customer relationships
Unlike buy now pay later Stripe options, which involve third-party lenders and higher fees, Checkout Page supports seller-managed Stripe installment plans, making it well suited to digital products, online courses, and events delivered over time.
Checkout Page also extends Stripe Checkout with functional features such as:
- Hosted or embedded checkout pages
- Product variants, images, and detailed descriptions
- Upsells and basic funnel flows
- Abandoned cart recovery via email
- Digital file delivery after purchase
For businesses evaluating Stripe payment plan options, Checkout Page provides a no-code way to offer flexible installment plans while keeping payments, subscriptions, and customer data within Stripe.
Checkout Page customer example
Checkout Page customer Gigantic uses the payment plan option in conjunction with other features to offer phased payment to an audience interested in their live multi-week training programs:
Gigantic’s Product Leadership course costs a total of $1,499 and is set up as follows:
- Initial $99 refundable deposit (Setup fee)
- Payment plan with 4 monthly payments of $350 ($1400)
- Start date (charge of first payment plan cycle) set to start of cohort (25 March 2024)
Conclusion
Stripe offers several ways to give customers more flexible payment options, including installment payments, subscriptions, and buy now, pay later through third-party providers. The right approach depends on your product type, audience, and margin sensitivity.
For businesses selling high-value digital products, courses, or events delivered over time, seller-managed Stripe payment plans can be a strong alternative to BNPL. They allow customers to pay in installments while giving sellers control over pricing, payment schedules, and customer relationships, without additional financing fees.
If you want to offer Stripe payment plans without third-party fees or complex setup, you can try Checkout Page free for 7 days and see how quickly you can launch your first installment plan.
Considering selling digital products with Stripe? Why not take a look at our article How to sell digital products with Stripe and Checkout Page.
Frequently asked questions (FAQs)
Does Stripe offer payment plans?
Yes. Stripe does offer payment plans, but they are implemented using subscriptions, invoices, or buy now, pay later partners rather than a single built-in feature.
Does Stripe offer payment plans for customers?
Stripe payment plans for customers can be offered either as seller-managed installment plans (using subscriptions) or through third-party buy now, pay later providers such as Klarna or Afterpay.
What are Stripe payment plan options?
Stripe payment plan options include subscription-based installment payments, phased billing setups, and buy now, pay later Stripe services. No-code tools can simplify these setups for non-developers.
Is Stripe buy now, pay later the same as installment payments?
No. Stripe buy now pay later options involve third-party lenders that pay the seller upfront and collect installments from the customer. Stripe installment plans managed by the seller collect payments over time directly from the customer.
Can Stripe split payments or offer pay in 4?
Yes. Stripe can support split payments and pay in 4 options through buy now, pay later providers. Seller-managed installment plans can also split payments, but the structure is defined by the business rather than a lender.
