As a savvy online shopper and pet parent, you‘re always looking for ways to get the best products for your furry friends while sticking to a budget. One payment option that has exploded in popularity recently is buy now, pay later (BNPL) financing from companies like Afterpay, Klarna, Affirm, and Zip. These services let you split your purchase into equal installments spread out over several weeks or months, often with no interest or fees if you pay on time.
For many shoppers, especially younger Millennials and Gen Zers, BNPL has become the preferred way to afford larger purchases and align payments with their cash flow. In fact, a recent report by Insider Intelligence projects that BNPL lending will continue its rapid growth trajectory to reach over $75 billion in loan volume by 2025. That would make it the fastest-growing segment of the unsecured lending market.
So what does this mean for pet owners who prefer to shop at online retailer Chewy for their furry family‘s needs? Can you apply popular BNPL payment plans to your Chewy orders? In this ultimate guide, we‘ll dive deep into the current state of buy now, pay later options at Chewy and arm you with all the information you need to make the best decision for your budget and pet care priorities. Let‘s fetch the details!
How Buy Now, Pay Later Works
Before we sniff out the BNPL situation at Chewy specifically, let‘s make sure we‘re all on the same page about how this alternative financing solution works in general. While each BNPL provider has its own unique terms and conditions, most follow a similar model:
- At checkout, the customer chooses the BNPL option instead of entering a credit/debit card.
- A soft credit check is performed to confirm eligibility and assign a spending limit.
- If approved, the full purchase amount is split into a set number of equal installments.
- The first installment is due at the time of purchase, with the rest automatically billed to the customer‘s linked payment method every 2 weeks.
- As long as all payments are made on time, no interest or additional fees are charged. Late payments may incur fees and impact credit score.
The appeal of BNPL over traditional credit cards or loans lies in its speed, simplicity, and predictability. Most providers tout benefits like:
- Instant approval decisions with no hard credit check
- No interest charges for short-term financing
- Automated payments you can align with your paycheck schedule
- Ability to spread out cost of big-ticket items
- Easy tracking and management through mobile app
Of course, BNPL isn‘t without its risks and drawbacks. Missed payments can result in late fees ranging from $5-$15 and may be reported to the credit bureaus. Even on-time payments aren‘t usually reported to build credit history. And the ease of getting approved for multiple concurrent BNPL plans can tempt some shoppers to bite off more than they can chew.
To put the rapid rise of BNPL into perspective, check out these eye-opening statistics:
| BNPL Adoption & Growth Stats | Value |
|---|---|
| BNPL users in the U.S. (2022) | 79.6 million |
| Projected BNPL users by 2026 | 102.7 million |
| Share of Gen Z using BNPL | 25.5% |
| Share of Millennials using BNPL | 30.3% |
| Average annual BNPL spend per user | $1,073 |
| Total BNPL lending market value (2022) | $46.9 billion |
| Projected BNPL lending by 2025 | $76.2 billion |
Sources: Insider Intelligence, eMarketer, Momentive
BNPL Options at Chewy
Now that we‘ve covered the basics of how buy now, pay later works and its skyrocketing popularity with consumers, let‘s get back to the burning question at paw: What‘s the deal with using BNPL at Chewy?
As the largest pure-play pet e-tailer, Chewy has seen its net sales soar from $3.5 billion in 2018 to over $10 billion in 2022 while expanding its active customer base to 20.5 million pet households. The company‘s overarching mission is to be the most trusted and convenient online destination for pet parents, so you‘d think offering flexible financing options would fit right into that ethos. However, a closer look at Chewy‘s accepted payment methods reveals that BNPL integration is still a work in progress.
According to Chewy‘s official help center and terms of service, the following payment options are currently accepted as of April 2023:
- Visa, Mastercard, American Express, and Discover credit cards
- Visa, Mastercard, and American Express debit cards
- PayPal
- Apple Pay
- Chewy gift cards
Notably missing from that list? The two biggest names in the BNPL space – Afterpay and Klarna. Despite their massive user bases and partnerships with countless online retailers, Chewy does not have a direct integration with either service at this time. The same goes for Affirm and PayPal‘s Pay in 4 installment option. Even though Chewy accepts regular PayPal transactions, the BNPL version is not supported.
That said, a lack of formal BNPL partnerships hasn‘t stopped some determined Chewy shoppers from finding creative workarounds. Thanks to virtual card technology, a few leading BNPL providers can be used to pay at any online store that accepts regular debit/credit card payments – no merchant approval required.
Using Klarna at Chewy
The most widely reported hack for applying BNPL to Chewy purchases is through Klarna‘s app. Even though Chewy isn‘t listed as a partnered retailer, savvy customers discovered they could use Klarna‘s one-time virtual card at checkout and split their payments that way. Here‘s how it works:
- Download the Klarna app and create an account
- Browse Chewy and add items to your cart as usual
- At checkout, open the Klarna app and tap "Pay with Klarna" anywhere
- Enter the total purchase amount and select the "Pay in 4" option
- Klarna performs a soft credit check and instantly issues a virtual card
- Copy/paste the virtual card details to pay for your Chewy order
- Klarna charges your first installment immediately and bills the remaining 3 payments to your linked debit/credit card every 2 weeks
In theory, this virtual card flow should work with most online merchants, but some Chewy customers have reported mixed results. It‘s possible Chewy could block these transactions if they violate the terms of service, so proceed at your own risk.
Using Zip at Chewy
Another BNPL service that takes a similar virtual card approach is Zip (formerly Quadpay). By generating a one-time use "Pay in 4" card in the Zip app, shoppers can apply their installment plan to any online purchase without the merchant‘s participation. The process looks very similar to Klarna:
- Download the Zip app and apply for an account (soft credit check required)
- Browse Chewy and add items to your cart
- At checkout, open Zip and tap "Pay with Zip"
- Enter your Chewy cart total and confirm you want to split the cost into 4 payments
- Zip instantly creates a virtual Visa card that you copy/paste to complete your Chewy transaction
- Zip charges your first payment immediately and bills the remaining 3 installments to your linked card every 2 weeks
Like with the Klarna hack, using Zip virtual cards at Chewy seems to be hit or miss. Some shoppers have pulled it off successfully, while others had their transactions blocked. Since these unofficial workarounds go against Chewy‘s standard terms, the retailer has the right to disable them at any time.
Why Doesn‘t Chewy Offer Afterpay?
Given Chewy‘s mammoth size in the pet e-commerce space and the booming demand for BNPL among its core demographic, it may seem surprising that the retailer has yet to embrace Afterpay or Klarna. After all, competitors like Petco and PetSmart have recently rolled out direct BNPL partnerships and prominently market the option to customers. So what‘s the holdup?
While we can‘t know for sure without insider information, here are a few potential reasons Chewy has delayed jumping on the BNPL bandwagon:
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Strategic priorities. As a relatively young company still in growth mode, Chewy may be laser-focused on expanding its product selection, optimizing its supply chain, and acquiring new customers. Integrating a brand new payment system could be seen as a distraction from those core goals.
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Financial impact. Partnering with BNPL providers isn‘t free for merchants. Companies like Afterpay and Klarna typically charge retailers a 4-6% fee on each transaction they finance. For a low-margin business like Chewy, those costs could eat into profitability if not offset by increased sales. Chewy may be crunching the numbers to ensure BNPL makes financial sense.
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Risk concerns. While BNPL can drive higher conversions and average order values, it‘s not without risks for retailers. Customers who finance purchases they can‘t truly afford may be more likely to return items or default on payments. Chewy could be wary of taking on that additional risk exposure, especially in an uncertain economic climate.
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Waiting for winners. The BNPL landscape is highly competitive and fragmented, with dozens of VC-backed startups vying for market share. Rather than hedging its bets by partnering with multiple services, Chewy may be content to sit back and wait for the dust to settle. Once clear category winners emerge, the retailer can be more confident about which horse to back.
Despite the current lack of Afterpay and Klarna, all signs point to Chewy getting more serious about BNPL in the near future. During the company‘s Q3 2022 earnings call, CEO Sumit Singh hinted at new payment options on the horizon, noting that Chewy is "keenly focused" on removing friction for customers. CFO Mario Marte also acknowledged that Chewy‘s core demographic over-indexes for BNPL usage. As more retailers embrace the pay-over-time trend, the pressure will mount for Chewy to meet its customers where they are.
Chewy Competitors That Take BNPL
If using buy now, pay later at Chewy is a top priority, you may want to consider shopping with one of these pet supply retailers that have already jumped aboard the BNPL train:
| Retailer | BNPL Accepted |
|---|---|
| Petco | Klarna (in-store and online) |
| PetSmart | Afterpay (online only), Klarna (in-store only) |
| Walmart | Affirm (online and in-store) |
| Target | Affirm, Sezzle, Zip (online and in-store) |
Keep in mind that just because a retailer accepts BNPL doesn‘t necessarily mean you should use it. Financing pet supplies can be a slippery slope if not managed responsibly. Before leveraging BNPL for a big pet purchase, consider these tips to maximize value and minimize risk:
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Budget before you buy. Just because you can break that $500 dog bed into interest-free payments doesn‘t mean you should. Review your monthly cash flow and upcoming expenses to determine if the installments will fit comfortably or overstretch you.
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Stick to a schedule. The key to coming out ahead with BNPL is making all your payments on time. Avoid late fees and credit dings by setting reminders or enabling AutoPay. Be extra cautious if you‘re juggling multiple BNPL plans at once.
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Don‘t overbuy. It‘s easy to get carried away when the total cost is divided into bite-size chunks. Fight the temptation to spend more than you normally would just to hit installment thresholds. Focus on the essentials first.
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Compare options. If a pet supply retailer accepts multiple BNPL options, take time to compare the loan terms, fees, and credit implications. Don‘t just blindly select the default option at checkout.
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Know when to tap out. If you find yourself leaning on BNPL to cover basic pet needs every month, it may be time to reevaluate your budget and scale back. Using BNPL is a handy financial tool, but shouldn‘t become a crutch.
The Bottom Line
After thoroughly investigating the question of buy now, pay later at Chewy from all angles, it‘s clear there‘s no definitive answer just yet. As of 2023, the pet e-commerce giant does not have any official partnerships with Afterpay, Klarna, Affirm or other popular BNPL providers. However, crafty customers have discovered backdoor ways to apply flexible payment plans powered by Klarna and Zip virtual cards to their Chewy orders. Since this workaround goes against Chewy‘s terms of service, its long-term reliability is questionable.
Looking ahead, all signs point to Chewy getting on board the BNPL train sooner rather than later. Given the service‘s soaring adoption rates among Millennials and Gen Z, it‘s likely only a matter of time before Chewy follows the lead of competitors like Petco and PetSmart in accepting Afterpay, Klarna or another top dog in the space.
For now, Chewy shoppers who are keen on using BNPL have two options: Try their luck with the Klarna or Zip app hacks and hope the transactions don‘t get blocked, or temporarily take their business to another pet retailer with more reliable BNPL partnerships. Whichever route you choose, be sure to comparison shop, stick to a budget, and have a plan for paying off your pup‘s pampering on time. With a strategic approach, you can leverage the power of BNPL to spoil your fur babies without derailing your financial goals!
