The Best Buy Now, Pay Later Apps of 2024
Buy now, pay later (BNPL) is short-term financing that lets you buy an item now while paying it off over time in smaller payments. Most major retailers offer BNPL options at checkout or accept payment through the app. It’s a legitimate—and usually free—way to pay for purchases over several weeks.
Retailers partner with different buy now, pay later apps. Each app has unique eligibility criteria, payment plans, late fees, and benefits. Because retailers often have exclusive partnerships, you can’t always choose which app to use. But it’s helpful to understand the differences so you can find the best one.
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What is buy now, pay later?
Buy now, pay later is a type of short-term financing that allows consumers to make purchases and split the cost into smaller, manageable installments, typically over a few weeks or months.
These payments are often interest-free as long as they are completed within the specified time frame. BNPL services are commonly offered at checkout by retailers both online and in-store, giving customers immediate access to goods without requiring full payment upfront.
Unlike traditional credit options, BNPL doesn’t always require a credit check, making it accessible to a wider range of shoppers. However, missed payments can lead to fees and, in some cases, interest charges.
BNPL has become a popular, convenient, and flexible alternative to credit cards, particularly for budget-conscious consumers.
How does buy now, pay later work?
Buy now, pay later financing is a type of personal loan that is often cheaper than other financing options. Most BNPL companies offer different repayment options, including four interest-free payments due every two weeks. The plan you select affects the due date and payment amount.
For example, let’s imagine you’re buying a new winter jacket. The purchase is an investment, and you expect to spend $400. You find the perfect coat at an online retailer. The store partners with a BNPL company and allows you to pay in four installments of $100. The first payment of $100 is due at checkout. You still owe $300, and the remaining payments of $100 are due every two weeks.
After checking your bank account, you decide you don’t want to pay at checkout. You select a different option from the BNPL company and choose to pay in 30 days. You owe $0 at checkout and have up to 30 days to pay the entire balance of $400. If you need more time, you can extend repayment for a fee.
What to consider before using a BNPL app
Ask yourself the following: How will this affect my budget? (Make sure not to overspend and that the repayment terms fit your budget.) Will this affect my credit score, and for how long? Do your research to understand the fees and interest rates. Make sure the purchase is more of a need than a want, and consider alternatives with lower interest rates (such as traditional lending or savings if available).
The best buy now, pay later apps
Some buy now, pay later companies appear as a payment option when you check out from a store. You can also sign up for a BNPL app ahead of time and use it as your payment method when you shop.
Here are the top BNPL apps to consider.
Klarna
Why we recommend it
Klarna partners with major retailers, including Amazon, Walmart, Target, eBay, and Sephora, to offer financing. Because it’s available at most stores, Klarna is a solid option for regular shoppers who want to use a buy now, pay later app.
Klarna’s accessible qualification requirements and small loan amounts make it easy for new users to start without overspending. The company performs a soft credit check when you request financing, which doesn’t affect your credit score. Plus, you won’t pay any fees or interest charges unless you extend your repayment past 30 days.
How BNPL works through Klarna
Klarna offers three repayment options:
- Pay in four interest-free installments
- Pay in 30 days
- Pay over time
If you choose four installments, the first payment is due at checkout, and the remaining payments are due every two weeks. If you opt to pay in 30 days, the full balance is due then, with nothing is due at checkout.
The pay-over-time option is similar to a credit card repayment plan. You can repay the purchase for up to 36 months, but fees and interest charges apply.
Sezzle
Why we recommend it
Sezzle is similar to other BNPL apps and offers the standard features—interest-free payments, no fees, and quick checkout. However, the company stands out by offering an in-app purchase experience you can use at most stores.
Sezzle is similar to a digital card you can scan to pay, making it useful for in-person shoppers. The app allows you to pay in-store at large retailers, including T.J. Maxx, Ulta, and Lowe’s.
The company performs a soft credit check when you select Sezzle Pay in 4 or Pay in 2, but it doesn’t affect your score. The only time Sezzle performs hard credit checks is when you want to pay monthly and extend repayment.
How BNPL works through Sezzle
You can choose Pay in 2, Pay in 4, or Pay monthly. With the first two options, you won’t pay any interest or fees as long as you pay according to the schedule. The first payment is due at checkout, and the following payments are due every two weeks.
Sezzle’s pay monthly option offers long-term financing, allowing you to make payments for up to 48 months. You must meet the approval criteria, which involves a hard credit check. Rates are between 5.99% and 34.99% APR.
Affirm
Why we recommend it
Affirm offers one of the highest financing limits, $30,000, with a $10,000 down payment. If you’re making a large purchase and want to spread repayment over a few weeks, Affirm is the best option.
Affirm is the only BNPL company that partners with Apple Pay. This means you can use Affirm on your smartphone and make payments at almost any retailer. The partnership makes the buy now, pay later app more accessible to new users and people who don’t want to complete an additional sign-up process.
How BNPL works through Affirm
Affirm keeps it simple with two repayment options: Pay in 4 or monthly installments. With Pay in 4, payments are due every two weeks, and if you select installments, they’re due monthly. The company is transparent about interest and fees, which is notable since other BNPL apps make it harder to find the information. You won’t pay any fees, but you might need to pay interest—0% to 36% APR—if you choose monthly installments.
Afterpay
Why we recommend it
As one of the best-known BNPL apps, Afterpay is an accessible option, especially for shoppers using BNPL for the first time.
Many retailers, including Belk, Lululemon, and Ivory Ella, accept Afterpay. For $9.99, you can upgrade to Afterpay Plus, which allows you to use the app at additional places.
The company offers small spending limits that grow over time and payment reminders before the due date to help shoppers avoid overspending. Plus, Afterpay doesn’t perform hard credit checks and won’t report missed payments to the credit bureaus.
How BNPL works through Afterpay
Affirm offers two payment plans: pay in four or monthly. If you choose to pay in four, payments are due every two weeks, with the first due at checkout.
The monthly option offers repayment terms of six or 12 months, and it’s only available for purchases over $400. You won’t pay any setup fees, but the APR ranges from 6.99% to 35.99%.
What types of purchases can you use buy now, pay later for?
You can use buy now, pay later apps for almost every type of retail purchase, including airfare and travel. Even if you don’t see buy now, pay later as an option at checkout, you can typically pay using the app.
Shoppers often use BNPL for the following purchases.
- Furniture
- Clothing
- Hotels
- Shoes
- Flights
- Laptops
- Cellphones
- Concert tickets
- Gift cards
- Groceries
- Electronics
Most BNPL apps don’t allow users to buy drugs, weapons, or cryptocurrency. You also can’t use the apps for cash advances or loan and credit card payments.
Pros and cons of buy now, pay later
Buy now, pay later apps offer a solid way to pay off larger purchases over time, but BNPL apps aren’t the right fit for everyone.
Pros
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0% financing
BNPL apps might seem similar to a deferred interest loan, but a significant difference is that you don’t need to pay interest. As long as you make installments, BNPL apps are free to use. You’ll only pay interest if you choose an extended repayment option, usually more than 30 days.
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No hard credit check
Most BNPL apps don’t perform hard credit checks for short-term installment payments, making it accessible for shoppers who can’t qualify for other types of borrowing.
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Pay over time
The apps allow you to spread payments over time, making it easier to afford purchases.
Cons
-
Short repayment terms
You must select a shorter repayment term—such as four payments over six weeks—to avoid interest charges. As a result, the payments are larger.
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Fees and interest
If you miss a payment or need more time to repay the purchase, you’ll pay late fees and interest.
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Easy to overspend
It’s difficult to track exactly how much you’re paying, and the balance can add up fast, especially if you’re using multiple apps at once.
How BNPL apps can affect your financial health
If used responsibly, these apps can help with your credit history, and cash flow management, and allow you to buy items you would like (even “wants,” not just needs) and pay over time. However, if you don’t abide by the repayment terms or fall into an unforeseen financial hardship, this debt could lead you into further financial strain and financial instability, along with missed or late payments, lowering your credit score.
How to buy now, pay later
Most buy now, pay later apps offer two ways to make a purchase: during checkout or within the app. Here’s how the process works for each.
Use BNPL during checkout
Retailers partner with BNPL apps to offer integrated payment at checkout. It’s most common to see this as an option online.
You must complete the following steps when you use BNPL during checkout.
- Select BNPL as payment: The BNPL company will appear as a payment option at checkout, and you must select it.
- Create an account or log in: Most BNPL apps require users to create an account or log in.
- Choose your payment plan: Most apps offer the option to pay in four installments or monthly. Choose the one that works best for you.
Use BNPL within the app
BNPL companies also allow users to make purchases using the app. It’s the most common way to use BNPL for in-person transactions. Most companies require users to complete the following steps.
- Download the app: Download the BNPL app to your phone.
- Create an account: You’ll provide personal information—often your name, age, and address.
- Add to virtual wallet: Most apps allow you to add your BNPL payment method as a card to your virtual wallet, making it easier to pay in person.
- Create a purchase request: Before you can shop, you must create a purchase request for the amount you plan to spend, including shipping and tax.
How BNPL apps compare to other credit-building tools
BNPL apps can help build and improve credit as long as you follow the terms. However, you risk a negative impact if payments are missed or late. The other options you can consider (which will depend on whether you qualify) are credit builder loans, secured credit cards, regular credit cards, and potentially being added to another person’s (such as a spouse or parent) credit card as an authorized user. These all carry the same risks, so it depends on what you qualify for and whether you have a relationship with an individual willing to take the risk of adding an authorized user.
FAQ
What’s the difference between BNPL and point-of-sale loans?
BNPL services typically allow consumers to split a purchase into several smaller payments, often without interest if paid off in time. BNPL is designed to be quick and easy to use at the time of checkout.
Point-of-sale loans can be more formal financing agreements offered at the point of sale. They often involve interest rates and longer repayment terms. Point-of-sale loans often require a credit check and may function more like traditional loans.
What’s the difference between BNPL apps and cash advance apps?
BNPL apps focus on specific purchases, allowing consumers to spread out payments over a set period without paying the full price upfront. Cash advance apps provide users with access to cash, often borrowed against a paycheck, and are more like short-term loans with fees or interest attached.
While BNPL breaks down payments for goods or services, cash advances give you immediate access to funds you can spend anywhere.
What stores offer buy now, pay later?
Many major retailers offer BNPL options at checkout, either through partnerships with BNPL services or their own programs. Examples include:
- Walmart: Offers BNPL through Affirm and Zip.
- Lowe’s: Offers BNPL through Affirm and Klarna.
- Amazon: Provides BNPL options with Affirm, allowing customers to split purchases into installments.
- Apple: Offers BNPL through Apple Pay Later and Affirm, which allows customers to finance Apple products.
Can you make a buy now, pay later purchase with no credit check?
Some BNPL providers offer no-credit-check options, especially for smaller purchases. Many companies don’t perform credit checks, making it easier for customers to get approved. However, some BNPL services may perform a soft credit check, which won’t affect your credit score.
Are you guaranteed approval for BNPL?
While BNPL services are often easier to get approved for than traditional credit options, approval is not guaranteed. Approval depends on the amount of the purchase, your payment history with the provider, and, in some cases, your credit score.
Can you do buy now, pay later with bad credit?
Yes, some BNPL providers approve users with bad credit or no credit history. For example, Afterpay and Sezzle don’t rely heavily on credit scores; instead, they focus on your payment history with the platform. However, Affirm may check your credit, which could affect your approval chances if you have a poor credit score.
Can you get buy now, pay later with no down payment?
Many BNPL services require no down payment at all, allowing you to split the total purchase price into installments, starting with the first payment. However, some providers or retailers may ask for an initial down payment depending on the item or its cost.
How does buy now, pay later make money?
BNPL providers make money primarily through merchant fees, which retailers pay to offer the service at checkout. They may charge late fees for missed payments and, in some cases, interest on longer-term payment plans. These revenue streams allow BNPL companies to offer interest-free options to customers while making a profit.
Where can I use Cash App to buy now, pay later?
Cash App recently introduced a BNPL feature in partnership with Afterpay, which allows you to use Afterpay for purchases at participating retailers. To use Cash App for BNPL, look for retailers that accept Afterpay as a payment method, such as Urban Outfitters, Lululemon, and Old Navy.
How does PayPal work?
PayPal’s BNPL option, Pay in 4, allows customers to split their purchase into four equal payments. The first payment is due at the time of purchase, and the remaining three are spread over six weeks. PayPal in 4 doesn’t charge interest or fees as long as you make the payments on time, and it is available at retailers that accept PayPal.
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