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Nearly half of Americans in Gen Z (ages 18-27) and millennials (ages 28-43) (51% and 55%, respectively) use at least one buy now, pay later (BNPL) app, according to Bankrate’s Buy Now, Pay Later survey, and Apple Pay Later was expected to join the market earlier this year.
Like other BNPL apps, the app allowed consumers to split purchases from participating retailers into four equal installments, and it also reported loan details, including repayment history, to credit bureaus.
However, Apple discontinued this feature in June. Since this feature is no longer available, we’ll look at some reliable alternatives instead.
Alternatives to deferred payment applications
If you were a fan of the Apple Pay Later feature, you might be disappointed to see it go. The good news is that there are BNPL alternatives worth considering: Sezzle, PayPal, and Affirm give you more control over your purchases.
| Sezzle | PayPal | Assert | |
|---|---|---|---|
| Bankrate Score | 5.0 | 4.7 | 4.6 |
| Loan amount | $10-15,000 | $30-10,000 | From $50 |
| April | 0%-34.99% | 0%-35.99% | 0%-36% |
| Length of Term | 2 weeks to 48 months | 6 weeks to 24 months | 6 weeks to 48 months |
| Fee |
| Not applicable | Not applicable |
Sezzle
Sezzle is a BNPL app that lets you pay for your in-store or online purchases at participating merchants in instalments. With the 2 instalment option, you pay half the amount at the time of purchase and the remaining half two weeks later. With the 4 instalment option, you pay your purchase in 4 equal installments over 6 weeks. In either case, you won’t be charged interest.
You can also opt for a monthly installment plan, which allows you to repay Sezzle over a period of up to 48 months. With this plan, you will pay interest ranging from 5.99 percent to 34.99 percent, although some borrowers qualify for a 0 percent APR.
Sezzle is a good alternative to Apply Pay Later as it offers similar repayment options. If you can split the payment into two or four installments, you can avoid interest and qualify for a higher loan limit of $2,500. If you choose monthly installments, the maximum loanable amount is a higher $15,000.
PayPal
PayPal also offers the option to buy now and pay later with its Pay in 4 and Pay Monthly plans. Pay in 4 is available for purchases ranging from $30 to $1,500. Like other BNPL apps, you’ll need to make a down payment at the time of purchase, followed by three interest-free payments.
If you need more buying power, Pay Monthly plans can support purchases from $199 up to $10,000, with repayment terms up to 24 months and APRs ranging from 9.95 percent to 35.99 percent on the loan amount.
Unfortunately, PayPal isn’t as flexible as Sezzle when it comes to maximum loan amounts and terms, but you still won’t be charged interest if you pay off your balance within six weeks, and you still get PayPal’s purchase protection.
Assert
Affirm is another BNPL option that offers two payment plans. You can choose between four equal payments or opt for monthly installments. Like other Apply Pay Later alternatives, you can split your purchases into biweekly payments and avoid paying interest. Some borrowers may require a down payment, but it’s possible to get a $0 down payment if you qualify.
The monthly installment payment option is available on purchases up to $5,000 for terms ranging from three to 60 months. A soft credit check is required to qualify for this plan, and the maximum APR is 36 percent.
Depending on your credit profile, you may be able to borrow more with Sezzle or PayPal. Still, Affirm is worth mentioning, mainly because it lets you avoid the pesky late payment and refund penalties found with many other BNPL apps.
Why did Apple Pay stop offering BLPN services?
Apple stopped offering its BNPL service around June this year, but did not disclose a specific reason for halting the program. If you already have a BNPL loan with Apple, you can access and manage your details through Apple Wallet.
However, 9to5Mac reports that Apple will be offering installment loans in the near future. While there are no details on what they might look like, Apple’s installment loans will likely be available through debit cards, credit cards, and lenders.
