Top 6 Buy Now, Pay Later Apps Of 2024

Many retailers partner with pay later providers to give consumers the option to repay for items in equal installments (often with 0% interest) rather than paying for them all at once. These apps allow you to apply at the point of sale and, if approved, select your repayment option to complete the purchase.

BNPL plans are a great financial tool to help you budget for big expenses for which you don’t have enough cash, but they also make it easier to buy things you don’t need, which could hurt your financial situation in the long run.

Best buy now pay later apps

Affirm: The best option for easy buy now and pay later

Affirm is a buy now, pay later option that offers fast approval online or in person for purchases as low as $50. It’s available at more than 102,000 retailers nationwide and offers four interest-free installment plans. Longer repayment terms are available for larger items, but interest rates can be as high as 36 percent depending on your credit.

Strong Points

• Accessible online or via mobile app (for in-person purchases)
• No interest on purchases made with Affirm Pay in 4
• Build credit with monthly payment options
• No late fees

Cons

• Only one interest-free repayment is possible
• Purchases with extended monthly payment options may incur interest
• High number of complaints to the CFPB
• Paying with Affirm Pay in 4 doesn’t help build credit

Afterpay: No minimum loan amount

Afterpay is a buy now, pay later app that doesn’t advertise a minimum payment. It’s great if you need a little more time to pay for small purchases. You pay in four interest-free installments over six weeks. You can use this plan for online purchases or when buying at participating retailers using your virtual card.

Afterpay also offers a rewards program where you get rewards if you pay off one of its installment plans in full. For purchases over $400, you can choose a 12-month repayment schedule, but you’ll pay interest rates of up to 35.99 percent based on your credit profile.

Strong Points

• No interest on 6 week purchases
• A soft pull when opening an account won’t hurt your credit
• Shop online or in store
• Shop with Afterpay and earn rewards when you pay on time

Cons

• Late fees of up to 25% of the purchase price
• Customer service by phone is not available
• Only one interest-free plan is offered
• On-time payments aren’t reported to the credit bureaus, so they don’t help you build credit.

Klarna: Best for Multiple Payment Options

Klarna offers interest-free 30-day and four-payment installments options, giving you more flexibility in arranging your purchase payments than other buy-now, pay-later plans reviewed by Bankrate. You can also choose a 24-month repayment term, but you’ll need to qualify and pay interest based on your credit profile.

Klarna works with 500,000 retailers, and the company doesn’t impose price limits on its payment options (PayPal’s limit is $1,500), which may allow for larger purchases.

Strong Points

• More interest-free options than other buy now, pay later apps
• Rewards program gives you discounts on your purchases
• 24/7 chat customer support available

Cons

• Late fees for failing to make scheduled payments
• No-interest options don’t help build credit
• Very little information is publicly available about long-term option interest rates.

PayPal 4-time payment: Best for a wide range of stores and products

PayPay Pay in 4 allows you to split purchases from $30 to $1,500 to make them more affordable. All merchants that offer PayPal can offer this option, giving you access to more products that can be paid for using the Pay in 4 program.

The first payment is due at the point of sale, and the remaining three are due every two weeks. This payment option has no sign-up fees, no interest, and no late payment penalties. If you need more time and don’t mind paying interest rates ranging from 9.99 percent to 35.99 percent, the monthly payment option lets you spread your payments over 6, 12, or 24 months.

Strong Points

• No interest or late fees on purchases
• Available at millions of online retailers
• No strict credit check required
• Includes purchase protection to keep your information safe

Cons

• Only available in some states
• Not valid for in-store purchases
• Purchase limit is $1,500

Sezzle: Interest-free plan perfect for small purchases

Sezzle is the only “buy now, pay later” app we reviewed that offers a two-week repayment period with a purchase price as low as $10. If that doesn’t fit your budget, you can choose the standard four-payment six-week option offered by other BNPL apps. If you need more time, you can choose a 48-month term, assuming you qualify for the APR offered based on your credit score.

Strong Points

• Two interest-free payment options
• Increased instant purchasing power with each completed plan
• Long-term options as low as 5.99%

Cons

• 25 percent down payment required
• You may have to pay a monthly fee to access big-name brands
• There is little information on how initial purchasing power is determined.

Zip: Great for simple buy now, pay later plans

Zip offers just one four-payment plan that lets you split payments over six weeks. If you’re short on cash and need to fill up on gas or buy groceries, Zip’s $7.50 fee is far cheaper than the sky-high APRs you’d pay with a payday loan. No other option helps you avoid the temptation to spread small expenses over a longer period of time, which can get more costly over time.

Strong Points

• Easy to understand plan
• Flexibility in payment terms
• Available at most stores that accept VISA
• Highly rated app based on 500,000+ App Store reviews

Cons

• There is only one way to pay
• Split fees up to $7.50 per order
• Late fees range from $5 to $10
• Virtual cards are valid for 14 days

Pros and cons of buy now, pay later apps

According to Bankrate’s Buy Now, Pay Later survey, more than one-third (39%) of U.S. adults have used at least one BNPL service. Most users (50%) said they chose a BNPL plan to pay in installments or spread out their cash flow. Unfortunately, the same survey revealed that more than half of users (56%) have experienced at least one issue with a BNPL service, from overspending to missing a payment.

Evaluating the advantages and disadvantages can help you determine if this type of payment plan best suits your current budget and long-term financial goals.

Strong Points

There are two main reasons why consumers choose buy now, pay later plans.

• This will help you manage your monthly cash flow. With inflation outpacing payroll increases, Americans may be wary of paying for purchases all at once with cash. Spreading out purchases over six weeks can help keep more money in your account until payday.
• There is no interest charged. Unlike credit cards, you don’t have to pay interest or risk your credit score dropping if you can’t pay off the balance right away, and approval can be easier than for credit cards or personal loans, since your credit score isn’t taken into account in most cases.

Cons

Despite their streamlined application process and easy-to-understand payment plans, these apps have their drawbacks.

• You’re more likely to overspend: Buy now, pay later plans can blur the line between what you need and what you want, so keep two things in mind: the potential to strain your budget and the risk of making a purchase you may regret later.
• Returning a product is more complicated: If you return an item purchased through a BNPL plan, you have to jump through a few more hoops to get a refund because you haven’t paid the retailer directly. To complicate things further, each BNPL company has a different process and timeline for refunds.

How to compare apps

When evaluating buy now, pay later apps to find the best option for you, consider the following factors:

• availability: Find out if the app can be used both online and in-store, or is limited to one or the other, and whether it can be used at the retailers where you shop.
• Purchasing power: Find out whether the BNPL company you’re considering has spending limits, and if so, whether your spending power increases over time.
• Subscription and transaction fees: Some apps require a subscription fee if you shop with certain brands. Consider whether the app is worth the extra cost, and ask about any late fees.
• Credit Reporting: Check to see if any late or on-time payments have been reported to the major credit reporting agencies.
• interest rate: If you choose a longer repayment term, check the interest rate against similar apps and other financing options.
• Repayment Terms: Some BNPL plans have multiple plans, so consider your budget and choose the best plan that fits your budget.
• Refund Policy: The time it takes to return something, how quickly your purchasing power is refunded, and the return process may influence whether you choose to use a particular BNPL company.

When to use buy now, pay later apps

The best times to take advantage of a buy now, pay later plan are when you need to cover the cost of essentials without emptying your checking account. This could include back-to-school shopping for a growing child, new winter tires, or buying a new microwave because your current one is starting to break down from overuse.

Here are some cases where “buy now, pay later” makes sense:

• I don’t have the cash to pay the full amount at this time. If you have a low emergency fund or just need a few extra weeks to make purchases before your next payday, BNPL can help.
• How to avoid using your credit card: The average interest rate on a credit card is over 20 percent, and using it up to your limit can have a negative impact on your credit score. Most BNPL plans are interest-free and let you pay for your purchases over six weeks.
• You may not qualify for low-interest credit cards or personal loans: Because these plans are generally for small purchases, qualifying for them is much easier than a personal loan or credit card.

Buy now, pay later app alternatives

Be sure to explore other borrowing options before settling on a pay later app. Here are a few that are worth a look:

• Personal Loans: This installment loan product offers longer repayment terms and potentially more affordable monthly payments. The best personal loan interest rates apply to those with good credit scores and start at as low as 8 percent. However, if your credit score is in trouble, you could pay as much as 36 percent.
• 0% Interest Credit Card: During the promotional APR period (usually 12 to 24 months), you can use a 0 percent APR credit card to make purchases interest-free, but be sure to pay the balance in full before it expires or you’ll end up paying interest on the balance.

Conclusion

Buy now, pay later plans can help ease financial stress when you need to buy but don’t have the cash on hand to pay the full amount all at once. The application process is often seamless, and if you’re approved, you can start buying right away.

To get the best deal, compare your options before deciding which app to use. Consider whether it’s something you need to buy, something you want but can do without, or whether financing alternatives like a personal loan or a zero-interest credit card would be a better fit.

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