Many retailers have partnered with buy now, pay later (BNPL) apps to make it easier for people to make purchases on their websites. These BNPL apps are similar to credit cards because they allow you to buy something today, then pay for it over time. One of the biggest differences, though, is that many do not charge any interest as long as you make the scheduled payments.
The BNPL apps are easy to use, have low fees and interest rates, and credit limits that allow for common purchases. To help readers find the best BNPL apps, we researched and reviewed top buy now, pay later services to find out which ones work best for a variety of consumers.
Best Overall : Affirm
Affirm is our choice for the best overall buy now, pay later app because it has no fees of any kind, not even a late fee. For transactions that do charge interest, Affirm charges simple interest, which means that your interest charges won't compound and grow larger.
No late fees
Make purchases online or in-store
Choose the payment schedule that works for you
Purchases up to $17,500
Some transactions charge interest
Requires a credit check
No physical credit card
Affirm is a publicly traded company that is located in San Francisco, California. It was founded in 2012 and has financed over 17 million purchases. Customers can borrow up to $17,500 and pay over time with interest rates at 0% or from 10% to 30%, depending on the retailer. Most loans are repaid in three, six, or 12 months without any additional fees, making this the best overall choice.
When you make a purchase with Affirm, you always know exactly what you're paying and when the payments will be done. Many retailers offer Affirm as a payment option when checking out. When it's not an option, you can still pay over time by creating a virtual credit card number online or through the Affirm mobile app to purchase in-store or online.
Read the full Affirm review.
Best for Flexible Payment Plans : Sezzle
Our choice for the buy now, pay later app with the best flexible payment plans is Sezzle. Sezzle sets itself apart by allowing customers to reschedule payments to give themselves up to two weeks of additional time.
Push payments up to two weeks later
First reschedule per order is free
Can reschedule subsequent payments for free at same time
No interest on purchase
Requires 25% down payment upon purchase
Additional payments aren't rescheduled if you don't select option
Each additional reschedule is $5
Sezzle is based in Minneapolis, Minnesota, and is a publicly traded company that operates in the U.S. and Canada. The company is a Certified B Corp., which means that it uses its profits and resources to support a public benefit. It has over 2.6 million active customers and its top 10% of its clients use the service an average of 49 times per year. There are now more than 34,000 active merchants on the platform where customers can buy now and pay later.
Like many BNPL apps, it requires a 25% payment immediately and three additional payments every two weeks. However, Sezzle allows customers to reschedule payments up to two weeks later, making it the leader for best for flexible payments. The first reschedule for each order is free, then each additional payment change for the same order is $5. You can even reschedule the remaining payments at the time of the first reschedule without incurring an additional fee.
Best for Students : Afterpay
- Credit limits start at $500
- Soft credit check, no minimum score
- Purchases are split into four equal payments
The best buy now, pay later app for students is Afterpay because it utilizes smart credit limits to ensure customers can afford to pay for purchases. Additionally, users of its credit card can split any eligible charge over $100 into four no-interest payments, which is helpful for students on a tight budget.
Smart credit limits help you stay under budget
Sends reminders so you don't miss a payment
No fees when you pay on time
Afterpay may decline your order
Late fees can be as high as 25% of order amount
Each purchase must be approved by Afterpay
Afterpay is an Australian company that operates in Australia, New Zealand, the U.K., Canada, and the U.S. It launched in Australia in 2015 and now has over 14.6 million customers from around the world. It works with over 85,000 brands, so customers have many choices for shopping.
Browse participating stores online or in person to make purchases with no fees or interest, as long as you make all scheduled payments. Each purchase you attempt to make is subject to an instant approval decision using smart credit limits, which is why it is great for students with limited financial resources.
To shop in-store, log into your account via the Afterpay mobile app, then add the virtual card number to your mobile wallet and tap to pay. You'll make the first of four equal payments immediately, then each of the remaining three payments every two weeks. As long as your purchase is approved, your order will ship as usual. If a payment is late, you'll be charged up to 25% of your original order amount, with a maximum fee of $8.
Read the full Afterpay review.
Best for No Credit Check : Splitit
Splitit is our choice for the best BNPL app with no credit check. Instead of issuing you more credit, Splitit uses your existing Visa and Mastercard credit cards to make purchases.
No applications, credit checks, or registration required
Uses your existing credit card limits
Highest transaction approval rating
You must have a credit card with available credit
Does not build credit
Not available with Amex or Discover cards
Splitit is a publicly traded company based in New York City. It was founded in 2012 and has partnered with Visa, Mastercard, Google, Stripe, and more to expand its offerings. With Splitit, customers can continue to use their Visa or Mastercard credit cards to earn rewards on their purchases and pay over time with no interest. Splitit does not charge consumers any interest or fees, including late fees.
Simply select Splitit at checkout, choose how many installments they'll make to pay off the balance, and enter their credit card information—there is no credit check. Splitit does not require an application or registration to use their service. There is no interest charged and no fees as long as you make your payments on time.
When making a purchase, your available credit is reduced by the total purchase amount as a pending transaction on your credit card. Each time a payment is due, the payment will be charged to your card and the pending amount will be reduced by the same amount. The process repeats until all payments are made.
Best for Bad Credit : Perpay
The winner of the best BNPL app for those with bad credit is Perpay because it does not check credit history and uses your verified income to set your spending limits.
Does not check credit history
Spending limit based on current income
Spreads payments over a six month period
Spending is limited to Perpay's marketplace
Items are not shipped until first payment is made
All scheduled payments must be made through payroll direct deposit
Perpay was founded in 2016 and is currently located in Philadelphia, Pennsylvania. With over three million members, Perpay was named the fifth-fastest-growing private company by Inc. Magazine in 2019. Customers are able to shop from over 1,000 of the top brands through the Perpay marketplace. With on-time payments, the average customer increases their credit score by 39 points, giving it the edge for consumers with bad credit trying to repair it.
After completing your Perpay profile, customers can access their spending limit and start shopping within 60 seconds of joining. Your items are not shipped until your first payment is made, which is typically your next payday. Instead of the typical four payments of 25% each that other BNPL services utilize, Perpay splits new users' purchases into equal installments across six months, according to your pay schedule. For example, if you receive a paycheck twice a month, you'd make 12 equal payments across six months.
Required payments are made through direct deposit from your payroll. Other forms of payment are not accepted unless you are making extra payments. Perpay helps customers build credit by reporting your positive payment history to the credit bureaus after completing four months of on-time payments with a combined total of at least $200.
Best for Small Purchases : PayPal Pay in 4
PayPal Pay in 4 is our choice for the best small purchases buy now, pay later app because it focuses on transactions of $30 to $600.
PayPal is a familiar brand name
Can use at millions of online merchants
Maximum purchase of $600
Not available in all 50 states
Each purchase requires an approval decision
PayPal is one of the original online payment processing platforms for person-to-person payments. It has been expanding to in-store and online purchases for years and is now one of the most recognized payment options among consumers. Pay in 4 is available at millions of online merchants, such as Coach, Best Buy, and Vineyard Vines for transactions ranging from $30 to $600, making it our choice for small purchases.
To use Pay in 4, you must have a PayPal account in good standing, or open one at the time of purchase, that is linked to your bank or credit card account. During checkout, select Pay in 4 when you check out with PayPal to receive an approval decision within seconds.
You'll pay a down payment at the time of purchase and three subsequent payments every 15 days thereafter. Pay in 4 is not currently available to residents of New Mexico, North Dakota, South Dakota, Missouri, Wisconsin, or any U.S. territories.
Best for Large Purchases : Klarna
Klarna is our choice for the best buy now, pay later app for large purchases because it offers up to 36 months of financing and its virtual card numbers can be used at any online or in-person retailer.
Can be used wherever credit cards are accepted
One-time use card numbers provide enhanced security
No interest or fees when payments made on time
Earn rewards with its Vibe loyalty program
Each purchase must be approved by Klarna
Requires credit check for other financing options
Klarna was founded in 2005 in Sweden. It has since expanded within Europe and to the U.S. and boasts over 90 million active customers and 250,000 merchants across 17 countries. However, you can now use Klarna to turn any purchase into smaller payments at every store that accepts credit cards. Klarna does not impact your credit when using the pay in 4 option.
During checkout, create a virtual card in the Klarna app and use that number to complete your purchase. You'll pay off your purchase in four equal payments; the first is due immediately and the remaining three will be paid every two weeks.
Klarna does not charge interest or fees as long as you make all of your scheduled payments on time. Customers also have the option to pay the balance in full within 30 days with no interest or use six- to 36-month financing to handle larger purchases helping it win this category.
Read the full Klarna review.
Final Verdict: Best Buy Now, Pay Later
Buy now, pay later apps are gaining in popularity among consumers. They can offer interest-free financing and simplified repayment structures to keep people from getting into financial trouble. Our choice for the best buy now, pay later app is Affirm. Affirm does not charge any fees, including the pesky late fees that most competitors charge. You can make payments online or in-store and choose the payment structure that works best for your finances.
Compare the Best Buy Now, Pay Later Apps
|Company||Number of Installments||Interest Rate||Amount Due at Purchase||Late Fees||Popular Brands|
|Varies||0%; 10% to 30%||Varies||None||Walmart.com, Peloton, Expedia, Pottery Barn|
Best for Flexible Payment Plans
|4||0%||25%||$10||Umbro, GameStop, Altitude Sports, Public Rec|
Best for Students
|4||0%||25%||$10||Old Navy, Bed Bath & Beyond, Forever 21, adidas|
Best for No Credit Check
|3 to 24||0%||Varies||None||Echelon Fitness, GlassesUSA, REST, Instasmile|
Best for Bad Credit
|Varies||0%||Varies||None||Samsung, Apple, Beats, Nintendo, Michael Kors|
|PayPal Pay in 4
Best for Small Purchases
|4||0%||25%||Varies by state of residency||Fossil, Bed Bath & Beyond, Lands' End, ALDO|
Best for Large Purchases
|Up to 36 months||0% to 29.99%||Varies||First attempt is $0; Second attempt is $7||Sephora, Bed Bath & Beyond, Nike, Tommy Hilfiger|
How to Choose the Best Buy Now, Pay Later App
There are many BNPL apps to choose from when buying goods and services. However, most retailers partner with just one BNPL app, so their partner may be the easiest service to work with to complete your purchase.
Assuming that you have a choice of which service to use, here's how to choose the best buy now, pay later app for your purchase.
- Consider your credit score. If you have bad credit or a thin credit history, it may make sense to select a BNPL app that does not check your credit score.
- Will it report to the credit bureaus? People who are working on their credit will benefit from their on-time payments if the BNPL app reports their activity to the major credit bureaus.
- Where is the BNPL app accepted? When you are applying for a BNPL account, choosing one that is accepted at many of the stores you shop at will keep you from opening multiple accounts.
- How much of a credit limit will you receive? The credit limits of BNPL apps vary from company to company. Depending on the size of your purchase, having a larger credit limit may make the difference between being able to complete your transaction or not.
- What are the fees and interest rates charged? Review the account details to determine if there are any fees for using the service, making a payment, or other activities. Also, will you be charged interest if you make your payments on time? If so, what are the rates?
When to Use a Buy Now, Pay Later App vs. a Credit Card
While buy now, pay later apps are similar to credit cards, they each have a role to play for today's consumers. During checkout, you'll have to decide which method you want to use to complete your transaction. Here are a few situations where you'd want to use one form of payment over the other.
When to use a BNPL app:
- Make purchases without a credit inquiry
- Simple application with instant decision for new credit
- Pay over time without being charged interest
- Pay off purchases with minimum payments
- Build credit without getting a secured credit card
When to use a credit card:
- Special discounts for using a store-branded retail card
- Earn cash back, miles, or points on your purchase
- Meet a minimum spend requirement to earn a welcome bonus
- Earn benefits based on your annual spending totals
- Price, return, and purchase protection benefits
- Receive a complimentary extended warranty
- Flexibility of lower minimum payments
Not all credit cards provide these benefits, so review your credit card's benefits guide or call customer service to verify if your card does. Otherwise, it might be time to replace your credit card with one that offers better benefits.
Frequently Asked Questions (FAQs)
How Do Buy Now, Pay Later Apps Work?
BNPL apps work in coordination with the merchant that you are purchasing from. Most do not charge interest as long as you make the scheduled payments on time. If you miss a payment, you may be charged interest and a late fee. The BNPL app earns a fee from the merchant for processing the transaction, similar to how a credit card transaction works. It's a win-win situation because the customer receives their product today, the merchant makes a sale that might not otherwise have happened, and the BNPL app earns a fee for handling the financing.
Can Buy Now, Pay Later Apps Help You Build Credit?
If your BNPL app reports to credit bureaus, then your positive payment history will help build your credit score. For example, Perpay customers increase their credit score by an average of 39 points. However, many of these BNPL loans are short-term in nature and, therefore, don't create a payment history that is long enough to report to the credit bureaus.
What Credit Score Do You Need to Use a Buy Now, Pay Later Service?
There is no set credit score required to use a BNPL app. There are many BNPL apps to choose from. While some perform a soft inquiry to check your credit, many others do not require a credit check at all. Even if you have bad credit, services that do not require a credit check enable you to shop today and pay over time by using alternative methods to determine your credit limit.
For example, Zebit has a two-step underwriting process. First, they verify your identity, income, and employment to establish your initial spending limit. Then, each attempted purchase is underwritten at checkout to determine whether or not you can complete the transaction.
To find the best buy now, pay later apps, we researched over 20 BNPL services to find those that work best for a variety of shopping goals. For our analysis, we compared ease of purchasing, interest rates, fees, credit checks, how payments are handled, and other relevant features. These data points were assigned a score and weighted based on their importance to each type of consumer. We continuously monitor data from BNPL services to update our rankings to provide our readers accurate recommendations.