7 Best Buy Now, Pay Later Apps of 2024

These can work out really well and give you more freedom when shopping online and, in some cases, in-store. It’s an option that many consumers are now opting for.

According to a report, the share of eCommerce done in North America through buy now, pay later (BNPL) was 1.6% in 2020.

Suffice it to say, it’s becoming a popular way for consumers to pay for things online.

Now, if you are considering buying something and want the option to split the cost of the purchase, then you may be wondering what your options are.

Read on to find out…

What Are Buy Now, Pay Later Apps?

BNPL is a type of short-term financing that allows consumers to make purchases and pay for them at a future date. Sometimes BNPL is referred to as a “point of sale installment loan.”

Typically, the consumer pays the first installment immediately, often known as a down payment, and then pays the rest of the cost in installments over time.

BNPL plans are often interest-free and are usually easier to get approved for than traditional lines of credit. While BNPL plans don’t usually affect your credit score, late payments or failing to pay can negatively impact it.

Top Buy Now, Pay Later Apps

If you are looking to split the cost of a purchase into installments, try these BNPL apps:

1. Sezzle

• App available for: Android & iOS
• Sezzle rating & reviews (Google Play): 4.8-stars and 27,000 reviews
• Sezzle rating & reviews (Apple Store): 4.9-stars and 67,700 reviews

First on the list we have Sezzle. This is one of the most popular buy now, pay later apps, with thousands of reviews and an almost 5-star rating on both the Google Play store and the App Store.

Sezzle is a digital payment platform that allows you to shop at thousands of stores, receive your order right away, and pay for it over 6 weeks. And, it’s completely interest-free.

The Sezzle app allows you to:

• Discover new stores
• Manage existing orders
• Reschedule future payments
• Change your payment methods
• Get notifications ahead of your next payment

Key points about Sezzle:

• There’s no impact on your credit. Sezzle only runs a soft credit check, so it won’t negatively impact your credit score.
• Split your purchases into 4 payments at 0% interest over 6 weeks.
• Discover more than 44,000 brands that offer the latest trends in fashion, home goods, beauty, and more.
• Down payment needed. In most cases, it’s 25% of the order total due upfront.

2. Klarna

• App available for: Android & iOS
• Klarna rating & reviews (Google Play): 4.6-stars and 358,900 reviews
• Klarna rating & reviews (Apple Store): 4.8-stars and 522,000 reviews

By installing and signing up for Klarna app and completing 1 payment, you can unlock a $5 welcome reward.

The more you shop and pay later, and the more you pay back on time, the more purchasing power you will unlock, allowing you to spend more. Additionally, you gain access to more exclusive deals and offers.

Key points about Klarna:

• Use online or in-store.
• Split any purchase into 4 interest-free payments.
• Pay 25% upfront.
• Everyone has a different total spending limit based on their finance history. Klarna only lends what’s appropriate for you and doesn’t accept customer-initiated requests for more credit.
• Klarna runs a soft credit check, which does not affect your credit score.
• If you use Klarna Financing (available with select retailers), a hard credit check may be required. However, Klarna does not run a hard credit check for the Pay in 4 option.

For more detail, read “Is Klarna Safe!”

3. Affirm

• App available for: Android & iOS
• Affirm rating & reviews (Google Play): 4.7-stars and 114,192 reviews
• Affirm rating & reviews (Apple Store): 4.9-stars and 857,900 reviews

Affirm allows you to purchase an item now and pay it off over time. It’s another highly popular app for splitting the cost of your purchases, with hundreds of thousands of positive reviews on both app stores.

Key points about Affirm:

• 0% or 10% to 30% APR. Some customers may qualify for 0% APR, meaning they will pay nothing for split payments over time. Others will pay interest based on credit.
• APR is subject to eligibility check.
• Customers can borrow up to $17,500.
• Charges no late fees.
• A down payment may be required.
• Available for purchases online or in-store.
• Performs a simple credit check that doesn’t affect your credit score.

4. PayPal Pay in 4

• App available for: Android & iOS
• PayPal Pay in 4 rating & reviews (Google Play): 4.4-stars and 2,322,298 reviews
• PayPal Pay in 4 rating & reviews (Apple Store): 4.8-stars and 6,000,000 reviews

PayPal is a widely recognized company known for quick and convenient payments. It offers a buy now, pay later feature called PayPal Pay in 4, available within the PayPal app to split payments into installments.

Key points about PayPal Pay in 4:

• 0% or 10% to 30% APR. Some customers may qualify for 0% APR, meaning no interest for split payments over time, while others will pay interest based on their credit.
• APR is based on credit and subject to an eligibility check.
• Customers can borrow up to $17,500.
• No late fees.
• A down payment may be required.
• Available for purchases online or in-store.
• Performs a simple credit check that doesn’t affect your credit score.

Pay in 4 is not currently available to residents of:

• New Mexico
• North Dakota
• Missouri
• South Dakota
• Wisconsin
• Nevada
• Rhode Island
• Or any U.S. Territories

The PayPal app has millions of reviews and a good rating on both the App Store and the Google Play store.

5. Perpay

• App available for: Android & iOS
• Perpay rating & reviews (Google Play): 4.4 stars and 3,128 reviews
• Perpay rating & reviews (Apple Store): 4.7 stars and 4,000 reviews

Perpay is another buy now, pay later app that’s well-rated and offers unique features:

Key points about Perpay:

• Does not impact your credit score.
• Split your purchase into 4 payments.
• No interest charged.
• No late fees.
• Accepted at millions of stores including Target, Best Buy, and Estee Lauder.
• Backed by PayPal, offering the same Purchase Protection.
• Requires the first payment to complete the purchase, followed by 3 more payments every two weeks.
• Available for purchases of $30 to $1,500.

Perpay is designed for accessibility, allowing users to make purchases over time and potentially build credit without a credit history check, using verified income to set spending limits.

6. Afterpay

• App available for: Android & iOS
• Afterpay rating & reviews (Google Play): 4.5 stars and 119,022 reviews
• Afterpay rating & reviews (Apple Store): 4.9 stars and 668,800 reviews

Afterpay is another popular buy now, pay later app with many positive reviews. With so major stores that accept Afterpay, you can buy almost anything and pay for it later.

Key points about Afterpay:

• Pay in 4 bi-weekly installments. Pay the first installment upfront and then the remainder every 2 weeks.
• Choose from thousands of stores and brands.
• Find deals on beauty, fashion, homeware, and more.
• Interest-free payments.
• Available in-store with select retailers.
• Pay 25% upfront and the rest over the next 6 weeks.

7. Zip (Previously Quadpay)

• App available for: Android & iOS
• Zip rating & reviews (Google Play): 4.4-stars and 26,460 reviews
• Zip rating & reviews (Apple Store): 4.9-stars and 284,100 reviews

Zip, formerly known as Quadpay, is a widely used buy now, pay later app:

Key points about Zip:

• $1,000 average spending power.
• You pay with small payments from your paycheck.
• Increases credit score by an average of 39 points.
• No interest charged.
• No late fees.
• No credit check required.
• Shop from over 1,000 brands.

Things to Consider When Using Buy Now, Pay Later Apps

There are numerous benefits to using buy now, pay later apps:

• Most apps charge no interest or offer lower rates than credit cards.
• Approval is often easier, even with lower credit scores.
• BNPL plans typically do not impact your credit score.

However, it’s important to be aware of potential drawbacks:

• Stay mindful of late fees which can vary by state and may accrue quickly.
• Although BNPL plans generally don’t affect credit scores, missed payments could have consequences.
• Regulatory scrutiny, such as the current CFPB inquiry, aims to assess the risks and benefits of BNPL credit.

Recently, the Consumer Financial Protection Bureau (CFPB) opened an inquiry into buy now, pay later credit.

CFPB Director Rohit Chopra said:
“Buy now, pay later is the new version of the old layaway plan, but with modern, faster twists where the consumer gets the product immediately but gets the debt immediately too. We have ordered Affirm, Afterpay, Klarna, PayPal, and Zip to submit information so that we can report to the public about industry practices and risks.”

So, what are some of the CFPB’s concerns with BNPL?

Debt Accumulation

The CFPB is concerned about customers getting into debt by using this type of financing. It states that because of the ease of getting these loans, consumers can end up spending more than anticipated.

It’s important when using the apps above to keep up with the number of buy now, pay later plans you have running.

In the past, installment plans were mostly used for the occasional large purchase. But, BNPL can be used for everyday, discretionary buying. If you have multiple purchases on multiple payment schedules with different companies, it can be hard to keep track of when payments are scheduled.

Thankfully, most of the apps above allow you to view your payment schedules within the app, and some send reminders when payments are due. Still though, just be aware of how often you are using buy now, pay later financing when you purchase things.

The last thing you would want to do is not have enough money to pay your installments as this could result in late fees from the app and/or charges from your bank.

Debt accumulation is not the only concern that the CFPB has either.

Data Harvesting

The CFPB is also concerned with data harvesting.

Because BNPL lenders can have access to the valuable payment histories of customers, some have used this collected data to create closed loop shopping apps with partner merchants. They push specific brands and products, particularly geared toward younger audiences.

The CFPB wants to better understand the practices around data collection, behavioral targeting, data monetization, and the risks that these could create for consumers.

Regulatory Arbitrage

The CFPB is also concerned that some BNPL companies may not be adequately evaluating what consumer protection laws apply to their products. So, for example, many BNPL companies don’t provide the kind of dispute resolution protections that are typically available with other types of credit, like credit cards.

These are valid concerns. Like I said, just make sure you stay up to date on when your installment payments are due.

Buy Now, Pay Later Apps: Final Thoughts!

Buy now, pay later apps offer an easy-to-use financing option that even people with a low credit score can use.

As I said earlier, I have used buy now, pay later a couple of times with success. However, I would caution against using it too much. You can end up missing payments or not having the cash. Only use BNPL apps if you know that you can afford to pay for the product at a later date and if you can make your payments on time.

What do you think is the best buy now, pay later app? Let us know in the comments section below!