Best Buy Now, Pay Later Apps of 2023

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

And, globally, BNPL accounted for about 2.1% of all eCommerce transactions in 2020.

Suffice 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 will be wondering what your options are. Well, that’s what today’s post is all about.

Below, I’ll cover 7 buy now, pay later apps that you can use on your next purchase.

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.

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

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

• Google Play store stats: 4.8-stars and 27,000 reviews
• App Store stats: 4.9-stars and 67,700 reviews

First on the list we have Sezzle. Now, this really 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 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:

• 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 up-front.

Here’s where you can get the app:

• iOS
• Android

2. Klarna

• Google Play store stats: 4.6-stars and 358,900 reviews
• App Store stats: 4.8-stars and 522,000 reviews

Klarna is one of the most well-known buy now, pay later apps. When I’m shopping online, I see Klarna all the time, often in clothing stores.

The app is really popular with hundreds of thousands of reviews on both the App Store and the Google Play store. It has a rating of almost 5-stars on both app stores too, so it’s well-reviewed by consumers. It’s always good to see great reviews, right?

With the app, you can split payments into interest-free installments.

Get exclusive deals and discounts from all over the world right in the Klarna app.

And, for signing up into the 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, which allows you to spend more. Plus, you also gain access to more exclusive deals and offers.

Key points:

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

Here’s where you can get the app:

• iOS
• Android

3. Affirm

• Google Play store stats: 4.7-stars and 114,192 reviews
• App Store stats: 4.9-stars and 857,900 reviews

Next on the list we have another one of the most popular apps you can use to split the cost of your purchases, and that’s Affirm.

Affirm is an app that allows you to purchase an item now and pay it off over time.

It has hundreds of thousands of reviews on both app stores where it’s well-rated by consumers who’ve used it.

Key points:

• 0% or 10% to 30% APR. So, some customers may qualify for 0% APR, meaning they will pay nothing for split payments over time. Others will pay interest though.
• APR is based on credit and is subject to an 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.

Here’s where you can get the app:

• iOS
• Android

4. PayPal Pay in 4

• Google Play store stats: 4.4-stars and 2,322,298 reviews
• App Store stats: 4.8-stars and 6,000,000 reviews

PayPal is, obviously, a really well-known company that allows you to make and receive payments quickly and conveniently. It also offers a buy now, pay later feature, called PayPal Pay in 4.

You can use this feature within the PayPal app to split your payments into installments.

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 the App Store and the Google Play store.

Key points:

• Does not impact your credit score.
• Split your purchase into 4 payments.
• No interest charged.
• No late fees.
• There are millions of stores where you can pay in 4, like Target, Best Buy, and Estee Lauder.
• It’s backed by PayPal, so you get the same Purchase Protection that you already enjoy from PayPal.
• You’ll need to make the first payment to complete the purchase, and then make the remaining 3 payments, one every two weeks.
• Available to consumers for purchases of $30 to $1500.

Here’s where you can get the app:

• iOS
• Android

5. Perpay

• Google Play store stats: 4.4 stars and 3128 reviews
• App Store stats: 4.7 stars and 4000 reviews

Perpay is another app to consider. It doesn’t have as many reviews as the previous apps do, but it’s still well-rated and a good choice for many.

If you are looking to improve your credit score, then Perpay could be the BNPL app for you.

It’s good for people who have bad credit because it doesn’t check your credit history, and it uses your verified income to set your spending limits.

According to Perpay, its mission is to make everyday purchases more accessible and help you to build credit along the way.

It’s an all-in-one shopping app that allows you to buy from your favorite brands, pay over time and build credit along the way.

Key points:

• $1,000 average spending power.
• You pay with small payments from your paycheck.
• It increases credit score by 39 points on average.
• No interest charged.
• No late fees are charged.
• There’s no credit check required.
• Shop more than 1,000 brands.

Here’s where you can get the app:

• iOS
• Android

6. Afterpay

• Google Play store stats: 4.5-stars and 119,022 reviews
• App Store stats: 4.9-stars and 668,800 reviews

Another app that you may want to try is Afterpay. This one is also popular and really well-reviewed with hundreds of thousands of reviews on both app stores. With the app, you can buy now from lots of different retailers and then split the cost of the payment.

Key points:

• Pay in 4 bi-weekly installments. Pay the first installment upfront and then the remainder every 2 weeks.
• 1,000s of stores and brands to choose from.
• You can find shopping deals on a range of beauty, fashion, and homeware products and plenty of other items.
• Interest free payments.
• Available in-store too, with some retailers now accepting Afterpay. You pay 25% Upfront and the rest over the next 6 weeks.

Here’s where you can get the app:

• iOS
• Android

7. Zip (Previously Quadpay)

• Google Play store stats: 4.4-stars and 26,460 reviews
• App Store stats: 4.9-stars and 284,100 reviews

Zip, which was previously known as Quadpay, is a really popular shopping app you can use to split up the cost of your purchases.

You can browse its directory of merchants or make purchases directly with the Zip app anywhere that accepts Visa.

Key points:

• Zip runs a soft credit check. So, your credit score isn’t affected
• You can split your purchases into 4 installments and pay over 6 weeks.
• Shop online and in-store
• Purchases made through Zip are subject to a $1 platform fee per installment (a total of $4 per order).
• Pay the first installment upfront.
• Charges late fees. If your order is late, you may incur an initial late fee. This is $5, $7, or $10 depending on your state of residence. Zip does say that if your order is assessed a late fee, to let it know so it can look to reverse/refund those fees for you.

Here’s where you can get the app:

• iOS
• Android

Things to Consider When Using Buy Now, Pay Later Apps

There are so many benefits to buy now, pay later apps.

Most of these apps charge no interest or interest rates that are lower than those you’d get with a credit card.

Also, it’s possible to get approved for this type of financing, even if you don’t qualify for other loan options because of your low credit score.

Usually, BNPL plans don’t affect your credit score either. So, there are a lot of benefits to them.

While there are so many positives to BNPL financing, there are some things that you should keep in mind.

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.

Summary

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!