Buy now, pay later (BNPL) services have become super popular lately. They let you buy stuff and pay for it later in smaller chunks, usually without any extra fees. It’s like a flexible payment plan that’s often interest-free. BNPL is a handy alternative to credit cards, especially for buying expensive things because it spreads out the cost over time, making them more affordable.
These services have exploded in popularity because they’re easy to use and don’t require a credit check. With BNPL, you can shop online or in-store and split your payments into manageable chunks, making budgeting simpler. Plus, since there’s usually no interest, you won’t end up paying more for your purchases. As more people embrace the convenience of BNPL, it’s changing the way we shop and pay for things.
Here are 7 of the top buy now, pay later apps to consider using in 2024.
7 Best Buy Now Pay Later Apps to Use in 2024
1. Affirm
Affirm is one of the biggest and most well-known BNPL providers. With Affirm, you can split purchases from participating retailers into biweekly or monthly installments over 3, 6, or 12 months. When you choose Affirm at checkout, you’ll be approved for a set dollar amount and presented with repayment terms.
Affirm doesn’t charge any late or hidden fees. However, interest rates can range from 0-30% APR depending on your credit. Affirm offers flexible payment options and partners with major retailers like Walmart, Target, and Shopify. It’s a great BNPL choice for spreading out bigger purchases over time.
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2. Afterpay
Afterpay is another popular Buy Now Pay Later app with no interest and no hard credit checks. Instead of interest, Afterpay charges fees between retailers. You make 4 payments every 2 weeks to pay off your purchase through Afterpay’s automated system.
Afterpay is accepted at major stores like Sephora, Urban Outfitters, and Anthropologie. It’s best for smaller purchases under $1000. Keep in mind there are limits on how much you can use Afterpay until you build up your account. Overall, it’s a user-friendly BNPL app for shoppers who want to budget purchases in installments.
3. Splitit
Splitit is unique because it lets you use your existing credit card to split purchases into monthly installments. There are no applications, registrations, or changes to your credit limit. You simply select Splitit at checkout and charge the full amount to your credit card. Then, Splitit will automatically deduct the installment payments from your card each month.
Splitit charges no interest as you’re using your credit. However, retailers may charge fees. It’s an easy way to split payments over time without getting a separate loan. Splitit is accepted at many clothing, jewelry, home goods, and electronics retailers. The installment terms range from 3-24 months.
4. Sezzle
Sezzle is one of the best Buy Now Pay Later apps that is focused on responsible spending. Purchases are split into 4 interest-free installments every 2 weeks. Sezzle clearly outlines repayment terms upfront and provides reminders before the next payment.
While Sezzle doesn’t perform hard credit checks, you’ll need to provide income verification and personal details. Sezzle has the highest approval rate of any major BNPL app but the lowest purchase limits, making it best for smaller purchases. You can use Sezzle at retailers like Fashion Nova, Forever21, and Urban Outfitters.
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5. Klarna
Klarna is a popular Swedish shop now pay later apps with over 90 million global users. You can pay in 4 interest-free installments or finance purchases longer-term with monthly payments. Klarna offers instant financing decisions and doesn’t require a hard credit check.
Klarna also provides a “Pay in 30” option where you have 30 days to pay for your purchase in full. The Klarna app makes tracking repayments easy. And Klarna’s “Smooth Sessions” can help you improve your credit over time. You can use Klarna with retailers like H&M, Sephora, Macy, and IKEA.
6. PayPal Pay in 4
PayPal Pay in 4 allows you to split purchases into 4 interest-free payments every 2 weeks. It’s seamlessly integrated into PayPal’s platform, so over 20 million PayPal users already have access.
To use Pay in 4, simply select it at checkout with any PayPal merchant. PayPal will run a soft credit check but it won’t impact your credit score. There are no late fees – although you may get barred from using PayPal Pay in 4 if you miss too many payments. Overall, it provides an easy way to split PayPal purchases.
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7. Zip
Zip offers point-of-sale installment loans, allowing you to spread purchases across 6 interest-free weeks or 10-12 months with fixed fees. Zip integrates with retailers to offer on-the-spot financing both online and in-store.
Zip requires an application with identity and credit verification. Zip will appear among your payment options if you qualify for financing. You can use Zip at major national retailers like Walmart, Target, Amazon, and Best Buy. Zip also lets you manage payments conveniently from your phone.
How Do BNPL Apps Work?
Buy Now Pay Later apps provide short-term financing for online or brick-and-mortar purchases. Here are some key points about how they work:
- You select a BNPL option at checkout after adding items to your cart. This prompts a credit check, although often just a soft check that doesn’t affect your score.
- If approved, you’ll complete the purchase and receive the items immediately. The BNPL provider pays the retailer upfront.
- The total purchase amount gets divided into a set number of installments (often 4 payments every 2 weeks). The repayment schedule is presented upfront.
- The installments are automatically deducted from your debit card, bank account, or credit card on the scheduled dates.
- Late fees may be charged if you miss payments, but there is no interest unless explicitly stated.
- BNPL apps do not require a traditional loan application or agreement. The terms are straightforward pay-in-4 plans or longer fixed-term financing.
- BNPL providers make money by charging merchants transaction fees and late fees from consumers. Many offer their service for free to shoppers.
Also read: How to Add PayPal to Google Pay
Tips for Using BNPL Apps Responsibly
If you use Buy Now Pay Later apps strategically and responsibly, they can be great financial tools. Here are some tips:
- Treat BNPL like regular payments – don’t spend more just because financing is available. Only use BNPL for purchases you plan to make regardless.
- Verify you can afford the incremental payments along with your other expenses and financial obligations. Don’t overextend yourself.
- Carefully review repayment terms so you know the payment amounts and dates. Put reminders on your calendar to avoid missed payments.
- Understand late fees and penalties for missed payments. Apps like Afterpay charge up to 25% of the order value.
- Monitor installment spending limits. Using BNPL for every purchase could max out your spending allowances quickly.
- Read return policies carefully. Returning BNPL items can be more complicated than normal returns.
- Consider using BNPL for planned big-ticket expenses rather than impulse purchases. Use it strategically to fund items just outside your budget.
- Compare BNPL pricing. While many offer 0% interest, some charge deferred interest or retailer fees. Calculate the true cost.
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Conclusion
Here were the top buy now pay later apps to try in 2024. BNPL apps allow you to split purchases into incremental, interest-free payments, creating more flexible financing options. Top apps like Affirm, Afterpay, Klarna, and PayPal Pay in 4 offer user-friendly digital installment plans. While convenient, be cautious of overspending and missed payment fees.
With smart BNPL use, you can smoothly finance larger shopping expenses. Follow us on social media – Facebook, Instagram and YouTube.