Buy now, pay later (BNPL) apps can help consumers finance everyday purchases like clothing, gifts and home decor without extensive applications and high interest rates. These apps allow users to purchase items immediately while paying in installments instead of making one full payment upfront. This can make budgeting easier by allowing consumers to spread out their payments over time while still getting access to their desired items immediately.
Best Buy Now, Pay Later Apps 2024
Summary: Best Buy Now, Pay Later Apps
Company | Forbes Advisor Rating | Interest rates | Credit limit | Fees | Learn More | ||||
---|---|---|---|---|---|---|---|---|---|
Klarna | 4.5 | 0% to 29.99% | Varies | Late fees up to $35 | View More | ||||
Splitit | 4.5 | None | Varies | None | View More | ||||
Affirm | 4.0 | 0% or 10% to 36% | $50 to $25,000 | None | View More | ||||
PayPal Pay in 4 | 3.5 | None | $1,500 ($10,000 with Pay Monthly) | None | View More | ||||
Afterpay | 3.5 | None | Varies | Up to 25% of the order value | View More |
Tips to Compare Buy Now, Pay Later Apps
When it comes to BNPL services, it’s essential to compare the features and benefits of each app or service. Here are some tips for comparing BNPL apps:
- Check fees. Many BNPL apps charge fees, such as late fees or interest rates. Be sure to read through the terms and conditions of each app carefully so you know exactly what you’re getting into.
- Read user reviews. Before signing up for a BNPL service, be sure to read user reviews and feedback from others who have used the app in the past. This will help give you an idea of how reliable the app is and how satisfied customers are with their service.
- Consider your needs. Each BNPL service has its own unique features and benefits that may or may not fit your needs—including financing limits. Be sure to carefully consider the features of each app before signing up, so you know you’re getting the best deal.
- Compare payment plans. Many BNPL services offer different payment plans to suit different budgets and lifestyles. Be sure to compare the payment plans of each app so you can choose the one that fits your financial situation best.
What Is Buy Now, Pay Later?
Buy now, pay later is a type of payment service that allows consumers to purchase items and then pay for them in increments over time. This type of service usually offers more affordable payments than traditional credit cards or personal loans, making it a popular choice for those who want to shop without having to worry about high interest rates.
Some BNPL services also offer promotional codes and discounts that can help you save even more money on your purchases.
How Does Buy Now, Pay Later Work?
When you sign up for a BNPL service, you’ll be asked to provide your payment details. Once approved, you can start making purchases right away, and the platform will spread out the cost of the items over several payments. Depending on the BNPL service you use, you may have to make weekly, bi-weekly or monthly payments until the balance is paid off.
It’s important to note that some BNPL services may require a credit check before approving your application. Be sure to read through all of the terms and conditions before signing up so you know what’s expected of you.
When Should You Use Buy Now, Pay Later?
Ideally, you should only use BNPL apps in emergencies and to cover necessary expenses. This is because these apps may come with high interest rates and fees, and they can lead to a habit of overspending. What’s more, many BNPL apps don’t report payments to the three main credit bureaus, making it difficult for borrowers to build their credit.
That said, low-credit borrowers without the cash to make a necessary or emergency purchase can benefit from this form of financing. Qualified consumers should also consider an alternative like a 0% APR credit card with more substantial consumer protections than buy now, pay later apps.
Methodology
We reviewed eight popular BNPL providers based on 11 data points in the categories of loan details, loan costs, perks, customer experience and accessibility. We chose the best lenders based on the weighting assigned to each category:
- Loan cost: 30%
- Loan details: 25%
- Accessibility: 20%
- Perks: 15%
- Customer experience: 10%
Within each major category, we also considered several characteristics, including available loan amounts, repayment terms, interest and applicable fees. We evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process.
Where appropriate, we awarded partial points depending on how well a lender met each criterion.
To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our Loans Rating & Review Methodology.