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Buy now, pay later (BNPL) apps allow you to purchase something and then pay for it over time, typically in four installments. You've likely seen a BNPL app at checkout when shopping online. With low (or no) fees and interest rates, as well as credit limits that typically cover common purchases like clothing and shoes, buy now pay later apps have become popular with everyday shoppers. When asked in 2023, 9.3% of shoppers said they had used a BNPL app in the last 30 days, according to the Survey and Diary of Consumer Payment Choice.
After collecting data on over 20 popular buy now, pay later apps and services, Affirm rose to the top of our rankings as the best overall. We considered factors like ease of purchasing, payments, interest rates, credit checks, and more to determine the winner. Below are the best buy now pay later apps for 2024.
Best Overall : Affirm
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Affirm
- Purchase limit: $17,500
- Credit check: Soft credit check to prequalify
- Terms: Payments of three, six, or 12 months are typical
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
Most transactions require a credit check
No physical credit card
Affirm is a publicly traded company located in San Francisco, California and was founded in 2012, and has served over 12 million customers. Customers can borrow up to $17,500 and pay over time with no interest or interest rates from 0% to 36%, depending on their credit score.
Most loans are repaid in three, six, or 12 months without any additional fees (only interest), making this the best overall choice. Longer terms may also be available in some situations.
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
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Sezzle
- Purchase limit: Varies
- Credit check: Soft credit check
- Terms: Two, four, or monthly payments
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
No interest on purchases
Requires 25% down payment upon purchase
Additional payments aren't rescheduled if you don't select option
A fee for additional reschedules
Sezzle is based in Minneapolis, Minnesota, and is a publicly traded company that operates in the U.S., Canada, Germany, and several other countries. The company is a Certified B Corp., which means that it uses its profits and resources to support a public benefit. It has 3.4 million active customers and there are now about 47,000 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 reschedule for that order incurs a fee. Sezzle does charge a late fee when needed, up to $15, too.
Best for Students : Afterpay
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Afterpay
- Purchase limit: Starts at $500
- Credit check: Soft credit check, no minimum score
- Terms: 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. There is also a virtual card in the app for in-store purchases.
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, founded in 2014, is an Australian company that operates in its home country, New Zealand, the U.K., E.U., Canada, and the U.S. It now has 20 million customers from around the world. It works with about 144,000 merchants, 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.
Read the full Afterpay review.
Best for No Credit Check : Splitit
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Splitit
- Purchase limit: Uses the existing credit of your credit cards
- Credit check: None
- Terms: Payments for three to 24 months
Splitit is our choice for the best BNPL app with no credit check. Instead of issuing you more credit, Splitit uses your existing Visa, Mastercard, Discover, or Union Pay credit card to make purchases.
No applications, credit checks, or registration required
Uses your existing credit card limits
No need to worry about approval for new credit
You must have a credit card with available credit
Does not build credit beyond normal credit card use
Not available with Amex cards (merchant dependent)
Splitit is a publicly traded company based in New York City and founded in 2012. It has partnered with Wix, Big Commerce, Woo Commerce, Shopify, and more to expand its offerings. With Splitit, customers can continue to use their Visa, Mastercard, Discover, and Union Pay 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. Obviously, interest can still be charged by your credit card company.
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 late fees charged by Splitit.
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
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Perpay
- Purchase limit: Does not use credit history
- Credit check: Spending limits vary
- Terms: Payments from your paycheck
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
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 2014 and is currently located in Philadelphia, Pennsylvania. With over five 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 allows users to choose the number of payments and the frequency of these payments is the same as their paycheck frequency.
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
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PayPal
- Purchase limit: Per transaction limit of $1,500
- Credit check: Soft credit check may be needed
- Terms: Four equal payments
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 $1,500.
PayPal is a familiar brand name
Interest-free payments
Can use at millions of online merchants
Maximum purchase of $1,500
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 Nike, Best Buy, and Target for transactions ranging from $30 to $1,500, 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 account, debit card, or credit card. 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 two weeks thereafter. Pay in 4 is not currently available to residents of New Mexico, North Dakota, Missouri, Wisconsin, Nevada, Rhode Island, and all U.S. territories.
Best for Large Purchases : Klarna
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Klarna
- Purchase limit: No predefined credit limit
- Credit check: Soft credit check
- Terms: Pay now, pay in four equal payments, pay in 30 days, or pay over time
Klarna is our choice for the best buy now, pay later app for large purchases because you can spread the payments up to 24 months. Klarna's virtual card numbers can be used at any online or in-person retailer, too.
Can be used wherever credit cards are accepted
One-time use card numbers provide enhanced security
Earn rewards with its Vibe loyalty program
Each purchase must be approved by Klarna
Klarna was founded in 2005 in Sweden. It has since expanded within Europe and to the U.S. and boasts 147 million active customers and over 400,000 merchants across 45 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 four option. And if you choose pay in four, you'll pay not fees or interest as long as payments are made on time. Klarna's other payment plans may charge interest.
During checkout, create a virtual card in the Klarna app and use that number to complete your purchase. One payment option is to pay off your purchase in four equal payments. The first is due immediately and the remaining three are 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. Another option is to use up to 24-month financing to handle larger purchases helping it win this category. This longer-term option does charge interest.
Read the full Klarna review.
The Bottom Line
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.
In the News
In May 2024, the Consumer Financial Protection Bureau released a new rule stating that buy now, pay later lenders must offer some protections similar to those offered by credit cards. For example, a buy now, pay later lender must provide you the right to dispute a charge and demand a refund from the lender after you return the item you purchased with a BNPL lender.
Compare the Best Buy Now, Pay Later Apps
| Company | Number of Installments | Interest Rate | Amount Due at Purchase | Late Fees | Popular Brands |
|---|---|---|---|---|---|
| Affirm Best Overall | Varies | 0% to 36% | Varies | None | Walmart.com, Peloton, Expedia, Pottery Barn |
| Sezzle Best for Flexible Payment Plans | 4 | 0% | 25% | Up to $15 | Umbro, GameStop, Altitude Sports, Public Rec |
| Afterpay Best for Students | 4 | 0% | 25% | 25% for orders less than $40, up to 25% or $68 max for orders $40+ | Old Navy, Bed Bath & Beyond, Forever 21, adidas |
| Splitit Best for No Credit Check | 3 to 24 | 0% | Varies | None | Echelon Fitness, GlassesUSA, REST |
| Perpay 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% | None | Fossil, Bed Bath & Beyond, Lands' End, ALDO |
| Klarna Best for Large Purchases | Varies, up to 24 months | 0% to 33.99% | Varies | Are charged | Sephora, Bed Bath & Beyond, Nike, Tommy Hilfiger |
What Is Buy Now, Pay Later?
Buy now, pay later refers to the apps and services often available at online checkout that allow you to buy something and pay for it in installments instead of at full price right away. It's kind of like a short-term loan that you pay back over the course of a few months (sometimes longer). These installment loans typically come with little or no fees or interest rates, which makes them appealing. However, there may be some risks to consider before opting for this payment plan at checkout.
Pros and Cons of Buy Now, Pay Later Apps
Pay over time with little or no interest or fees
Often comes with easy approval
Sometimes based on a soft credit check that won't impact your score
Adds to your personal debt
Could impact your credit score if you fail to pay
Won't help you build your credit
Returns could be complicated
No rewards earned on purchases
How to Choose the Best Buy Now, Pay Later App
There are many buy now, pay later 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 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.
- Pick a BNPL app that reports to the credit bureaus: If you're working on building your credit, you'll benefit from making on-time payments if the BNPL app reports your activity to the major credit bureaus.
- Choose a BNPL that is accepted at the retailer: When you apply for a BNPL account, choose one that is accepted at many of the stores you shop so you don't need to open multiple accounts.
- Check the credit limit: 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.
- Check the fees and interest rates: 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
Choose a buy now, pay later app when you want to:
- Make purchases without a credit inquiry
- Get an 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
Use a credit card instead of a BNPL app when you want to:
- Get 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
- Get price, return, and purchase protection benefits
- Receive a complimentary extended warranty
- Have 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.
Alternatives to Buy Now, Pay Later Apps
Buy now, pay later apps are short installment loans. If you don't want to use one for a purchase, there are other options.
Layaway
Layaway is less popular now than before technology made paying for items easier. With layaway, you make a down payment on an item. The store holds it until you finish making installment payments. Only then do you get to take the item home with you. Compare layaway and buy now, pay later apps before deciding which is right for you—the latter allows you to take the item home with you immediately.
Rent-to-Own
You may have heard of Rent-a-Center stores or other retailers offering rent-to-own payment plans. These allow you to pay for an item over time while using it at home until it is paid in full. Only then do you own it. If you don't make the payments, the store or retailer can take the item back. There's often no credit check with rent-to-own plans.
Debit Card
A debit card allows you to pay for items with money that is directly in your checking account. As long as you have money in the account to cover the cost of the item, swiping your debit card or typing in your card info online is an easy way to pay for something upfront and interest-free. Just be mindful of overdraft fees if you accidentally overdraw your account.
Credit Card
A credit card can be used to pay for items in person or online. After swiping your card or typing in your card info, the charge will appear on your credit card statement. You'll be required to pay it back with money from your checking or savings by the due date, or you'll risk paying a high credit card interest rate. Paying the interest rate will make the original purchase more expensive.
If you use credit cards the right way, they can help you build your credit history and increase your credit score. But be careful, too—you don't want to go into credit card debt if you can help it. If it's the only way you can pay for something, then it is an alternative option to a BNPL app—though the app could help you save money in the long run if you pay no interest.
Cash
Cash is a good way to pay for purchases in person without risking additional fees or interest charges. Some retailers charge less for items when they're paid for in cash. For example, some stores and brands will charge an additional credit card fee if that's how you choose to pay. Using cash can help you save money. However, if it's between cash and a BNPL app, consider whether you need the additional time to pay back the purchase and if you'll have the money to do so in the coming weeks.
Personal Loan
A personal loan is typically used for larger purchases or projects, such as a home renovation or a wedding. However, if you really need money to pay for a purchase, you could take out a personal loan and then use the money to pay for the item instead of a buy now, pay later app. Personal loans come with interest, and you'll be required to pay back the loan in full by the end of the term (anywhere from a few months to several years). Taking out a personal loan usually requires a credit check.
Venmo or PayPal
Venmo and PayPal are two ways to pay for items via electronic transfer of funds. Not all retailers accept Venmo or PayPal—or other apps like them. If the retailer does, you'll need to make sure your PayPal or Venmo are connected to your bank account so that the money can transfer through the app to the retailer. Venmo and PayPal don't typically come with interest or fees, but read the fine print before choosing one of these payment methods.
Why You Should Trust Our Picks for Buy Now, Pay Later Apps
Investopedia identified the most important factors when it comes to picking a buy now, pay later app. We then collected hundreds of data points from over 20 companies so that we could compare them and determine which one is the best for you. We considered factors like terms, credit checks, loan terms, fees, interest rates, and more. Investopedia launched in 1999, and has been helping readers find the best BNPL apps since 2021.
Frequently Asked Questions
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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.
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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.
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What Credit Score Do You Need to Use a Buy Now, Pay Later Service?
No set credit score is 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.
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Can Buy Now, Pay Later Apps Negatively Impact Your Credit Score?
Buy now, pay later apps do not often report your payment activity to the credit bureaus. This means your activity does not help or directly hinder your credit score. However, your choice to use a BNPL app will show up on your credit history because you're taking out a loan and a soft credit check is often required for approval. Additionally, if you miss payments or make no payments, your profile could be sent to collections and a debt collector could then report your activity to the credit bureaus.
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Who Is Eligible to Use a Buy Now, Pay Later App?
In order to use a buy now, pay later app, you typically need to be at least 18 years of age, have a mobile phone number, and a bank account or credit card so that you can make your payments.
How We Determined the Best Buy Now, Pay Later Apps
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.
Your Guide to Buy Now, Pay Later Apps
- Buy Now, Pay Later: What It Is, How It Works, Pros and Cons
- How Buy Now, Pay Later (BNPL) Can Finance Travel: Pros and Cons
- Which Major Retailers Accept Buy Now, Pay Later?
- Buy Now, Pay Later vs. Layaway
- Buy Now, Pay Later vs. Rent to Own
- Does Buy Now, Pay Later Affect Your Credit Score?
- Buy Now, Pay Later vs. Credit Cards
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