In recent years, Buy Now, Pay Later (BNPL) platforms have surged in popularity, offering consumers a flexible way to spread the cost of purchases. This method of payment has transformed the way people shop, especially in the e-commerce sector.
But with so many BNPL platforms available, how do you know which one is best for you or your business? In this article, we’ll explore the top BNPL platforms, their benefits and drawbacks, and rank them from best to worst.
1. Klarna
Klarna is one of the most popular BNPL platforms, offering flexible payment options like “Pay in 4” installments, “Pay in 30 Days,” or longer-term financing. It operates in countries including the US, UK, Sweden, Germany, Australia, Canada, and more. Klarna partners with major retailers such as ASOS, IKEA, and H&M.
Pros:
- Flexibility: Klarna offers various payment options, including “Pay in 4,” “Pay in 30 Days,” or longer-term financing.
- Wide Reach: Available across multiple countries and integrated with top retailers like ASOS, IKEA, and H&M.
- Smooth User Experience: Klarna is known for its user-friendly app and seamless checkout integration.
Cons:
- Interest Charges: Some financing options carry interest, which can be confusing for users expecting fee-free payments.
- Late Fees: Failure to pay on time can result in late fees.
Why #1: Klarna leads the pack due to its robust set of options, global reach, and superior user experience.
2. Affirm
Affirm offers installment plans that allow consumers to spread the cost of purchases over 3 to 36 months, with interest rates based on the retailer and term. Available in the US and Canada, Affirm is widely used for high-ticket items from brands like Peloton and Walmart.
Pros:
- No Late Fees: Affirm doesn’t charge late fees, making it more forgiving than many competitors.
- Transparency: Affirm is clear about the interest rates upfront, so customers know exactly what they’re paying.
- Longer Terms: Allows for installment payments over 3 to 36 months, perfect for higher-priced items.
Cons:
- Interest Charges: Some financing options come with significant interest rates, depending on the retailer and the loan term.
- Limited Countries: Primarily available in the US and Canada.
Why #2: Affirm’s transparency and flexibility make it a solid choice, particularly for high-ticket purchases.
3. Afterpay
Afterpay allows users to split payments into four interest-free installments, paid bi-weekly. It’s available in countries including the US, Australia, New Zealand, UK, and Canada. Afterpay is especially popular among younger shoppers for financing purchases from various retailers.
Pros:
- Interest-Free: Payments are split into four bi-weekly, interest-free installments.
- Widely Accepted: Partnered with numerous brands globally, making it highly accessible.
- No Hard Credit Check: Doesn’t perform a hard credit check, allowing easier access.
Cons:
- Late Fees: Late payments can result in fees, which may compound if users aren’t careful.
- Short Payment Terms: The four-installment structure can be limiting for larger purchases.
Why #3: Afterpay’s no-interest model makes it appealing for everyday purchases, but the short repayment term could be a limitation for some.
4. Zip (formerly Quadpay)
Zip, previously known as Quadpay, splits payments into four installments over six weeks. It’s available in the US, Australia, New Zealand, and UK. Zip is accepted at major retailers like Amazon and Walmart, making it accessible and flexible for consumers.
Pros:
- Flexible Payments: Allows customers to split any purchase into four payments over six weeks.
- Widely Accepted: Can be used at a variety of major retailers including Amazon and Walmart.
Cons:
- Fees: Late fees and potential service fees for users who miss payments.
- Short-Term Payment Plans: The 6-week plan may be restrictive for larger purchases.
Why #4: Zip is widely accepted and easy to use, but the short payment window and potential fees drop it down the list.
5. Sezzle
Sezzle lets users divide their purchases into four interest-free payments over six weeks and is available in the US and Canada. Sezzle is also expanding into India and other markets, and it allows users to build credit with responsible use.
Pros:
- Interest-Free: Payments are split into four interest-free installments.
- Credit Building: Sezzle helps users build credit when they pay on time.
- No Hard Credit Check: Easier to access for a wider range of users.
Cons:
- Limited Features: Does not offer long-term financing options.
- Late Fees: Charges for late payments.
Why #5: Sezzle’s credit-building feature makes it unique, but the lack of long-term payment options may not appeal to all users.
6. PayPal Pay in 4
PayPal’s BNPL service, Pay in 4, is available in the US, UK, Australia, and select other countries. Customers can split their purchases into four interest-free payments, and it’s integrated with PayPal’s vast network of merchants, providing a trusted option for millions of users worldwide.
Pros:
- Trusted Brand: Backed by PayPal’s established reputation, offering confidence in security.
- Interest-Free: Offers four interest-free payments.
Cons:
- Limited Features: Unlike some competitors, PayPal’s BNPL option doesn’t offer long-term installment plans.
- Limited Availability: Currently only available in select countries.
Why #6: PayPal’s strong brand makes it appealing, but its limited flexibility keeps it from ranking higher.
7. Splitit
Splitit allows users to split payments using their existing credit cards without additional interest or fees. Available globally, including in the US, Canada, UK, Australia, and Europe, Splitit is a great option for those who want to leverage their available credit without new financing.
Pros:
- No Interest or Fees: Uses your existing credit card with no additional interest or fees as long as your credit card doesn’t charge interest.
- No Credit Check: Easy approval process since it uses your credit card.
Cons:
- Dependent on Credit Limit: Users must have sufficient available credit to split payments.
- Not Widely Used: Not as widely accepted by merchants as some other BNPL options.
Why #7: Splitit’s model is great for credit card holders, but its reliance on available credit may be limiting for some.
8. Bread
Bread provides both short-term and long-term financing options for up to 36 months and operates primarily in the US. It’s ideal for larger purchases, such as furniture or electronics, but may come with interest depending on the payment term and merchant.
Pros:
- Long-Term Financing: Offers monthly installment plans for up to 36 months, ideal for big-ticket items.
- Transparent Terms: Clear about interest rates and payment plans.
Cons:
- Interest Rates: Long-term financing comes with interest, which can add up.
- Limited Availability: Primarily available in the US, with fewer merchant partnerships than some competitors.
Why #8: Bread offers great long-term financing options but comes with interest rates that can be less attractive for smaller purchases.
9. Laybuy
Laybuy splits payments into six interest-free weekly installments and is available in New Zealand, Australia, and the UK. It offers a more rapid repayment schedule than many other platforms, making it popular in those regions.
Swedish fintech Klarna has acquired all of Buy Now, Pay Later (BNPL) competitor Laybuy’s assets.
Pros:
- Interest-Free: Divides payments into six weekly installments without interest.
- Popular in NZ, AU, and UK: Well-regarded in specific regions.
Cons:
- Weekly Payments: Short payment window may not suit all users.
- Late Fees: Failing to pay on time can result in fees.
Why #9: Laybuy is a good choice for those in certain regions, but its weekly payments can feel restrictive.
10. Zilch
Zilch offers flexible BNPL options and is available primarily in the UK. Users can spread payments over six weeks with no fees if paid on time. Zilch also provides virtual cards for both in-store and online purchases, enhancing its convenience.
Pros:
- Multiple Payment Options: Offers flexible BNPL and credit-like payment options.
- Zero Fees for On-Time Payments: Avoids fees if payments are made on time.
Cons:
- Limited Availability: Mostly available in the UK.
- Confusing Terms: Some users find the blend of BNPL and credit options confusing.
Why #10: Zilch has potential, but its limited reach and complex terms keep it at the bottom of our list.
Final Thoughts
BNPL Platform | Payment Options | Interest-Free |
---|---|---|
Klarna | Pay in 4, Pay in 30 Days, Long-term financing | Yes (for Pay in 4) |
Affirm | 3 to 36 months installments | Sometimes |
Afterpay | 4 bi-weekly payments | Yes |
Zip (Quadpay) | 4 payments over 6 weeks | Yes |
Sezzle | 4 payments over 6 weeks | Yes |
BNPL Platform | Available Countries | Late Fees |
---|---|---|
Klarna | US, UK, Sweden, Germany, Australia, Canada | Yes |
Affirm | US, Canada | No |
Afterpay | US, Australia, New Zealand, UK, Canada | Yes |
Zip (Quadpay) | US, Australia, New Zealand, UK | Yes |
Sezzle | US, Canada, India | Yes |
BNPL Platform | Payment Options | Interest-Free |
---|---|---|
PayPal Pay in 4 | 4 payments, interest-free | Yes |
Splitit | Split using credit card | Yes |
Bread | Short and long-term financing (up to 36 months) | No |
Laybuy | 6 weekly payments | Yes |
Zilch | 6 weeks, flexible payments | Yes |
BNPL Platform | Available Countries | Late Fees |
---|---|---|
PayPal Pay in 4 | US, UK, Australia | Yes |
Splitit | US, Canada, UK, Australia, Europe | No |
Bread | US | Yes |
Laybuy | New Zealand, Australia, UK | Yes |
Zilch | UK | No |
Choosing the right BNPL platform depends on your needs and preferences. Klarna tops the list due to its versatility and broad availability, followed by Affirm for its transparency and flexibility. However, all platforms have their pros and cons, so it’s important to weigh the factors that matter most to you—whether that’s avoiding interest, accessing long-term financing, or choosing a platform widely accepted by retailers.