If you shop online, you may have noticed an increase in the number of new payment options available. Recent economic conditions, including inflation and the bear market, have consumers looking for more ways to save money on the things they need and want. People are rethinking how they manage their finances in the current economy.

                By                    Kathy Evans
  • At a Glance
  • How BNPL Works
  • Affirm
  • Afterpay
  • Klarna
  • PayPal Pay in 4
  • Splitit
  • Zip
  • Using BNPL
  • Alternatives

Read: 3 Easy Tips to Turn Your Credit Woes into Wows

A fairly new financial concept — “buy now, pay later” — has entered the online shopping scene. As financial uncertainty continues to burden consumers, retailers are offering buy now, pay later apps more often.

Whether you’re making small, medium or large purchases, buy now, pay later apps make it easier for you to get what you need now and pay for it in the future. Continue reading to discover six of the top BNPL apps and services for 2023.

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A Quick Glance at 6 Top Buy Now, Pay Later Apps and Services

Here’s a look at six of the best buy now, pay later apps and services available to shoppers.

How Buy Now, Pay Later Apps and Services Work

Buy now, pay later apps are similar to the old layaway system of shopping. The difference is that with layaway, shoppers had to make installment payments before taking possession of the items. With BNPL, you can own the items upfront and then make flexible installment payments over time.

Most BNPL services typically work the same way:

  • Shop online or in-store at participating retailers or directly in the BNPL app.
  • Click an available BNPL link to apply for flexible payments and provide the requested personal information.
  • If you are eligible and approved, select the BNPL payment option at checkout.
  • Choose and agree to your payment schedule and interest rate, if applicable.
  • Confirm your purchase.
  • Make your payments directly to the BNPL company according to your agreed-upon payment schedule until the purchase is completely paid for.

1. Best for Longer Repayment Options: Affirm

To create an account with Affirm, you must provide your mobile number and additional personal information, including your name, email address and birthdate. Affirm carries the advantage of reducing your risk of missed payments by sending you text and email reminders before your payments are due.

If you choose the three-month payment schedule, you pay no interest. Choosing the six-month or 12-month schedule, you will pay an annual percentage rate of up to 36%. Affirm’s interest rates will never change from your initial agreement.

When you prequalify for an Affirm account, you know your exact purchase ceiling, although you do not have to use the full amount.

Where to learn more: Affirm website

Where to download the app: Google Play or the App Store

2. Best for Flexibility: Afterpay

When you use Afterpay, you must make your first payment at the time of purchase, and you pay the rest over six weeks. Your spending limit gradually increases over time, as long as you stay within your allowed budget and make your payments as scheduled.

You also have the option of changing your payment date on the Afterpay website or mobile app by taking the following simple steps:

  • Choose the order for which you want to change your payment date.
  • Select a new date.
  • Confirm your new date selection.

Afterpay has a hardship policy for customers who have trouble making repayments. If your circumstances change, you can choose to continue with your current payment plan or work with Afterpay to revise your plan to fit your current financial needs.

Where to learn more: Afterpay website

3. Best for Earning Rewards: Klarna

The Klarna app tailors your shopping experience to your preferences, whether online or in stores. You can join Klarna’s rewards club to unlock special deals. Membership is free, and you can earn one point for every dollar you spend. Points can be redeemed for rewards from participating retailers.

Klarna has several flexible payment options:

  • Split your payments into four installments every two weeks.
  • Pay in full within 30 days.
  • For larger purchases, get six-month to 36-month financing through Klarna’s bank partner, WebBank.

Where to learn more: Klarna website

4. Best for Larger Purchases: PayPal Pay in 4

PayPal is already a trusted name in online shopping, and its Pay in 4 feature allows you to pay for purchases in four total installments. Just like with Afterpay, you make a down payment at the time of purchase, and the remaining purchase price is split into three payments that are due every two weeks. Your purchases must be between $30 and $1,500, and you can pay directly through your PayPal wallet.

Pay in 4 is currently not available in all states. The late fees assessed also vary by state, so you should check the terms in your agreement closely when you choose this option at checkout.

Where to learn more: PayPal website

5. Best for Using Existing Credit: Splitit

With Splitit, you use your existing credit card to pay in smaller installments. You don’t even have to apply to use this BNPL service, and there are no fees or interest.

Since you use your existing credit, you continue to earn any points and rewards associated with your credit card. Even using your credit card, your credit score is never affected with Splitit.

Where to learn more: Splitit website

Where to download the app: N/A

6. Best Store Availability: Zip

Formerly QuadPay, Zip allows you to pay most purchases in four installments over six weeks. Many buy now, pay later apps are limited to participating retailers. What makes Zip a standout is its flexibility. You can use it to pay bills, shop in-store or online wherever Visa is accepted.

Zip charges a $4 to $6 installment fee — $1.50 must be paid with the initial installment and the remaining $4.50 is divided between future payments. There’s a minimum purchase of $35 required.

Where to learn more: Zip website

Should You Use a Buy Now, Pay Later App?

Millennial and Gen X shoppers are the two largest demographics using BNPL apps. Already strapped with student loan debt, many consumers have found BNPL apps to be the perfect tool to increase their spending power without going further into debt.

However, BNPL can make it too easy to overspend and end up paying interest and fees. You should only use a buy now, pay later service if you absolutely must, and be careful to make your payments on time.

Alternatives to Buy Now, Pay Later 

Although BNPL apps could come in handy if you’re in a cash crunch, the small fees could add up. There are alternatives to buy now, pay later apps you could consider:

  • Layaway: As mentioned already, some stores offer layaway on purchases. However, you won’t be able to take the goods until you pay for the items in full.
  • Credit cards: A credit card is similar to a BNPL app. Pay for items and decide how many installments you’d like to make. Before you decide which to apply for, evaluate the fees and finance charges to find the least expensive option.
  • If you’re worried your credit score isn’t good enough, consider a card designed for users with poor credit.

Takeaway

Buy now, pay later apps are a great way to stretch out the repayment of your purchases. In most cases, you can pay for the items in four to six installments for a small fee. The six BNPL apps reviewed here are among the most popular; compare them to decide which one is best for you.

  • If you’re worried your credit score isn’t good enough, consider a card designed for users with poor credit.

Cynthia Bowman and Amber Barkley contributed to the reporting for this article.

  • What apps let you buy now and pay later?

  • There are several BNPL apps, including Afterpay, Klarna, Affirm and Zip.

  • What is the best buy now, pay later program?

  • If you’re looking to use BNPL on a large purchase, consider PayPal’s Pay in 4. If you’d like a longer repayment term, Affirm is worth a look. For a BNPL service you can use just about anywhere, take a look at Zip.

  • Ultimately, the best BNPL app is the one with the terms that best match what you need.

  • Which buy now, pay later app can you use anywhere?

  • Zip may be the most flexible BNPL app. You can use it to pay bills and anywhere Visa is accepted.

  • Which buy now, pay later doesn’t check credit?

  • Afterpay, Zip, Splitit and many other BNPL apps do not check your credit score.

  • There are several BNPL apps, including Afterpay, Klarna, Affirm and Zip.

  • If you’re looking to use BNPL on a large purchase, consider PayPal’s Pay in 4. If you’d like a longer repayment term, Affirm is worth a look. For a BNPL service you can use just about anywhere, take a look at Zip.

  • Ultimately, the best BNPL app is the one with the terms that best match what you need.

  • Zip may be the most flexible BNPL app. You can use it to pay bills and anywhere Visa is accepted.

  • Afterpay, Zip, Splitit and many other BNPL apps do not check your credit score.

Rates and fees are accurate as of Dec. 22, 2022, and are subject to change.