By Ashley Richmond
May 12, 2024May 12, 2024
Apps

In recent years, the rise of “Buy Now, Pay Later” (BNPL) services has revolutionized how consumers approach online shopping. By allowing shoppers to spread the cost of their purchases over a series of instalments, these platforms have made it easier than ever to manage budgets while enjoying the things we love. Klarna, one of the pioneers in this space, has gained widespread popularity for its user-friendly interface and flexible payment options. However, with the market for BNPL services expanding, several alternatives have emerged, offering their unique features and benefits. Here, we explore the top 6 apps like Klarna that provide similar BNPL options for savvy shoppers.

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About Klarna

Klarna, a Swedish financial services company, lets people buy things online and pay for them later (BNPL). It has more than 500,000 business partners in 45 countries and 150 million customers around the world. Klarna offers a number of ways to pay:

Pay in four equal payments over six weeks. Pay 25% of the total price when you buy the item, and the rest in three equal payments every two weeks. There is no interest on this, but there is a $7 late fee if you’re late.

You can pay in 30 days without interest: You can try things on before you buy them with this choice. Since it’s not broken or old, you can return it if it doesn’t fit.

You can pay for something over 6, 12, or 24 months. If you choose this method of payment, the interest rate is 17.9%, and there is a $7 late fee if you are late.

1. Affirm

Apps Like Affirm stands out as a leading app in the point-of-sale lending industry, having been founded in 2012 in San Francisco. With over 40 million customers and collaboration with more than 245k merchants, Affirm offers a seamless shopping experience.

Unlike traditional credit, Affirm allows customers to see the total cost upfront, eliminating surprises. Shoppers can choose between 4 interest-free payments every 2 weeks or monthly instalments with terms that can vary by merchant, including 3-, 6-, and 12-month options at 0-36% interest, making it an incredibly flexible option for those looking to manage their spending without incurring hidden fees.

2. Afterpay

Apps like Afterpay is another major player in the BNPL market, offering a straightforward four-payment plan that divides the purchase amount into four equal installments due every two weeks.

One of Afterpay’s distinguishing features is its strict no-interest policy, ensuring customers only pay the price of their purchase. The app also encourages responsible spending by setting sensible spending limits and suspending accounts that fail to make payments on time, thereby promoting financial discipline among its users.

3. PayPal Credit

While PayPal is widely known for its secure payment processing, PayPal Credit introduces a BNPL option that integrates seamlessly with the millions of stores that accept PayPal.

Offering 6 months of special financing on purchases of $99 or more, PayPal Credit provides a flexible and convenient way for shoppers to spread out their payments without interest, provided the balance is paid in full within the promotional period. Its widespread acceptance and the familiarity of the PayPal platform make it a go-to choice for many online shoppers.

4. Sezzle

Apps like Sezzle focuses on empowering shoppers to take control of their financial futures by offering interest-free payment plans. The platform divides the total purchase amount into four interest-free payments over six weeks, with no impact on the customer’s credit score if they pay on time.

Sezzle stands out for its commitment to financial empowerment, providing users with financial literacy resources. This approach not only makes shopping more accessible but also educates consumers about responsible spending.

5. Splitit

Splitit takes a unique approach to BNPL services by allowing customers to use their existing credit card to split their purchase into monthly payments, without the need for additional approvals.

This means shoppers can earn points and rewards on their credit cards while still enjoying the flexibility of instalment payments. With no interest, late fees, or application processes, Splitit offers a hassle-free way to leverage existing credit lines, making it an attractive option for those wanting to maximize the benefits of their credit cards.

6. Zip (formerly Quadpay)

Apps like Zip, known previously as Quadpay, allows users to split their purchases into four equal installments, payable every two weeks. What sets Zip apart is its flexibility; customers can use Zip at any online store that accepts Visa, offering unparalleled freedom in shopping choices.

Additionally, Zip provides a virtual card that can be used for in-store purchases, expanding the possibilities for BNPL beyond online shopping. With a simple and transparent fee structure, Zip is committed to providing a user-friendly experience without hidden costs.

Wrap Up

As BNPL services continue to grow in popularity, these platforms offer a range of options catering to different needs and preferences. Whether you’re looking for a service with a vast network of merchants, one that rewards financial responsibility, or a platform that integrates with your existing financial tools, there’s likely a BNPL service that fits the bill. By providing flexible payment options without the burden of traditional credit, these apps are redefining how we approach our shopping experience, making it more accessible and manageable for consumers everywhere.