Top 6 Buy Now Pay Later Platforms In The USA

In recent years, technology has revolutionized the way we shop. Gone are the days when we had to wait for days or even weeks to get our hands on the products we desired. With the advent of Buy Now Pay Later (BNPL) services, consumers in the United States can now enjoy a hassle-free shopping experience and the convenience of paying for their purchases in installments.

Buy Now, Pay Later, which is also abbreviated as BNPL, is a plan that allows shoppers to make purchases and defer the payment to a later date. The cost of your purchases will be divided into smaller amounts in equal installments, normally interest-free with minimum fees.

Buy Now Pay Later Companies USA

Buy Now Pay Later Apps In usa

There are numerous buy now pay later companies in the USA, but we are going to discuss the top seven of them where we’re going to emphasize on their repayment plans, fees etc. Let’s get started . 

1. Affirm

Overview

Affirm is one of the popular platforms that offers buy now pay later services in the USA. It was founded in 2012, and is based in San Francisco, California. It has over 12 million active subscribers. In our check, Affirm is good for both large and small scale purchases.

The company offers varieties of buy now pay later services such as monthly payment plans and pay in 4 plan. Affirm is affiliated with popular merchants such as Best Buy, Walmart, Amazon and Pottery Barn

Affirm Approval Check

For you to get approval for Affirm buy now pay later offer, the company will run a soft credit check on your credit report but your credit score won’t be affected. They may also check your past payment history with them like how long your Affirm account has lasted, whether you have unpaid loan with them among other few inquiries into your Affirm account. 

Affirm Repayment Plan

Affirm has different repayment plans like they have pay in 4 option, where the cost of your purchases will be divided into 4 equal installments and it is due bi-weekly, the first down payment is normally due at checkout. They also have another repayment plan where customers can repay in 3, 6 and 12 months. Not only that, they also have a longer repayment plan that may be up to 60 months.

Affirm Interest Rate And Interest Rate

Affirm’s pay in 4 option doesn’t have interest. However, there is an interest rate for the Affirm’s monthly plans which is between 0% – 36% Annual Percentage Rate(APR).

Affirm doesn’t charge hidden fees, there are no late fees or charges.

2. Klarna

Overview

Klarna is a public brand company that was founded in 2005. It operates in different countries like the United States, Sweden, Europe etc. It has over 400,000 merchants globally with over 147 million active users.

Interestingly, Klarna offers different payment plans to users such as monthly repayment option and pay in 4 financing option. The good news is that Klarna is accepted in most retailing stores such as Etsy, Macy’s, Sephora and Foot Locker.

Klarna Approval Check

Klarna will run a soft credit check on your credit report to determine your creditworthiness though the check won’t affect your credit score. The major criteria that Klarna uses in approving your application is the exact amount in your bank account, the product cost and your Klarna past history.

Klarna Repayment Plan

Klarna offers different repayment plans like Pay in 4 where your purchase cost will be divided into four equal parts. They also have pay in 30 financing option, where users are expected to repay their loan after 30 days their product was shipped to them. Additionally, Klarna has monthly repayment plans which range from 6 to 24 months.

Klarna Interest Rate And Late Fees

Klarna Pay in 4 and pay in 30 financing options doesn’t incur interest. However, their monthly repayment plans incurs interest which range from 0% – 29.99% Annual Percentage Rate(APR).

Klarna charges $7 late fees for late payment that is more than ten days behind schedule.

3. Afterpay

Overview

AfterPay was founded in 2014 and it is an Australian company that has branches in different countries across the globe like the United States, Australia, Canada, E.U, Zealand. U.k etc. It has over 144,000 merchants globally with over 20 million customers. AfterPay is most suitable for students because of its friendly policies. 

AfterPay offers multiple payment options to their customers like monthly repayment plans and pay in 4 option. The company is affiliated with popular merchants like Old Navy, Nordstrom, Gap, Bed Bath & Beyond etc to give their customers a good shopping experience.

AfterPay Approval Check

As a first-time user, for you to be able to get approval for AfterPay buy now pay later offer, the company will run a soft credit check on your credit report but your credit score won’t be affected. They may also check your card either credit or debit to know whether you have enough balance, not only that they will also check if you have an outstanding debt with the company and how long you have been with the platform. 

AfterPay Repayment Plan

AfterPay has different repayment plans like pay in 4 method and monthly repayment plan which could be either 6 or 12 months.

AfterPay Interest Rate And Late Fees

The company doesn’t charge interest for pay in 4 plan while their monthly plans incur interest which is normally between 0% – 35.99% Annual Percentage Rate(APR).

If you are able to repay your Afterpay on time, it doesn’t attract fees but if you fail to pay on time, it will attract a late fee of $8.

4. Apple Pay Later

Overview

Apple Pay was launched in the United States October 20, 2014, since its launch the platform has continued to gain acceptance in different countries of the world United Kingdom, Australia, Singapore etc. 

The platform offers pay in 4 repayment plan, the payment option is normally available in the retailing store than accepts Apple Pay in-app or online. Interestingly, their users can apply for Apple Pay Later plans via the Apple Wallet.

Apple Pay Later Approval Check

For you to get the Apple pay later offer, the company will run a soft credit check on your pay later application but it won’t affect your credit score. For now, that is the only criteria that Apple uses to determine those who are eligible for their pay later offer.

Apple Pay Later Repayment Plan

Apple only offers a pay in 4 repayment option, it involves dividing your purchase cost into four equal installments during the checkout.

Apple Pay Later Interest Rate And Late Fees

Apple doesn’t charge interest or late fees for their Pay Later offer.

5. Sezzle

Overview

Sezzle is one of the popular buy now pay later platforms that is based in   Minneapolis, Minnesota. It operates in different countries of the world such as the United States, Canada, Germany etc.  Currently, it has more than 45,000 merchants globally with over 3 million active customers.

Sezzle offers pay in 4 financing options both online and offline. There are over 45,000 retailing outlets where Sezzle is accepted as a payment option including Target.

Sezzle Approval Check

Sezzle may run a soft credit check on your credit report to determine your creditworthiness though this check won’t affect your credit score. They may also check your spending limit and your Sezzle account history.

Sezzle Repayment Plan

Sezzle only offers a pay in 4 financing option where your purchase cost will be divided into four equal installments that will be due bi-weekly, but your first down payment will be made at the checkout.

Sezzle Interest Rate And Late Fees

Pay in 4 financing options at Sezzle is interest-free.

Sezzle doesn’t charge late fees but may deactivate your Sezzle account after two days that you miss a payment. Once your account is deactivated, you may be charged $15 before your account will be reactivated again. 

6. PayPal

Overview

PayPal is an online peer-to-peer payment processing platform that allows their users to make purchases and defer the payment to a later date. Currently, their services are both in-store and online. They have millions of active users. It is best suitable for small purchases between the range of $30 to $1,500.

PayPal offers different financing options such as monthly payment option and pay in 4 plan. The company partners with different merchants like Target, GameStop,  Home Depot, Target etc. 

PayPal Approval Check 

PayPal may run a soft credit check for their pay in four financing option which won’t affect your crest score but may likely run a hard credit check on your credit report if you opt for their monthly financing option, the hard check may slightly affect your credit score. PayPal approval criteria is based on the information they got from credit bureaus, your PayPal account history and the information you filled in your loan application.

PayPal Repayment Plan

PayPal has different repayment plans such as pay in 4 plan where your product cost will be splitted into four equal installment. It also has a monthly repayment plan with six months, one year or two years terms.

PayPal Interest Rate And Late Fees

There are no interest fees for PayPal’s pay in 4 financing option but its monthly repayment plan comes with an interest charge that ranges between 9.99% – 29.99% Annual Percentage Rate(APR).

PayPal doesn’t charge late fees.

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