Best Buy Now Pay Later Apps of December 2024

If you want to try the buy-now-pay-later alternative to paying all cash or with your credit card, which BNPL app is best to use? Some charge fees; others don’t. Read on for the details. And, as with any debt, proceed with caution and make sure you have the funds to cover your BNPL buys when the payments are due.

Our recommendations

Best for no late fees

PayPal

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Best for no late fees

PayPal

Fees

Pay-in-4: $0; Pay Monthly: Interest on APR

Why we like it:

While some BNPL apps charge late fees, PayPal’s Pay-in-4 and Pay Monthly do not. PayPal will send a reminder if a payment is late. If no payment is forthcoming after that, the account will go to PayPal’s collections agency. The latter process could impact your credit score. 

With its Pay Monthly service, which could give you up to 24 months to pay for an item, interest payments apply. Your APR with this payment option will range from 9.99% to 35.99%.

Best for a diverse range of goods and services

Affirm

Best for a diverse range of goods and services

Affirm

Fees

Pay-in-4: $0; Monthly plans: Interest on APR

Why we like it:

If you need to pay for a big purchase—such as furniture, a luxury trip, or a wedding—the fintech company Affirm, around since 2012, is a good choice. The purchase limit is $20,000 for qualified applicants.

The app offers two payment options: Pay in 4 and monthly payments. You won’t pay interest for Pay in 4 purchases, but you could end up with an APR as low as 0% or as high as 36% if you opt for monthly payments. Terms can be as long as 60 months, and no fees apply with either plan.

Best for a diverse range of goods and services

AfterPay

Best for a diverse range of goods and services

AfterPay

Fees

Monthly plans: 0% to 35.99% APR

Why we like it:

Ever craved a wall-mounted spillway for your yard? Afterpay is the place to buy one of those, or a skydiving experience, a pair of prescription glasses, Adidas clothing, Pottery Barn furnishings, and more. Some of Afterpay’s other retailer partners are Nike, Macy’s, Target, Colman, Igloo, Skydive San Diego, and Vego Garden Store.

You can choose to pay in four installments or monthly. You won’t pay interest with its Pay in 4 option, but you will with its monthly option—the APR is 6.99% to 35.99%. Monthly plans can be as long as 60 months.

Best for purchases from Black-owned businesses

Sezzle

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Best for purchases from Black-owned businesses

Sezzle

Fees

No late fee, but closes account after 48 hours for missed payment and then charges up to $15 to use Sezzle again. May also charge $5 when using a credit or debit card to make payments.**

Why we like it:

Sezzle is a fintech company founded in 2016 that offers a BNPL app that not only sells items from Black-owned businesses, but also features profiles of professionals affiliated with the goods. Available items include luxury clothes from designer Fe Noel, cruelty-free non-toxic personal-care products from PiperWai, and UNice Hair for wigs and hair products, as well as goods and services from big retailers including Walmart, Apple, and Kohl’s.

Sezzle introduced its Pay-in-2 program in 2023, which allows customers to pay 50% of their purchase at checkout and the balance two weeks later. It also offers a Pay-in-4 plan, which allows you to pay in four equal installments over six weeks, and a monthly pay option with terms of up to 48 months.

Best for organizing all BNPL payments and building credit

Cusion ai

Best for organizing all BNPL payments and building credit

Cusion ai

Fees

$4.99/mo for BNPL; $12.99 added bill payments and credit score services

Why we like it:

Cushion offers BNPL payment tracking, expense tracking, a virtual debit card, the opportunity to build credit, and other helpful features to keep your finances on track.

For a fee of $4.99 per month, it organizes all your BNPL loans and other bills in one place so you know when to pay them. For $12.99 per month, the company offers a debit card and may help you build credit by reporting to credit bureaus when you pay loans and bills on time.

Best for discounts

Klarna

Best for discounts

Klarna

Fees

Pay-in-4: $0; Monthly plan: Up to 33.9% APR; Klarna Card: $4.99/monthly fee (to avoid interest fees); Late fees for missed payments after 10 days

Why we like it:

The Sweden-based fintech Klarna is better known in Europe, but has gained a prominent place in the U.S. as a BNPL provider. Customers get a range of perks when they join the “rewards club,” which provides exclusive discounts and offers, and points toward purchases (these points expire); plus the Klarna Card, a Visa debit card. The company has also introduced Klarna Plus, a monthly subscription of $7.99, which offers double reward points and access to discounts from some of its partner vendors, such as Nike and Instacart. 

Users who opt for Pay in 4 and Pay in 30 don’t pay interest on purchases. However, if you get a monthly plan for larger-ticket items, you could end up with an APR of up to 33.9%.

Best Buy Now Pay Later apps compared

Our methodology

We examined the best BNPL apps by researching the attributes of each, including their ease of use, which merchants they have relationships with, whether they charge interest and a late fee, flexibility in paying off the balance, customer support, value for money, and online reviews.

How to choose the best BNPL app

The best BNPL app depends on your purchasing needs. If, for example, you are furnishing a home, Affirm and PayPal Monthly may work best, as they have business relationships with home-furnishing companies and high purchase limits. For smaller buys—clothing, makeup, household items, and the like—PayPal’s Pay-in-4 may be the way to go.

What is Buy Now Pay Later?

“Buy now, pay later” (BNPL) is an increasingly popular alternative to using credit cards to receive goods and services before you’ve paid in full for them. It allows you to buy in installments—either through an online or traditional retail company or by using one of the growing number of BNPL apps. The terms could be four equal installments over a short period of time (often six weeks) or, for larger-ticket items, payments spread out for as long as four years.

Since you receive your purchases before making full payment, you are in essence taking out a loan—incurring a debt—in which the BNPL plan you use sets the payment terms and may charge late fees if you’re delinquent on a payment. That’s why they’re also called “point-of-sale loans.”

• BNPL is different from a layaway plan because the shopper receives the goods or services after paying the first installment, whereas with a layaway plan, the shopper receives them only after paying the amount in full.
• And it’s different from using a credit card because, as long as you adhere to the payment schedule set up by the app (or retailer), you may not be charged interest on your unpaid balance. Note that longer-term loans could charge hefty interest rates.

Just how popular are BNPL plans?

In its 2023 holiday shopping trends report, Adobe reported that BNPL spending totaled $75 billion for the year, $9.4 billion more than in 2022. According to Juniper Research, the number of users will surpass 900 million globally by 2027, up from 360 million in 2022. Juniper also reported that the expected economic downturn has led to a demand for low-cost credit solutions, such as BNPL plans. And a May 2024 report from the Federal Reserve noted that 14% of U.S. households in 2023 had used BNPL, up from 12% the year before.

TIME Stamp: A BNPL loan is a debt, so be sure you can pay it back on time

If you choose to pay with a BNPL app, be sure that you can repay the loans when they are due. With the lower payments afforded through BNPL apps, consumers can lull themselves into thinking they don’t owe as much money as they do and potentially go into debt.

Also be aware that, unlike credit cards, BNPL apps don’t have consumer safeguards allowing cardholders to question charges and return items. These processes can be more difficult when using BNPL apps.

Frequently asked questions (FAQs)

Can buy now, pay later apps help you build credit?

BNPL apps generally don’t report to credit bureaus, so using them responsibly is unlikely to impact your credit score. But late payments may be reported and could impact your credit.

The Cushion app, though—which can help you organize your BNPL payments—offers a credit-building service to its customers for a fee of $12.99 a month. Almost all of the BNPL apps conduct soft credit checks, which do not impact your credit score.

What credit score do you need to use a buy now, pay later service?

There is no minimum credit score required to use a BNPL service.

Paypal vs. Afterpay: Which is better?

Both Paypal and Afterpay offer decent BNPL programs. However, Paypal offers more generous terms, such as a $1,500 vs. a $600 purchase limit, and 24-month vs. 12-month payment terms.