“Buy now pay later” sites and applications have become popular in recent years. That comes as no surprise given the various options that they offer to assist people with their shopping needs, and in making things easier regarding payments.
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Klarna, founded way back in 2005 in Sweden, has grown to be one of the largest “buy now pay later” brands across Europe and Internationally.
Their primary aim was to make payments easier for people who often do their shopping online.
Klarna is now one of Europe’s largest banks and offers services across 17 countries, 200,000 merchants, and 85 million consumers.
The company’s buy-now-pay-later model is now very popular not just in Europe but also in the US. Shoppers get to enjoy flexible payment options, and even a chance to try before deciding to buy a product.
Klarna gives retailers an avenue to offload credit risk and at the same time take advantage of fewer abandoned carts and also higher-order values. So it’s a win-win situation for both merchants and customers.
Experts fear though that this model might put young consumers at risk of debt burdens, but clearly, the benefits of what Klarna and all these buy now pay later sites bring overwhelm the negatives.
As expected, the increasing popularity of this model has brought about a lot of competition. So here are some alternative sites and apps similar to Klarna.
Note that the ranking below is in no particular order.
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Afterpay is one other popular buy now pay later website. Their process stands out due to its simplicity and no-hassle transactions.
All you got to do is to browse your desired store online, choose a product, choose Afterpay as your payment method at checkout, and that’s it. Your account will be created in an instant.
You will then be given the chance to pay in 4 interest-free installments which are due every two weeks.
You will have nothing extra to pay, zero interest, no additional fees whatsoever (if you pay on time ofcourse, otherwise there are fees involved if you are late in your payments).
You also won’t have any forms to fill out, your order will be approved instantly and your order shipped out.
See how easy that is? No wonder people are easily adapting to this process. The spaced-out smaller payments just make it convenient for everyone and you can purchase important things that you’d not otherwise afford to do so.
Sezzle is another site that you can use to make shopping easier for you. Similar to AfterPay, they also offer simple, interest-free payments in installments. The difference is they break down the total cost of your purchase in smaller payments then spread it across six weeks.
As low as 25% is due upon purchase and the remaining amount will be spread out equally in typically 3 payments of 2 weeks apart. No interest fees, no processing fees whatsoever as long as you then pay what’s due on time.
Just conveniently select Sezzle upon check out and create an account when necessary quickly. Your order will then be shipped out accordingly by the merchant. There will be text and email notifications for the payments.
We’re all familiar with how PayPal works, it’s one of the most utilized online payment systems in the world founded by Elon Musk.
It was only a matter of time until PayPal credit was born. This is the company’s very own buy now pay later system.
PayPal credit works a little bit differently, after spending over 99 pounds on a purchase, you’ll get 0% interest for that purchase for 4 months. And it’s quick and easy to start your own PayPal credit account.
Just fill out a quick application form then PayPal will decide on it almost immediately. After your application is approved a credit limit will be attached to your existing PayPal account for you to use it right away across thousands of stores.
They currently offer 0% interest on purchases over $99 for 6 months! You can also send money or do cash advance using PayPal credit, there will be a flat charge fee of 2.9% + $0.3 every transaction.
Affirm App is a buy now pay over time mobile app available on both Android and iOS. You can get exclusive offers of 0% APR with the app. They also promise no late fees, penalties, or any hidden costs. Here’s how it works.
When you make a purchase using the app a soft check on your credit score is done to assess your risk as a borrower. This check will not in any way affect your credit score. Once you pass the check then your credit score will determine your interest rate.
You may get an interest rate of 0% to 30% depending on your score. For the Affirm App, the 0% financing is only available on selected stores.
As a borrower, you will then generally have one year to pay the loan. You will not be charged extra for early payment. So a good credit score is essential for this application.
In some instances, you will be asked to pay about 10% to 50% of the cost of the item during purchase.
Quadpay is a buy now pay later application that you can conveniently use on either Android or iPhone devices. Quadpay really doesn’t do anything innovative in the whole purchasing process compared to the other apps in this article.
You are also allowed to pay your purchase over 6 weeks, split into 4 payments. You can pay anywhere on any merchant partners or as long as Visa is accepted. The approval process is also almost instantaneous with zero impact on your credit score.
Anyone older than 18 years old and living in the US can use Quadpay. You just need a verifiable mobile number and use a US credit or debit card when making purchases.
Splitit is another payment method solution that enables you to pay your purchases using your credit card by segregating the cost into fees and interest-free monthly payments. There wouldn’t be any registration or applications needed.
You can use either your credit or debit with some merchants only accepting the former. On both occasions, you will be asked to pay for the first split of the payment upon purchase. Then you’ll be charged accordingly monthly depending on the installment plan. Debit cards may be more restricted, aside from limited merchants, there can be a limit in total cost purchased, and permitted installments.
Splitit works for Visa and Mastercard.
Viabill’s process does not reinvent the wheel that much, there are just subtle differences to it. Perhaps a significant difference with how they do things is that they won’t do any credit score check and your loan will be instantly approved upon checkout.
You will be tasked to pay 25% of your total purchase first then 25% per succeeding months. Viabill does not charge any interest nor mandatory fees. You can sign up to Viabill via checkout on registered merchant’s websites. Viabill boasts to be favored by a lot of brands across multiple industries.
The PerPay App redefines convenience in a “buy now pay later” model a bit differently. PerPay does not check your credit score too. Their process requires you to create a PerPay profile then you will receive an estimate on your spending limit.
After that, you can browse their registered merchants on their marketplace. Add to cart, then apply for the reviewal process. Once approved, you’ll get an email that would contain the payment process and your order.
Items will then be shipped upon PerPay receiving your first payment. So, will that work for you? Is this process more convenient given that it’s more controlled or “organized”? Or does it get in the way of supposed fast and easy transactions? You decide.
Zebit will only require you to fill out a quick application form before getting approved and that only needs a few minutes.
Zebit will need to validate your identity and income but won’t need your FICO score. You just need to be 18 years old and above to avail of their services.
Zebit promises you access to all the latest products on their merchants, you’ll receive the product right away, 0% interest, no membership or late fees, no product repossession, and most of all, your total payments will never exceed the price of your purchase.
Zebit gives its customers a credit line of $2500 and they have a Zebitscore system that would determine your standing within the app. It does not affect your Zebitline.
Bread promises fast and easy online financing transactions in seconds. It’s one of those straightforward “buy now pay later” systems. Just go to the retailer’s site and use Bread for your purchase on checkout.
Bread may require you to fill out some basic information before you are given a rate and approved.
You need to choose your plan after processing your order, really simple. They have a member portal where you can do advance payments in and also to process your monthly payments in. You also have the option to set yourself up for auto-pay.
Partial.ly works a little bit differently. It is a platform that offers you as a merchant the chance for your clients to have automated payment plans.
It is a way to streamline your invoicing, control your collections, and improve your cash flow.
You’ll have convenient access to integrations to Freshbooks, Quickbooks, or Harvest. You’ll have the ability to create custom payment plans, automated payment plans, or manually process payments.
It offers flexibility for the customer too. Partial.ly is also available to customers should they want to make purchases using the usual buy now pay later model.
Fingerhut is one of the most popular options and has been helping people buy stuff easier than even before the era of computers let alone smartphones. So, they have the experience for sure.
Fingerhut covers a wide range of products from beddings to electronic devices. But perhaps Fingerhut is best known as the go-to “buy now pay later” provider of those who have poor credit scores.
Sure chances are you’ll get approved more with Fingerhut than with any other loan providers but it comes with higher interest rates or steep prices from their merchant partners that span across thousands of products.
You need to register for a Zip account to start making purchases using their platform. Then, you will be given the chance to tailor fit your payments to your lifestyle, which is quite nice. Purchases you make using Zip will be interest-free.
Zip’s model though works a bit differently. You’ll have 60 days to pay without acquiring any fees.
It works like an account, you’ll receive a statement with all your purchases on the first day of the month, and then you’ll have until the end of that month to pay the balance.
Meaning you won’t have to pay anything upon purchase and will have until the end of the next month to pay it all in full before incurring a $6 account fee (or pay a minimum of $40/month in repayments).
LimePay is another payment method model that gives merchants a competitive edge. This is actually a “pay now or pay later” model. LimePay allows the merchant themselves to own the checkout process instead of redirecting to 3rd party sites.
Upon checkout, the client is presented with two options, to pay upfront or pay in installments. When they choose the latter then they are given the option to customize their payment details. Customers won’t incur direct fees but will have to pay a maximum of $10 as a late fee.
PayitLater allows you to buy it now and pay for it later and offers payment method options for merchants too.
It’s also pretty straightforward. If you are purchasing a product, PayitLater’s system will just quickly credit scan you and approve your purchase without any long forms involved. Then they will split your payment into the next 4 weeks while communicating to you via email.
As a merchant, you will also be given the chance to set up live deferred payments for your valued customers.
Which Is Better, Klarna or Quadpay?
Klarna and Quadpay are both buy-now pay-later apps. They partner with retailers to allow you to split your purchase price into four equal payments.
For example, if you buy an electronic item, you won’t have to pay for it upfront. You can pay 25% of the price when you make the purchase, and then you will make three more equal payments.
Klarna also offers a plan where you can pay in 30 days, and you can also get 6- to 36-month financing. The only plan that charges interest is the financing over 6- to 36-month plans. Quadpay doesn’t offer this option. Quadpay only offers the plan where you pay four equal payments that are 25% of the price.
Klarna has been around longer, and it offers more flexibility because there are several different options. Quadpay only offers the four-pay plan.
If you want more versatility, you might prefer the Klarna plan. Otherwise, you should check which stores partner with each one, and choose the one that has the stores where you need to shop.
Is Sezzle Like Klarna?
Sezzle is similar to Klarna in that it offers people the opportunity to make four payments over six weeks when they purchase items.
However, it has a lower late fee, which is $10 and it can be waived. Both offer interest-free payments. They make their money by charging a fee to merchants who allow consumers to use their services. Klarna offers two additional plans, which is one major difference.
However, Sezzle can be used to build credit. People can sign up for Sezzle Up and have their on-time payments reported to the credit bureaus.
Does Klarna Build Credit?
Klarna does not build your credit. If you want to build credit, the buy-now pay-later programs are not going to help you out.
You should look at a credit building program, such as a secured credit card or another company. Klarna offers you installment payments where you can split the cost of your purchase into affordable payments.
Which Is Better Affirm or Klarna?
Affirm and Klarna are both programs that provide consumers with alternative options to pay for their purchases.
Affirm is a short-term lender that helps you pay for something over time. You can spread the cost out over between 6 and 36 months.
Klarna has three different plans. You can split the cost into four equal payments over six weeks, you can pay for your item 30 days after you buy it, and you can finance it over 6 to 36 months, similar to Affirm. The biggest difference is that Klarna offers you two interest-free options, which Affirm does not.
The interest rate for Affirm ranges from 0% to 30%, and Klarna charges you 19% for financing that is longer than six months.
Klarna has many more retailers that they partner with. In fact, they have over 190,000 retailers in 17 countries, while Affirm has 3,000 merchant partners.
Both do a soft credit check when you want to use their services, but Klarna will do a hard inquiry for their financing option.
Both Affirm and Klarna allow you to cancel orders and return items, but Affirm does not refund any paid interest on short-term financing. Klarna offers a full refund if you are using either of the interest-free choices.
They both offer similar services, and some of the products overlap, but which is best depends on what you are buying.
Affirm is a great choice if you want to make a larger purchase and spread it over three months. You can do this without hurting your credit score or paying interest.
However, Klarna partners with many more retailers, and it works great if you choose one of the interest-free options.
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