The top 6 buy now, pay later apps of 2024

Many retailers have partnered with buy now, pay later providers to give consumers the option to repay the cost of a product in equal installments — often at 0 percent interest — rather than paying for it all at once. With these apps, you’ll apply at the point of sale and, if approved, you choose the repayment option and complete your purchase.

BNPL plans can be a good financial tool to help you budget for a large expense that you don’t have enough cash to pay for. However, they also make it easier to buy things you don’t need, which could hurt your financial health over time.

The best buy now, pay later apps

Affirm: Best quick and easy buy now, pay later option

Affirm is a buy now, pay later option that offers fast online and in-person approvals for purchases as small as $50. It’s accepted at more than 102,000 retailers nationwide, and the four-installment payment plan is interest free. Longer repayment periods are available for bigger ticket items, but interest rates may be as high as 36 percent, depending on your credit.

Pros

• Accessible online or via the mobile app (for in-person purchases)
• No interest charges on purchases made using Affirm Pay in 4
• Build credit with monthly payment option
• No late payment penalties

Cons

• Only one-repayment option is available with no interest charges
• Purchases made with the longer monthly payment options could be subject to interest
• High number of CFPB complaints
• Payments made on Affirm Pay in 4 can’t help build your credit

Afterpay: No minimum loan amount

Afterpay is another buy now, pay later app with no advertised minimum amount, which comes in handy if you just need a little extra time to pay off a small purchase. You’ll pay over six weeks in four interest-free installments the plan can be used for online purchases or at participating retail locations using the virtual card.

Afterpay also offers a reward program with extra benefits when you pay one of its installment plans in full. For purchases over $400 you can choose a 12-month repayment schedule, but you’ll pay an interest rate up to 35.99 percent based on your credit profile.

Pros

• No interest on purchases for the six-week plan
• Soft pull when applying for an account won’t hurt your credit
• Shop online or in-store
• Earn rewards by shopping with Afterpay and paying on time

Cons

• Late payment penalty of up to 25 percent of the purchase amount
• No phone customer service is available
• Only one interest-free plan is offered
• Does not help build credit, as timely payments aren’t reported to the credit bureaus

Klarna: Best for a wide variety of payment options

Klarna offers a no-interest 30-day and pay-in-four option, giving you more flexibility to tailor your purchase payments than other buy now, pay later plans reviewed by Bankrate. You can even choose a 24-month repayment period, but you’ll need to qualify and pay an interest rate based on your credit profile.

Klarna works with an impressive array of 500,000 retailers. You may be able to make larger purchases since the company doesn’t set a price maximum for its payment options (like PayPal, which caps you at a $1,500 price tag).

Pros

• More zero-interest options than other buy now, pay later apps
• The rewards program allows for discounts on purchase prices
• 24/7 chat customer support available

Cons

• Late fee if you miss a scheduled payment
• The interest-free options don’t help you build credit
• Very little published information about rates for longer-term options

PayPal Pay in 4: Best for wide range of merchants and products

You can use PayPay Pay in 4 to split up purchases between $30 and $1,500 to make them more affordable. Any merchant that offers PayPal can offer this option, giving you access to more products that can be paid for using its Pay in 4 program.

The first payment is due at the point of sale, and the remaining three are payable biweekly. This payment option has no sign-up fees or interest charges, and you won’t be subject to late payment penalties. If you need more time and don’t mind paying interest rates between 9.99 percent and 35.99 percent, the Pay Monthly option gives you six, 12 or 24 months to spread your payments.

Pros

• No interest charges or late payment fees on purchases
• Accepted at millions of online retailers
• No hard credit check required
• Includes purchase protection to keep your information secure

Cons

• Only available in select states
• Not accepted for in-store purchases
• Purchases capped at $1,500

Sezzle: Best no-interest plans for small purchases

Sezzle is the only buy now, pay later app we reviewed that offers a two-week repayment period for purchase prices as low as $10. If that doesn’t fit your budget, you can choose the standard four-payment six-week option other BNPL apps offer. If you need even more time, you can opt for a term of 48 months, assuming you qualify for the APR you’re offered based on your credit score.

Pros

• Two no-interest payment options
• Immediate spending power than can be increased as you complete each plan
• Longer term options with rates as low as 5.99 percent

Cons

• 25 percent down payment requirement
• May need to pay a monthly subscription for access to major name brands
• Very little information about how initial spending power is determined

Zip: Best for simple buy now, pay later plan

Zip only offers one four-payment plan that allows you to spread payment plans over six weeks. If you’re short on your paycheck but need to fill your gas tank or buy groceries, Zip’s $7.50 fee is much cheaper than the sky high APRs you’ll pay for a payday loan. There aren’t any other options which helps you avoid the temptation to spread a small expense over a longer time period, which always costs more over time.

Pros

• One easy-to-understand plan
• Payment due date flexibility
• Available at most merchants that accept VISA
• Highly rated app based on over a half million App Store reviews

Cons

• Only one repayment option is available
• Installment fee of up to $7.50 per order
• Late payment fee of $5 to $10
• Virtual card is only good for 14 days

Pros and cons of buy now, pay later apps

According to Bankrate’s Buy Now, Pay Later Survey, more than a third of U.S. adults (39 percent) have used at least one BNPL service. Most users (50 percent) said they chose BNPL plans to pay in installments or spread the cash flow. Unfortunately, that same survey showed that more than half of users (56 percent) have experienced at least one problem with a BNPL service, ranging from overspending to missing payments.

Evaluating the benefits and drawbacks can help you decide if this type of payment plan is best for your current budget and longer-term financial goals.

Pros

Consumers primarily choose buy, now pay later plans for two reasons:

• It helps them manage their monthly cash flow: With inflation outpacing pay increases, Americans may be more cautious about paying cash all at once for a purchase. Spreading a purchase out over six weeks helps keep more money in their account in between paychecks.
• There are no interest charges: Unlike a credit card, you won’t pay any interest or risk a drop in your credit score if you can’t pay the balance off quickly. Approval may be easier than a credit card or personal loan, given your credit score isn’t a factor in most cases.

Cons

Despite their streamlined application process and straightforward payment plans, these apps come with drawbacks.

• Makes overspending easier: Buy now, pay later plans may blur the lines between needs and wants. The potential for straining your budget and making purchases that you could later regret are two factors to keep in mind.
• Returning an item is more complicated: If you decide to send back an item bought with a BNPL plan, you’ll have to jump through more hoops to get your money back since you didn’t pay the retailer directly. To make matters more complex, each BNPL company has a different process and timeline to return your money.

How to compare apps

When evaluating buy now, pay later apps to find the best option, consider these factors:

• Availability: Find out whether the app can be used online and in stores, and if it’s limited to one or the other. Also research whether it can be used with the retailers you shop with.
• Spending power: Check if there are set spending limits with the BNPL company you’re considering. If so, look into whether your spending power can increase over time.
• Subscription and transaction fees: Some apps require subscription fees to shop with certain brands — question whether the app is worth the extra cost. Also look for late payment fees.
• Credit reporting: Find out whether late or on-time payments are reported to major credit bureaus.
• Interest rates: If you choose a longer repayment term, check the rates against similar apps and other financing options.
• Repayment terms: Some BNPL plans have more than one plan. Look at your budget and make sure you get the best for your budget.
• Refund policy: How long returns take, how quickly your spending power is returned and the process for returning the item may influence whether you want to use a certain BNPL company.

When to use buy now, pay later apps

The best time to use a buy now, pay later plan is if you need to cover the cost of a necessity without cleaning out your checking account. That could include back-to-school shopping for growing kids, a new set of winter tires or a new microwave if your current one is starting to fall apart from so much use.

Here are a few cases where buy now, pay later makes sense:

• You don’t have cash to pay for the full cost now: If your emergency fund is low, or you just need a few extra weeks to make a purchase before your next paycheck, a BNPL comes in handy.
• You can avoid using credit cards: Credit cards have average rates over 20 percent, and maxing them out can negatively affect your credit score. Most BNPL plans are interest free and you pay your purchase off in six weeks.
• You don’t qualify for low credit card or personal loan rates: Because these plans are generally for smaller dollar purchases, qualifying is much easier than personal loans or credit cards.

Alternatives to buy now, pay later apps

Always explore other ways to borrow money before settling on a buy now, pay later app. Here are some worth a look

• Personal loan: This installment debt product gives you an extended repayment period and potentially an affordable monthly payment. The best personal loan interest rates will go to those with strong credit scores, and start as low as 8 percent. But if your credit needs work, you could pay as much as 36 percent.
• 0 percent interest credit card: You can make interest-free purchases during the promotional APR period — typically between 12 and 24 months — with a 0 percent APR credit card. Be sure to pay the balance in full before it expires, though, or you’ll pay interest on the remaining balance.

Bottom line

A buy now, pay later plan can reduce financial stress if you need to make a purchase but don’t have cash on hand to pay for it all at once. The application process is often seamless and, if approved, you can start making purchases immediately.

To get the best deal, compare options before deciding which app to use. Consider whether the purchase is something you need, something you want but could do without or if a financing alternative, like a personal loan or 0 percent interest credit card, would be a better fit.

Methodology

• Methodology details

  The Bankrate team did a complete analysis of the features and services offered by the most well-known buy now, pay later apps in the industry. Then our experts developed a scoring system to rate these apps, focusing on three main areas:

  • Availability: We look at the minimum and maximum loan amounts offered by the apps, as well as the number of interest-free plans they offer. Apps offering more than one interest-free plan and those with the most flexible loan amounts rank higher in this category.
  • Affordability: We evaluate the APR ranges apps assess on purchases once the interest-free period ends. Additional fees, exclusive perks and discounts are also rated. Apps with the lowest APRs, fewer fees and more perks obtain the highest scores in this category.
  • Customer experience: Purchasing flexibility, as well as return, exchange and refund policies are vetted in this section. Mobile app rating, number of consumer complaints with the CFPB and customer support are also taken into account. Apps with more flexibility and lower complaints rate higher in this category.