Buy now, pay later (BNPL) services have seen explosive growth in recent years, with major players like Afterpay, Klarna, and Affirm becoming household names. These services allow shoppers to split their purchases into smaller installments paid over time, often with no interest. For many consumers, BNPL offers a convenient way to afford larger purchases and manage cash flow.
In fact, according to a 2022 report by GlobalData, the global BNPL market is expected to surge by nearly 40% annually to reach over $437 billion by 2027. The report found that BNPL users are primarily younger consumers, with 75% of global BNPL users under the age of 44. However, usage is growing across all age groups.
With stats like these, it‘s no surprise that a growing number of retailers are jumping on the BNPL bandwagon—including major players like Amazon, Target, and Walmart. If you‘re a frequent Walmart shopper, you may be wondering what buy now, pay later options you have and whether the retail giant accepts popular services like Afterpay.
Let‘s take a closer look at the BNPL landscape at Walmart, along with some expert insights and tips for using these services strategically.
Does Walmart Accept Afterpay?
First, the question on many shoppers‘ minds: Does Walmart take Afterpay? Unfortunately, the answer is no. As of 2023, Afterpay is not accepted as a payment method at Walmart stores or on Walmart.com.
However, that doesn‘t mean you‘re out of luck if you‘re looking to use buy now, pay later at Walmart. The company has partnered with several other major BNPL providers to give customers a range of flexible payment options.
Affirm: Walmart‘s Primary BNPL Partner
Currently, Affirm is Walmart‘s primary buy now, pay later partner. Through Affirm, eligible shoppers can split their purchases into fixed monthly payments over 3-24 months, with interest rates ranging from 0-30% APR depending on creditworthiness.
One advantage of Affirm is that it allows you to preview your payment schedule and interest rate before finalizing your purchase, with no impact to your credit score. Affirm also reports your payments to Experian, so on-time payments could help build your credit history over time.
However, Affirm does require a credit check for approval, and not all shoppers will qualify for 0% APR financing. According to Affirm‘s website, their interest rates depend on a number of factors including credit score, payment term length, and purchase amount. For larger purchases or longer terms, interest can add up quickly.
To use Affirm at Walmart.com, simply choose it as your payment method at checkout and complete the short application. For in-store purchases, you can apply for a virtual Affirm card ahead of time using their app or website.
More BNPL Options at Walmart
In addition to Affirm, Walmart also accepts several other popular buy now, pay later services, giving shoppers more flexibility and choice.
Zip (formerly Quadpay) allows you to split your purchase into 4 interest-free payments paid over 6 weeks. There are no credit checks required, making it an accessible option for most consumers. To use Zip in-store, you‘ll need to download the app and generate a virtual card to provide at checkout.
Similarly, Klarna‘s "Pay in 4" service breaks your purchase into 4 payments every 2 weeks, with no credit check or interest. Klarna can be used when shopping online at Walmart.com or in-store using the Klarna app.
PayPal‘s Pay in 4 option is also accepted for online purchases at Walmart.com, allowing you to split your total into 4 interest-free payments made every 2 weeks. Currently, PayPal‘s BNPL service is not available for in-store Walmart purchases.
| BNPL Service | Term Length | Interest | Credit Check | Walmart Use |
|---|---|---|---|---|
| Affirm | 3-24 months | 0-30% APR | Soft check | Online & in-store |
| Zip/Quadpay | 6 weeks | 0% | None | Online & in-store |
| Klarna | 6 weeks | 0% | None | Online & in-store |
| PayPal Pay in 4 | 6 weeks | 0% | None | Online only |
It‘s important to note that while Quadpay, Klarna, and PayPal don‘t require a formal credit check, they do assess customer risk based on factors like your linked bank account and past payment history with their service. Missed BNPL payments or a pattern of late payments could lead to account freezes or rejections for future financing.
Pros and Cons of Using Buy Now, Pay Later
So, is using buy now, pay later at Walmart a smart move? As with any financial decision, there are potential benefits and drawbacks to consider.
On the plus side, BNPL can provide much-needed payment flexibility and allow you to afford necessary purchases you might otherwise have to put off. For some consumers, it can be a helpful budgeting tool.
Splitting a large purchase into smaller chunks can feel more manageable than paying the full amount upfront or putting it on a credit card. And if you‘re able to secure a 0% interest BNPL plan and make your payments on time, you can avoid finance charges altogether.
However, consumer advocates and financial experts have raised concerns that the rise of BNPL is encouraging some shoppers—particularly younger consumers—to take on more debt than they can comfortably handle. A 2022 survey by Lending Tree found that 42% of buy now, pay later users have made a late payment at some point.
There are also worries that BNPL‘s rapid growth is outpacing regulatory oversight. In December 2022, the Consumer Financial Protection Bureau (CFPB) launched an inquiry into the business practices of 5 major BNPL companies, citing concerns about accumulating debt, regulatory arbitrage, and data harvesting.
"Buy now, pay later is a rapidly growing type of loan that serves as a close substitute for credit cards," said CFPB Director Rohit Chopra in a press release. "We will be working to ensure that borrowers have similar protections, regardless of whether they use a credit card or a Buy Now, Pay Later loan."
Ultimately, whether BNPL makes sense for you depends on your unique financial situation and money management style. Here are a few tips from personal finance pros on using BNPL responsibly:
- Stick to a budget: Just like credit cards, BNPL can tempt you to overspend. Be sure to factor your scheduled payments into your monthly budget to avoid taking on more than you can truly afford.
- Set reminders and autopay: With multiple BNPL loans, it can be easy for due dates to slip through the cracks. Set calendar reminders or enable autopay so you never miss an installment.
- Understand the fine print: Don‘t skip reading the terms and conditions in the excitement of financing a new purchase. Look out for potential fees, interest rates, and other requirements.
- Keep an eye on your credit: If a BNPL service reports payments to the credit bureaus, late or missed payments could potentially ding your credit scores. Check your credit report regularly and dispute any errors.
Other Financing and Payment Options at Walmart
Buy now, pay later isn‘t the only way to finance your Walmart purchases or better manage your cash flow. Here are a few other options to consider:
Walmart Credit Card: The Capital One Walmart Rewards Card offers 5% cash back on purchases at Walmart.com, 2% back on in-store purchases, and 2% back on travel and restaurants. New cardholders also get 5% back in Walmart stores for the first 12 months when using Walmart Pay. Just be mindful that the card‘s 17.99% – 26.99% APR is much higher than some BNPL services.
Walmart Layaway: For in-store purchases, Walmart‘s layaway program allows you to pay for eligible items over time with no credit check. You‘ll put down 10-20% upfront and pay the remaining balance before picking up your items. Walmart waives their usual $5-10 layaway fee during the holidays.
Walmart Pay & Other Digital Wallets: If you‘re looking to streamline your checkout experience, Walmart Pay allows you to store your payment info (including some BNPL services) and pay with a QR code scan in-store. Other digital wallets like Apple Pay and Google Pay are also accepted.
Expert Insights on the Future of BNPL
As buy now, pay later continues its rapid growth and more major retailers like Walmart jump on board, where is the industry headed? We asked a few retail and consumer behavior experts to weigh in.
"BNPL‘s surge in popularity, especially among Millennial and Gen Z consumers, reflects a growing desire for flexibility and control in the shopping experience," says Jane McMurray, a retail trends analyst. "For younger shoppers who may be wary of traditional credit, BNPL can feel like a lower-stakes entry point to financing."
However, McMurray notes that as BNPL matures, providers will need to balance growth with responsible lending practices to avoid regulatory backlash. "I expect we‘ll see BNPL platforms investing more in consumer education, transparent disclosures, and proactive credit reporting to get ahead of potential concerns," she predicts.
Retail futurist Nick Avera believes that while BNPL is having a moment, rumors of the credit card‘s demise are exaggerated. "BNPL is certainly a useful tool in the consumer financing toolkit, but it‘s not a one-size-fits-all solution," he says.
"Credit cards still offer unparalleled benefits like consumer protections, rewards points, and the ability to extend payments over a longer period," Avera points out. "I expect credit cards and BNPL will learn to coexist, with savvy consumers leveraging both options strategically."
Avera also predicts an expansion of in-store BNPL availability as a growing number of brick-and-mortar retailers aim to replicate the seamless financing experience shoppers have come to expect online. "We‘ll likely see more BNPL tie-ins with retailer loyalty programs and personalized financing offers based on customer data," he says.
As for what the future holds at Walmart, retail analyst Jessica Harmon thinks the company will continue to embrace BNPL‘s potential, both as a sales driver and a customer loyalty play. "Walmart has a huge global footprint, with e-commerce operations in over 20 countries," she notes. "I wouldn‘t be surprised to see them expand and localize their BNPL partnerships in key growth markets."
Harmon also believes Walmart could explore its own spin on buy now, pay later to further integrate flexible payments into the shopping experience. "Affirm has been a successful partner, but never underestimate Walmart‘s willingness to experiment with in-house solutions to retain control over the customer relationship," she says.
The Bottom Line: Should You BNPL at Walmart?
While it may be disappointing that Walmart doesn‘t offer Afterpay (at least not yet), the retail giant has clearly embraced the buy now, pay later trend through partnerships with Affirm and other top providers. For shoppers seeking flexibility, BNPL can expand your payment options, whether you‘re shopping online at Walmart.com or in-store.
However, as with any financial decision, it‘s important to think through the pros and cons of buy now, pay later and determine whether it makes sense for your situation. BNPL can be a useful budgeting tool, but it‘s not free money. You‘ll still need to ensure you can make your scheduled payments with room to spare.
Before you BNPL, explore alternative options like cash-back credit cards, Walmart‘s layaway program, or good old-fashioned saving up. And if you do opt for buy now, pay later, be sure to use it thoughtfully and keep track of your installments to stay on top of your finances.
With the right approach, Walmart‘s expanding buy now, pay later options could add a welcome dose of flexibility to your shopping experience. By doing your research and using BNPL strategically, you can enjoy the best of both worlds: the convenience of immediate fulfillment and the peace of mind of paying over time.
