Buy now, pay later (BNPL) services have exploded in popularity by allowing shoppers to split payments over time with instant approval and no credit checks. As a small business financial consultant, I‘ve assisted many ecommerce merchants and consumers in navigating the growing BNPL industry. Here‘s an in-depth look at the top BNPL providers and how to choose wisely.
Overview of the Top Buy Now, Pay Later Companies
The BNPL sector is projected to grow 3-fold to $552 billion in transaction volume by 2025 (1). Below I overview features, fees, and target demographics of the leading platforms:
Affirm – Known for transparency with fixed fees and terms clearly disclosed upfront. Recommended for bigger purchases.
Klarna – Lets customers pay in 4 interest-free installments or try products first then pay in 30 days. Excellent for convenience-focused shoppers.
Afterpay – Empowers budget-conscious spenders to pay in 4 equal installments over 6 weeks. No late fees on first missed payment.
Sezzle – Offers customized payment plans over 6 weeks with total transparency on fees charged. Ideal for younger, income-constrained shoppers.
Splitit – Uniquely uses your existing credit card for installment plans placing temporary holds on your balance. Best for credit card rewards maximizers.
PayPal Pay in 4 – Easy integration for PayPal‘s over 40 million users in the U.S. Facilitates 4 straightforward installment payments.
Perpay – Combines flexible BNPL and financial literacy tools like educational resources and tips. Perfect for first-time BNPL users.
Zip – Divides payments over 4 interest-free installments across 6 weeks with a smooth mobile experience. One of the fastest growing BNPL apps.
ViaBill – Focuses on predictable 4-part payment schedules over 2 months for budget-conscious consumers. Offers an affordable BNPL solution.
Laybuy – Provides flexible 6 week, interest-free payment plans with no credit checks. Top choice for simplifying big ticket purchases.
Openpay – Tailors installment plans to every shopper‘s budget and offers a rapidly expanding merchant network. Ideal one-stop BNPL solution.
FuturePay – Easy-to-understand terms focused on affordability and inclusion to empower all shoppers. Rapidly increasing adoption among smaller retailers.
PayBright – Seamless checkout and financing for existing members within their large BNPL network spanning over 9,000 merchant partners (2). Top pick for an end-to-end solution.
Expert Tips for Consumers on Using BNPL Responsibly
BNPL can be a great alternative to credit cards but requires responsible use. Here are my top 5 tips as a financial consultant:
- Closely review repayment terms so you know exactly what to expect
- Map out a payment plan aligned with your budget before making BNPL purchases
- Avoid using multiple BNPL providers together to prevent overextension
- Mark clear payment reminders on your calendar and pay on time
- Contact customer service ASAP if you foresee issues making payments
The Advantages of Integrating BNPL for Online Retailers
Offering flexible financing is proven to lift conversion rates and order values. Here are 5 reasons I recommend merchants add BNPL:
- Higher average order values (20-30% is common)
- Increased conversion rates (10-30% lift)
- Expanded customer reach by removing affordability barriers
- Lower cart abandonment thanks to transparent financing options
- Competitive edge to keep up with major retailers adopting BNPL
With surging adoption among both consumers and businesses, BNPL is fundamentally changing how we shop. Let me know if you have any other questions!
