Popular BNPL Corporations
Affirm
Affirm has worked with several well-known businesses, like Pottery Barn and Expedia, and may offer customers the option at checkout of a short-term 0% interest deal or as long as 12 months with an APR ranging from 10% to 30% dependent on creditworthiness. There are no late fees, prepayment penalties, or interest rates for deferred payments. Suppose the shop you want to buy from isn’t already an Affirm partner. In that case, you can acquire a virtual card number from Affirm and use it to make your purchase, then pay Affirm back using the payment plan you chose.
Afterpay
Through its app, Afterpay provides a short-term installment plan. You use the free app to purchase your item with a virtual credit card number, then make the first of four payments over six weeks. Afterpay will limit the amount of credit they will give you so that you do not overextend yourself. Make your payments to them on time, or your account will be stopped, and you may be charged late fees of up to 25% of the purchase price of the item.
Klarna
Klarna features an interest-free ‘Pay in 4’ plan that allows customers to divide any purchase into four monthly payments. They also offer a “Pay in 30” plan on some goods. If the merchant you’re shopping with isn’t already a Klarna partner, you can download the Klarna app and use it to make an online purchase. You will be charged a late fee of up to $7 if you miss or skip one of your four payments.
However, if you’re on a “No Interest If Paid In Full” plan and can’t make a payment, you’ll be charged delayed interest on the entire transaction at a rate of 19.99 percent APR.
PayPal Credit
PayPal Credit, formerly known as Bill Me Later, offers installment options on $99 or more purchases with no interest if paid in full within six months. Unlike some of the other BNPL programs, PayPal Credit is a line of credit granted by Synchrony Bank, meaning approval will be subject to a rigorous credit check.
Suppose you do not pay your balance in full. In that case, you will be charged delayed interest at a rate of 23.99 percent variable APR on the entire amount of your transactions.
Zip
Zip provides a six-week payment plan in four installments. You’ll pay 25% of the entire amount of the transaction upfront using your associated debit or credit card, with the remaining payments divided into three installments due two weeks apart. If you make your payments in full and on time, Zip will not charge you any interest or fees.
If you pay late, you will be charged a late fee of $5, $7, or $10, depending on where you live.