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8 Best Buy Now, Pay Later Apps For Merchants

Adding one of these popular BNPL apps to your store may make it less scary for customers to make larger purchases, reduce cart abandonment, and generally increase your sales.

    Shannon Vissers
  • Last updated onUpdated

  • Chris Motola
  • REVIEWED BY

    Chris Motola

    Senior Staff Writer

Advertiser Disclosure: Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity.

Buy now, pay later allows your customers to pay for a purchase in installments—without your business taking on any of the risks of in-house financing. When small businesses accept buy now, pay later (BNPL) payments from a service like Klarna or Afterpay, they provide an alternative payment option that lets the customer pay over time. Whether your business lives online or you provide in-person services, buy now, pay later can help you achieve a sale even when the customer isn’t able to pay in full.

But what are the best buy now, pay later services for merchants? Below, we’ll take a look at the best BNPL apps for different types of small businesses and talk about how merchants can get started with BNPL.

Learn More About Our Top Picks

CompanyBest ForNext StepsBest For
Affirm

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  • Merchant fee: 5.99% + $0.30
  • Soft credit check
  • No late fees
  • Merchant fee: 5.99% + $0.30
  • Soft credit check
  • No late fees

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Klarna

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  • Merchant fee: Not disclosed
  • Soft or hard credit check
  • Late fees up to 25% of purchase amount
  • Merchant fee: Not disclosed
  • Soft or hard credit check
  • Late fees up to 25% of purchase amount

Visit Site

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PayPal Pay In 4

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  • Merchant fee: 3.49% plus a fixed fee
  • Soft credit check
  • No late fees
  • Merchant fee: 3.49% plus a fixed fee
  • Soft credit check
  • No late fees

Visit Site

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Afterpay

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  • Merchant fee: 6% + $0.30
  • Soft credit check
  • Late fees up to 25% of purchase amount
  • Merchant fee: 6% + $0.30
  • Soft credit check
  • Late fees up to 25% of purchase amount

Visit Site

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Sezzle

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  • Merchant fee: Not disclosed
  • Soft credit check
  • Various customer fees may be charged
  • Merchant fee: Not disclosed
  • Soft credit check
  • Various customer fees may be charged

Visit Site

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Sunbit

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  • Merchant fee: Not disclosed
  • Soft credit check
  • 0-35.99% APR
  • Merchant fee: Not disclosed
  • Soft credit check
  • 0-35.99% APR

Visit Site

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Wisetack

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Splitit

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  • Merchant fee: 1.5-6.5% + flat fee
  • No credit check
  • No fees for consumer
  • Merchant fee: 1.5-6.5% + flat fee
  • No credit check
  • No fees for consumer

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Read more below to learn why we chose these options.

Table of Contents

What Is Buy Now, Pay Later For Merchants?

For merchants, buy now pay later works similarly to accepting a credit card payment. Customers use a BNPL app to take out a small loan for a purchase at a business or online. The merchant accepting the BNPL payment at their store gets paid from the BNPL provider upfront, minus some merchant fees.

Merchants will need to sign up with a BNPL company in order to offer buy now, pay later as a payment option. Integrating buy now, pay later with your eCommerce website is easy, and some BNPLs can integrate with your POS system for in-person purchases.

Best Buy Now, Pay Later Apps For Small Business

What is the best buy now, pay later app for small businesses? It depends partly on what you sell, your POS or eComm software, and your customers’ habits. Different BNPL apps come with different terms, fees, and features, so it’s important to choose carefully when selecting the best BNPL for your business.

Affirm: Best Overall

Affirm


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Pros

  • Can be used online & in-person
  • Consumers never charged late fees
  • Merchants can control minimum qualifying customer spend
  • Merchants can control loan terms

Cons

  • Available only for shoppers who live in the U.S.
  • Confusing payment process for merchants
  • Late payments on larger loans may be reported to Experian

Why We Chose Affirm Buy Now Pay Later

Affirm is our choice for the best buy now, pay later app for any type of business, thanks to how versatile its loan repayment offerings are. Merchants have complete control over the minimum amount customers must spend to qualify for installment payments. You can also choose whether or not to offer 0% interest loan financing, how long customers have to repay their loans, and where to show Affirm payment messaging.

Also, Affirm now offers Adaptive Checkout, a unique checkout solution that updates a shopper's Affirm loan repayment options in real time as they add items to their cart.

With this dynamic technology, customers see their total purchase amount broken down into personalized installment payments throughout the shopping experience. At checkout, your customers won't feel shocked at their total, which will reduce cart abandonment rates.

Learn more about how businesses can use Affirm.

Affirm BNPL Features For Merchants

  • Loan offering amounts and repayment timelines set by merchants
  • Installment payments update in real time as cart balance changes
  • Online, in-person, and telesales businesses can use this BNPL option
  • Customers are never charged late fees for missed payments
  • Customers can apply for up to $25,000 in a single transaction.

Affirm Rates & Fees

Affirm’s standard merchant fee is 5.99% + $0.30 per transaction, although that fee can vary (depending on business size, risk profile, and program options).

Customers are not charged any late fees, interest, or other fees on Affirm’s standard 4-installment loans. On monthly loans, the APR is 0–36%.

Eligibility Requirements

Customers must meet the following requirements:

  • 18+ US resident
  • Have SSN
  • Have a US phone number that receives SMS

To apply for a loan at checkout, first-time Affirm users enter some personal information, including debit or credit card information. Affirm also does a soft credit check, which does not affect their credit score. Existing Affirm users just need to log onto their accounts. The loan application and approval process takes only seconds.

Repayment Terms

Installments are due either biweekly or monthly, depending on the repayment plan. If customers do the standard four-installment plan, the total loan term is six weeks. Monthly financing offerings range from three months to as long as 60 months.

Your customers will never be charged late fees, but late payments may impact their credit score and delinquent accounts may be sent to collections. To avoid such consequences, your customers can set up an automatic payment schedule.

Get Started With Affirm

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Klarna: Best For Fashion & Luxury

Klarna


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Pros

  • One of the most well-recognized BNPL apps
  • “Try before you buy” option ideal for fashion retailers
  • Multiple checkout options for online & in-person sales
  • Doesn’t report late payments to credit bureaus

Cons

  • Some complaints about customer service
  • Merchant fees not disclosed
  • High late fees for customers

Why We Chose Klarna BNPL

Klarna is a great option for businesses selling "nonessential" or luxury items online, in-store, or both. That's because Klarna's unique Pay in 30 Days financing option allows customers to try their items out for free, keep what they love, and return what they don't within 30 days of receiving their items. This low-pressure option makes customers more likely to complete their orders.

Klarna also offers express checkout buttons so that you can create a one-click checkout experience for your customers. The express checkout button carries an additional charge for merchants, but that fee may be worth it to reduce the amount of effort it takes customers to complete their purchases, and minimize the amount of time customers have to change their minds.

Learn more about how Klarna works for businesses.

Klarna Buy Now Pay Later Features For Merchants

  • Merchants have the choice to offer several types of repayment options
  • Customers can earn rewards whenever they shop with the Klarna app
  • Express checkout buttons make the shopping experience fast and easy
  • Pay In 30 option lets customers “try before you buy
  • Klarna partners with merchants to amplify their brands
  • No maximum loan amount—customer purchasing power depends on payment history and other factors

Klarna Rates & Fees

Klarna merchant fees vary depending on what payment option your customer chooses, and their location. Unfortunately, these fees are no longer disclosed on Klarna’s website.

As for customer fees, with the 4 Installments option, late fees are $7 per late payment, with compounding fees adding up to 25% of the purchase price. On longer-term consumer loans with monthly repayment, customers could be charged up to $35.00 per late payment, though the fee will not exceed the minimum amount due.

Eligibility Requirements

Customers must meet the following requirements:

  • 18+
  • Don’t have a lot of debt
  • Link your bank account

Klarna does a soft credit check on customers who choose to pay in four installments or 30 days. This will not affect their credit score. Customers who apply for long-term financing may undergo a hard credit check that shows up as an inquiry on their credit report.

Repayment Terms

Like many BNPL providers, customers have the option to pay in 4 interest-free installments charged every two weeks for a total term of six weeks, Klarna also has an interest-free 30-day financing option that gives customers up to 30 days to submit a single payment, as well as long-term financing (up to 36 months) with 7.99-29.99% interest. Customer financing installments are paid monthly.

Get Started With Klarna

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PayPal Pay Later: Best For PayPal Merchants

PayPal Pay In 4


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Pros

  • Free to add to your current PayPal payment setup
  • Built-in brand recognition and trust
  • No interest or late fees for your customers
  • Lower merchant fees than some other BNPL options

Cons

  • Reports late customer payments to credit bureaus
  • Limited to U.S. buyers and sellers (right now)
  • Not available in certain states

Why We Chose PayPal Pay Later

While PayPal was a little late to the pay later game, Pay Later has the clean, straightforward functionality that other BNPL companies sometimes lack. Pay Later is free for sellers who implement PayPal as a payment option in their online stores. US-based sellers who already have a one-time PayPal payment integration simply add Pay Later messaging. You also add a PayPal "Pay Later" button as another payment option at checkout.

From there, customers with an existing PayPal account can apply for Pay In 4 financing on purchases between $30 and $1,500, or Pay Monthly financing on transactions between $199 and $10,000. People who don't have PayPal can sign up and apply for financing. Customers are redirected to PayPal to apply and view loan terms. They are then approved or denied for a loan and redirected back to your site. This entire process takes only seconds.

PayPal Pay Later Features For Merchants

  • Pre-made PayPal financing marketing present throughout the shopping experience
  • Straightforward fees & repayment structure
  • Different payment options for smaller purchases (Pay-In-4) and larger purchases (Pay Monthly)
  • Includes purchase protection for your customers
  • Easy for existing PayPal Business users to add to payment options
  • Maximum borrowing amount of $10,000 (PayPal Credit can also be used for purchases $99+)

PayPal Pay Later Rates & Fees

To accept PayPal Pay Later at your business, merchants pay the standard PayPal digital payment processing fee of 3.49% + $0.49.

Customers are never charged late fees or interest (though as with some other BNPL apps, late payments may be reported to credit bureaus).

Eligibility Requirements

Customers must meet the following requirements:

  • Must be of legal age in your state of residence
  • Not available in certain states (check PayPal website to see if Pay In 4 is available in your state)

PayPal does a soft credit check on loan applicants and ensures that existing PayPal users are in good standing before approving them. Late payments can disqualify customers from PayPal Pay In 4 loans in the future.

Repayment Terms

For PayPal Pay-In-4, customers pay 25% of the purchase amount at checkout, and the remaining three installments are automatically charged to their PayPal account every 15 days, for a total repayment term of six weeks.

With PayPal Pay Monthly, customers can choose from 6, 12, or 24-month terms. Pay Monthly APRs range from 9.99-35.99% (4.99% APRs may also be available).

Get Started With PayPal Pay In 4

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Afterpay: Best For Square Merchants

Afterpay


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Pros

  • Integrates directly with Square POS & Square Online
  • Easy to add to Shopify store
  • Quick, easy setup
  • Does not report late payments to credit bureaus

Cons

  • Customers charged late fees
  • Some merchants may be denied

Why We Chose AfterPay Buy Now Pay Later

Afterpay is one of the easiest BNPL apps for merchants to implement in their store or on their website, especially for Square merchants. Afterpay has seamless built-in integration with Square, making it a piece of cake to offer BNPL right from your Square point of sale.

Square merchants can even order a free Afterpay marketing kit to let their customers know that they accept this BNPL payment option.

Afterpay is simple for customers to use and it's aimed at those who may have tarnished credit or no credit. Customers start out with a spending limit of $600 which is meant to encourage responsible spending habits. Learn more about how Afterpay works for small businesses.

AfterPay BNPL Features For Small Businesses

  • Easy to implement in-store or integrate with your eComm website
  • Pay-In-4 and Monthly Payment options
  • Customers can reschedule payments, shifting them up to 7 days (with Pay-In-4)
  • Spending limits start at $600 and increase with responsible spending behavior
  • Customers with bad credit are eligible
  • Digital card makes it easy for customers to make repeat purchases

Afterpay Rates & Fees

Afterpay merchants are charged a flat fee of 6% + $0.30 on each BNPL transaction.

Users are charged late fees if they forget to pay or are unable to pay. The fee is capped at 25% of the purchase amount. Users may also get charged insufficient funding fees from their banks if automatic Afterpay payments put them over their available account balances.

Eligibility Requirements

Afterpay requires the following from consumers applying for a loan:

  • 18+ US resident
  • Valid email, delivery address & phone number
  • Link a CC, debit card, or bank account

Afterpay may perform a soft credit check for new customers.

Repayment Terms

Afterpay’s standard term is 6 weeks, divided into four bi-weekly payments. Afterpay also has a Pay Monthly option that offers 6- and 12-month payments, plus interest, for purchases over $400.

Get Started With Afterpay

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Sezzle: Best For Gen Z eCommerce

Sezzle


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Pros

  • Large network includes 47,000+ retailers
  • Customers can reschedule payments up to three times
  • Sezzle Up option to improve customer credit scores through BNPL
  • Merchants may qualify for interest-bearing savings accounts

Cons

  • $15/month fee for businesses that process less than $300 in 30 days
  • Some lack of transparency regarding customer and merchant fees
  • Late payments can damage credit score

Why We Chose Sezzle BNPL

Based on the brands Sezzle partners with and the features they offer, Sezzle is ideal for online retailers targeting Gen Z customers. The company is a certified B Corporation because it focuses on offering transparent BNPL services, as well as financial education, with the mission to empower the next generation of shoppers. Sezzle gives customers every opportunity to avoid late fees, is highly responsive when customers have any issues, and allows younger shoppers to build their credit with their Sezzle Up program. Sezzle also works with all major eCommerce platforms.

Customers who sign up for Sezzle Up get their on-time installment payments reported to credit bureaus and increase their Sezzle credit limit over time. Other BNPL providers do not report on-time payments, so this is a unique, highly attractive feature. Though Sezzle doesn't yet offer in-store BNPL integrations, it probably won't be long until such a feature is added. Sezzle is known for its stellar merchant assistance services, so don't hesitate to ask for help if you need it.

Sezzle BNPL Features For Small Businesses

  • Free integrations with WordPress, WooCommerce, BigCommerce, Magento, Salesforce, Shopify Plus, and more
  • Multiple payment options include Pay In 4, Pay In Full, Pay In 2 (for monthly subscriptions), & long-term installment loans
  • On-time payments reported to credit bureaus to help customers build credit
  • Customers’ Sezzle credit limit increases over time (individual credit limits vary)
  • Named #1 Installment Payment Software by G2 in Fall 2021 for excellent customer service
  • Merchant interest-bearing plan offered in addition to standard direct deposit plan

Sezzle Rates & Fees

Sezzle charges a flat fee for each transaction, but these merchant fees are not disclosed. Businesses may also be charged a $15 monthly fee if they process less than $300 using Sezzle during a 30-day period.

If a customer can’t make a payment on time, they can change one due date for free. If needed, the next two due date changes will incur a fee. Customers may also be charged fees for using a credit or debit card to make their payment or if a payment fails because there isn’t enough money in their banking account to pay an installment. Fee amounts are not disclosed.

APRs on long-term installment loans (which may be available for some larger purchases) range from 5.99-34.99%.

Eligibility Requirements

Sezzle eligibility requirements are as follows:

  • 18+
  • Valid email & US or CA phone number that receives texts
  • Link CC or debit card

Applicants are subject to soft credit checks that will not affect their score; loan applications are approved in seconds.

Repayment Terms

Following the standard BNPL four-payments model, Sezzle Pay-In-4 customers pay 25% of their purchase upfront and the next three interest-free installments over the span of six weeks.

Other payment options for larger orders may be available through third-party lenders, with terms ranging from 3-48 months.

Get Started With Sezzle

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Sunbit: Best For Auto Repair Shops

Sunbit


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Pros

  • Geared toward large, essential purchases
  • Specifically catered to in-person businesses, especially auto repair shops
  • Works with merchants to create a customized BNPL solution
  • No late fees

Cons

  • Down payment is required
  • Merchants don’t know how much they’ll pay in fees until speaking to a Sunbit rep
  • Some merchants charged a monthly technology fee

Why We Chose Sunbit BNPL

Most BNPL apps are geared towards retailers selling "nonessential" items. Sunbit distinguishes itself by offering easy customer financing options for in-person services such as optical appointments, car repairs, or veterinary procedures. In fact, one in four auto dealership service centers in the U.S. offers Sunbit.

Sunbit's BNPL solution softens the potential financial blow of essential services for customers. It also gives Sunbit-equipped business owners a competitive edge and the ability to offer services to customers who may not have the best credit scores.

If you're interested in offering Sunbit to your customers, you can reach out to the company for a personalized quote.

Sunbit Buy Now Pay Later Features

  • Customers have access to larger essential purchases and add-ons
  • Dedicated account manager training on how to offer Sunbit services
  • Huge range of installment offerings available to suit your customers’ needs
  • Loans as large as $20,000
  • Customizable BNPL solution can include all or only part of purchase

Sunbit Rates & Fees

Since each BNPL solution is customized, you won’t have an idea of how much you’ll be paying in Sunbit merchant fees until you speak to a customer representative.

Interest rates on Sunbit consumer loans range from 0%-35.99%. Rates depend on where the customer lives, their credit situation, their loan amount, and their repayment timeline.

Eligibility Requirements

Customers may apply for a Sunbit loan at your store, online, or with the Sunbit app. Customers must meet the following requirements:

  • 18+
  • Have state-issued license or ID

The approval process does include a soft credit check and takes less than one minute. Approximately 90% of customers are pre-approved for some amount of credit. Customers then enter how much of that credit they’d like to use towards their purchase. For example, a customer may be approved for $2,000, but only need $600 to cover a car repair. They choose a loan repayment plan to pay off that $600, pay some amount of the purchase up front, and then pay the rest in monthly installments.

Repayment Terms

Customers may apply for a Sunbit loan ranging from $50-$20,000, with 3-72 month repayment options available.

Get Started With Sunbit

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Wisetack: Best For Home Service Industry

Wisetack


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Why We Chose WiseTack BNPL

Wisetack is a unique BNPL solution for home service providers to offer their customers 3-60 month financing plans, without taking on any financial risks. Wisetack sets you up with your own merchant portal, where you can see approved applications and check payment notifications. Wisetack pays you directly and works with your current order management software.

After the customer confirms their loan, you provide the service. Once the work is done, Wisetack sends your customer an email asking them to confirm that the job is done. You receive funds directly to your bank account within one to two business days after the client confirms the service is complete.

In addition to home services, businesses in other service industries like automotive, veterinary, dental, and medical can also use Wisetack.

Wisetack Buy Now Pay Later Features For Small Business

Features include:

  • Fast & easy application process for customers
  • Funds sent to your bank account next business day after work is complete
  • Wisetack takes on all financial risks that come with getting paid after a service is finished
  • Works with home service software including HouseCall Pro
  • Customers can pay off loans early

Wisetack Rates & Fees

Loan interest rates are 0-29.99% depending on the customer’s credit situation and loan repayment structure. Three-month loan repayment plans are interest-free.

On the merchant side, Wisetack takes out a 3.9% commission fee.

Eligibility Requirements

Wisetack doesn’t list any specific eligibility requirements on its website, but there is an application with a soft credit check, and customers with bad or fair credit may be accepted. Wisetack says they approve, on average, 88% of applicants with credit scores as low as 540.

Repayment Terms

Wisetack offers 3-60-month consumer financing plans. Your customers have the ability to set up automatic loan payments and pay off their loans early. They will not have to pay compound interest or late fees. They can also reschedule their monthly pay dates if needed.

Get Started With Wisetack

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Splitit: Best For Selling High-Ticket Items

Splitit


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Pros

  • Helps existing credit card users manage spending, build credit
  • No customer credit check or application
  • No fees for customers
  • Online and in-store BNPL options

Cons

  • Customers must have a Visa, Mastercard, Amex, or Discover credit card with available credit
  • Somewhat complicated implementation
  • Businesses must have $10 million in annual sales volume to qualify

Why We Chose Splitit BNPL

Many existing credit card users charge large purchases to their credit cards but rack up interest fees when they don't pay off their balances in full by the end of the month. Splitit offers credit card users a way to buy larger items now, but get their credit card charged in smaller, more manageable increments. Then, they'll be able to pay their monthly credit card balance off in full while building their credit.

When your customer checks out, they'll see Splitit as a payment option. They may choose to pay in installments through Splitit, and pay for some of the purchase up front.

Because Splitit makes sure customers can afford larger purchases by holding the money on a credit card, you have the peace of mind of knowing customers will be able to afford the big-ticket items they would normally purchase with a credit card.

Companies selling big-ticket items such as high-end furniture, jewelry, and electronics really benefit from offering Splitit online and in-store.

Splitit BNPL Features For Merchants

  • Merchants set minimum and maximum qualifying purchase amounts
  • Customers can earn credit card rewards on their purchases
  • No application — customers with an eligible credit card can simply select Splitit as a payment option
  • Integrates with major eCommerce platforms such as Magneto, Shopify, & WooCommerce
  • POS integration with Ingenico terminals
  • Short- and long-term repayment plans

Splitit Rates & Fees

Splitit charges merchants 1.5-6.5% per transaction, plus a flat fee.

Splitit does not charge customers any fees. However, if customers don’t pay their balance in full at the end of the month, they could be charged interest fees from their credit card issuer, as with any credit card balance.

Eligibility Requirements

Customers must meet the following requirements

  • 18+
  • Have an eligible credit card
  • Have enough available credit to cover full purchase amount

Customers do not have to undergo a credit check during the loan application process. However, Splitit does make sure that they have enough available balance on their credit card to cover the full balance of their transaction before being approved for a loan.

For example, if your customer wants to buy a $1,000 laptop, they must have at least $1,000 available on their credit card to cover the cost of the purchase. They may have to pay $200 upfront, and Splitit will put a preliminary hold of $800 on their card. Once they pay the next $200 installment, the hold reduces to $600, and so on, until the purchase is paid off.

Repayment Terms

Splitit installment options can range from 3-24 months, depending on the retailer. These are monthly installments and the customer must pay off their credit card balance every month.

Get Started With Splitit

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Our Methodology For Choosing The Best BNPL For Merchants

To select the best buy now pay later services for businesses, we evaluated the leading BNPL services and selected those BNPL apps with wide popularity, useful small business integrations, and reasonable fees for both merchants and consumers. We also further narrowed the list of vendors by choosing to include only services that have largely positive reviews.

Why We Don’t Recommend These BNPL Apps

Zip (Previously Quadpay)

Zip also offers interest-free pay in four installment options for customers.

With Zip, customers have more control over their repayment schedule. They can set up weekly, biweekly, or monthly payment plans.

However, customers are charged a monthly fee of $9.95 if they have an outstanding balance and an “establishment fee” of up to $99 on Zip Money lines of credit. They also have very low customer reviews, which is why Zip is not one of our top choices for BNPL providers.

What Are The Benefits Of Buy Now, Pay Later For Merchants?

BNPL has many benefits for merchants. Some of these include:

  • Encourages higher customer spend
  • Encourages customer loyalty
  • Popular with younger shoppers
  • Drives online purchases
  • More convenient and accessible than credit cards

Are There Drawbacks To Buy Now, Pay Later For Business?

There are also certain disadvantages to buy now, pay later apps for merchants. Some of these include:

  • Higher merchant fees compared to credit cards
  • Merchants have to apply to use service (and may not be accepted)
  • Slower checkout compared to credit card or contactless payment
  • Not all BNPL apps integrate with all commerce platforms
  • Carries some risk of fraud and chargebacks

BNPL For Small Business: FAQs

What is an advantage of buy now, pay later?

A major advantage of buy now, pay later is that it allows customers to make large purchases at your business, even if they don’t have a credit card. BNPL statistics show that this increases your customer base, your average customer spend, and your bottom line.

What are the pros and cons of buy now, pay later?

Some pros of buy now, pay later are that it offers your customers more ways to pay and makes your business more competitive with the many other businesses in your industry that already offer these services. Some cons of BNPL include the fees it costs merchants to implement BNPL and the fact that BNPL has a reputation for causing financial harm to younger consumers.

Why do customers like buy now, pay later?

Customers like buy now, pay later apps because they make large purchases more affordable and help you avoid credit card debt. BNPL is easier to get than a credit card, even if you have bad credit, and the repayments are simplified as well.

What's the biggest financial advantage of the BNPL program?

The biggest financial advantage of offering BNPL is that customers spend more at your business. For example, according to Affirm’s website, businesses who use Affirm report an 60% increase to their average order value after implementing the BNPL service, with a 20% repeat purchase rate among their customers who use Affirm.

What is the best buy now, pay later for merchants?

Affirm is the overall best buy now, pay later app for small and large businesses based in the US. The company offers eCommerce and in-store BNPL options for merchants. Customers can apply for interest-free short-term loans, as well as customer financing plans for larger purchases.

How does buy now, pay later work for businesses?

Businesses apply for and implement a BNPL app on their website or point of sale. This creates a link that your customers can use to apply for a BNPL loan if they so choose. If approved, the customer will pay for their purchase over time, but you as the merchant will typically see the full amount of the purchase in your account within 1-3 days of the purchase.

Is Sezzle like Afterpay?

Sezzle and Afterpay both allow your customers to pay off their purchases in four interest-free installments and offer longer-term financing as well. They also charge similar merchant fees.

As far as their differences, Afterpay does not help consumers build credit like Sezzle does, and Sezzle charges merchants a $15/month fee if they process less than $300 in a 30-day period.

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Shannon Vissers

Shannon Vissers

Lead Staff Writer: Payment Processing at Merchant Maverick
Shannon has been writing for Merchant Maverick about small business software and financing since 2015. She started writing professionally about business topics in 2005. Shannon has been featured in the Washington Post, Reader's Digest, US News, MSN, Yahoo Finance, Business Insider, and other publications. She has a bachelor's degree in English from San Diego State University and currently resides in San Diego, California.
Shannon Vissers
View Shannon Vissers's professional experience on LinkedIn.