8 Best Buy Now, Pay Later Apps 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’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%.

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.

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.

• 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 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.

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.

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.

• 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+)

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).

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.

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).

• 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 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.

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.

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.

• 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 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%.

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.

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.

• 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

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.

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.

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

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

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.

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.

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.

• 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 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.

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.

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.