You may have seen the proliferation of buy now pay later (BNPL) platforms at online store checkouts if you do a lot of shopping there. The concept of making payments over time, or “layaway,” is not new, but these platforms bring it into the 21st century. Also, the shift’s rationale is self-evident if you give it some thought. Hence, with buy now pay later platforms, you can spread out your payback without being stung by an interest percentage, unlike with credit cards. Read on to find out the best global buy now pay later platforms market along with the virtual card.
Overview
Customers can make purchases on a “buy now, pay later” (BNPL) basis instead of making a complete payment at the time of the transaction. Customers can also get instant financing for their purchases and pay it back in regular installments over time. A buyer who spends $100 can split the cost into four equal interest-free payments of $25 each. In addition, many companies, notably e-commerce shops, employ buy now, pay later services like Affirm, Afterpay, and Klarna to boost conversion, AOV, and customer acquisition. Hence, with these options, buyers can get instant financing for their purchases and pay it back in equal amounts over time.
Best Buy Now Pay Later Platforms
Selecting appropriate Buy Now, Pay Later (BNPL) platforms can assist in cost savings. Numerous retailers have established partnerships with Buy Now Pay Later (BNPL) platforms to streamline the process of online purchases for consumers. Buy Now Pay Later (BNPL) platforms function similarly to credit cards as they enable users to purchase items and pay for them in installments over time. One significant distinction is that numerous entities do not levy interest provided that you fulfill the scheduled payments. The following Buy Now Pay Later (BNPL) platforms are user-friendly, feature nominal fees and interest rates, and offer credit limits suitable for routine purchases. Our team conducted extensive research and analysis on over 20 prominent buy now, pay later platforms to identify the best platforms. Presented below are some of the most noteworthy Buy Now Pay Later (BNPL) platforms that are currently available.
#1. Affirm
Since there are no hidden costs or late fees, this is our top pick for a buy now, pay later app. Affirm charges simple interest if applicable, so the amount you pay does not increase over time.
#2. Afterpay
This is the greatest option for borrowers who have a history of timely payments, are looking for a small loan that won’t hurt their credit, and need money quickly. The only thing the company does is offer a payment plan with four equal payments over six weeks. At the time of purchase, you pay a 25% down payment and the balance 80% over the next six weeks. Hence, with Afterpay, you can borrow as much money as you need. How long you’ve been an Afterpay customer and how reliably you make payments both affect your credit limit. If this is your first time using Afterpay, your limit may be lower than it would be for a returning customer, so you may need to limit your purchases to less expensive things while you build up your credit history. Only $150 is the typical order amount on Afterpay.
#3. Wisetack
Wisetack enables organizations to provide open billing choices for subscription services. The software integrates with your existing website and checkout process to let you sell subscription boxes and streaming services on installment plans to your clients. Wisetack BNPL (Buy Now, Pay Later) is a financing solution for online retailers that allows customers to spread out the cost of their purchases over time. Wisetack BNPL allows businesses to incorporate flexible payment plans for their clients, which can boost customer retention and revenue.
Businesses can benefit from Wisetack BNPL in a number of ways, including increased sales and better cash flow, because customers are more likely to complete their purchases if they can pay for them over time. Wisetack BNPL also provides helpful data on customers’ spending habits that companies can use to enhance stock management, advertising, and other areas of their operations. If an online store wants to boost revenue, keep consumers coming back, and attract new ones, Wisetack BNPL is a solution worth considering.
#4. Splitit
When compared to other BNPL applications and sites, this one takes a rather novel approach. Users of Splitit don’t take out loans, but rather divide up payments on preexisting credit accounts, like credit cards.Splitit creates a temporary pending charge on your credit card for each purchase you make. As you make payments, Splitit will gradually lower the outstanding balance. Splitit does not charge users any interest or fees, but it is advisable to pay off your credit card debt in full every month to avoid paying interest. A positive balance is a must for credit card users. You have no right to use debit cards.
#5. Zip
This mobile app has an average rating of 4.4 on both Google Play and the App Store. You can use Zip anyplace Visa is accepted and there will be no influence on your credit score. The payback period on this site was the shortest of those we looked at. Customers who use this service can spread out the cost of their purchase over six weeks by making four equal payments. Customers trying to take out a loan to make a significant purchase may find this difficult.
#6. Klarna
Swedish finance firm Klarna provides BNPL options to 90 million customers across 17 countries. You can use the Klarna app at no cost whenever you shop in the app, in stores, or online, and then choose it as your payment method at checkout. When you sign up for Klarna, the company does not verify your credit, but it does perform a soft credit check when you make a transaction. The good news is that this means using Klarna will never have an impact on your credit rating.
Additionally, Klarna provides three distinct payment schedules. The standard payment schedule entails four equal installments due every two weeks following purchase; however, a 30-day payment delay and a monthly payment schedule are also available. Klarna doesn’t charge interest, but there is a late fee if you’re late with a payment.
You may want to see: BUY NOW PAY LATER COMPANIES 2023: All You Need to Know
Buy Now Pay Later Virtual Card
The buy now pay later virtual card include the following:
#1. PayPal
Users can split the cost of a purchase into four equal payments over a period of six weeks with this Buy Now Pay Later Virtual Card, with the first installment due at the time of purchase. PayPal is an excellent fee-free alternative because it does not assess interest or late penalties. BNPL app restrictions include: Transactions must be $30–$1,500. This strategy only works at stores that accept PayPal, but millions of stores do.
#2. Uplift
As a result, companies can now facilitate travel-related financial transactions. Uplift can help your travel-related e-commerce firm attract more clients by allowing them to make payments over time. You can extend payment periods anywhere from six weeks to 24 months for transaction sums as high as $25,000. There is no need to send the buyer to a separate payment page because everything is handled within the purchase flow itself.
Also, with Uplift, you can give your customers an easy method to reserve a trip right away and pay for it in installments. You may encourage more bookings without worrying about losing money on late payments or prepayments. Your customers may now give the gift of a visit to your website by using the Uplift platform.
#3. Four
Using this Buy Now, Pay Later Virtual Card, stores may accept payments from customers using services like Google Wallet and Apple Pay. Customers can sign up for the platform and organize their payments without ever leaving your site. Instead, it provides a “buy now” button that keeps clients on your site as they complete their purchases, which can boost repeat business and cut down on cart abandonment. It works with many popular digital wallets like Apple Pay and Google Wallet to streamline the checkout process for your business.
Also, with Four, you can personalize their panel and checkout to go in with the rest of your site’s design, increasing the likelihood that customers will purchase from you.
#4. Humm
Customers can divide up very expensive purchases by using this Buy Now Pay Later Virtual Card. Your consumers can also use this BNPL to make large purchases, as advertised on the Humm website. You can use their services to divide up any purchase up to $30,000. Customers who need more time to pay can choose from payment plans ranging from 5 to 10 bi-weekly installments to as long as 60 months for larger purchases. Humm promises to pay you in full, on the dot, the very following business day. For a tiny company that counts on these kinds of transactions, this can have a major impact. Additionally, Humm will reimburse your business for their fee on returned items if a client brings them back to you.
#5. Sunbit
Sunbit offers a payment solution that enables customers to conveniently break down payments for their basic amenities. This Buy Now, Pay Later Virtual Card distinguishes itself from other virtual cards by facilitating payment alternatives for personal services such as auto service, eye doctor appointments, or veterinary services, rather than solely focusing on merchants selling irrelevant items. It also assists in mitigating the financial impact of crucial amenities for your clientele.
One of the key benefits is that your business will gain a competitive edge by being able to provide services to customers who may have poor credit. Sunbit assists enterprises in rendering essential services to their clients by making them more cost-effective. This buys now pay later virtual card facilitates the provision of extended payment options to customers, allowing them to pay for services valued at up to $10,000 throughout 3 to 12 months.
#6. ZipCo
The global acceptance of American Express, Discover, and Visa credit cards makes Zip Co a practical choice for enterprises. So, if your company takes American Express, Discover, or Visa, Zip Co can help you accept payments from customers all over the world. The platform also features a customer base that may be leveraged to increase foot traffic. That is to say, if you can accept payments from customers all around the world, you should expect a high average order value. Furthermore, with Zip Co, you can put your consumers first by offering them manageable installment plans that won’t harm their credit. Customers can choose their convenient payback frequency (weekly, bimonthly, or monthly) with Zip Co. Your company will be paid on the same day by the supplier when a customer chooses to pay in installments for an order.
What Alternatives Are There to Afterpay?
They include:
- Affirm.
- Zip.
- Splitit.
- GoCardless.
- PayPal.
Who Uses Buy Now Pay Later the Most?
Younger generations, namely Gen Z and Millennials, tend to utilize Buy Now Pay Later (BNPL) services with greater frequency compared to their older counterparts. When it comes to Buy Now Pay Later (BNPL) purchases in the United States, clothing emerges as the top item of choice. On average, individuals who have utilized the Buy Now Pay Later (BNPL) service owe a sum of $883. According to recent data, a significant percentage (57%) of individuals in the United States who have used the Buy Now, Pay Later (BNPL) method to complete their purchases have expressed regret over their decision.
Can You Pay a Bill With Afterpay?
Afterpay payments can be made either online or in-store. Thus, you should not use it to settle debts such as your electricity bill, phone plan, life insurance policy, or auto loan.
What Is the Most Popular BNPL in the US?
Although Klarna has a significant presence in the United States, PayPal Credit remains the most widely used BNPL (Buy Now Pay Later) service.
In a NutShell
The trend of using buy now, pay later platforms is on the rise among consumers. Hence, by providing interest-free loans and simplified repayment systems, individuals can avoid financial difficulties.
References
- bankbonus.com
- stripe.com
- investopedia.com
- cnbc.com
- lendingtree.com
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