5 Best Sezzle Alternatives & Competitors

Sezzle stands out among BNPL providers thanks to Sezzle Up, which allows users to build their credit with their BNPL payments. Its APR (5.99% – 34.99%) for its Pay Monthly option isn’t the best, though.

Sezzle also charges Late Fees (up to $15), Rescheduling Fees (up to $7.50), and Convenience Fees (up to $1.50). If any of these are dealbreakers for you, then it’s probably time to find an alternative to Sezzle.

What are the Best BNPL Providers Like Sezzle?

Let’s start by comparing Sezzle’s APR and maximum fee with its top 5 competitors:

*Zip charges an installment fee instead of interest (up to $7.50)

Most of the listed BNPL providers are better than Sezzle in terms of Monthly Plan APR and fees. But how do they fare when it comes to ease of access, additional services, and due date flexibility?

1. Zip — Best for Widespread Acceptance

Zip claims the top one spot in PYMNTS’ BNPL Provider Rankings at the time of writing. Zip’s popularity is surprising because it’s the only BNPL provider in this list that charges installment fees for its Pay-in-4 loans.

However, its popularity could be explained by the fact that over 80,000 merchants accept it. Not to mention the ‘Zip Anywhere’ feature that allows you to use a virtual card for merchants that don’t offer the ‘Buy with Zip’ service.

Zip’s installment fees start at $4 for purchases that cost $99.99 or lower, $5 for purchases that cost up to $199.99, and $6 for purchases costing $200 and above.

Requirements

Zip requires identity verification as well as a valid US mailing address. Here are all the requirements for a Zip application:

1. Be at least 18 years old
2. Live in the US
3. Have a valid and verifiable mobile number
4. Use a US credit or debit card to make a purchase
5. Have a valid US mailing address (not an APO, FPO, AE PO, or PO Box)

Additional Services

The ‘Zip Anywhere’ service allows you to purchase products from brick-and-mortar stores that haven’t partnered with Zip. This is made possible by a virtual card number provided by the Zip app that’s associated with a virtual card.

Each virtual card provided by this service is single-use. You’ll need to acquire a new virtual card number for each purchase.

In terms of credit building, Zip currently doesn’t report to the credit bureaus. However, Accounts with payments that are past due for an extended period will be sent to collections. When this happens, your delinquency will be reported to the credit bureaus.

Payment Rescheduling

Zip allows you to reschedule your due dates like Sezzle. The first time you move a due date, every month is free. After that, you’ll need to pay a $2 fee each time you reschedule a payment.

Moving a due date in Zip isn’t instant, though. There’s a 24 delay before the changes take effect. And while there’s a 7-day grace period before you get hit with a late penalty, it’s important to keep in mind that you’ll need to move a due date at least a day before the grace period ends.

Keep in mind that the succeeding installment dates (if there are any) will also be adjusted if you do decide to use this feature.

2. Klarna — Best Short-Term Loans

Klarna has roughly 20,000 US partner stores, which isn’t ideal. However, it offers the same one-time virtual card service that Zip offers to make up the difference.

Klarna’s main advantage over other BNPL providers in this list is its interest-free Pay-in-4 and Pay-in-30 days options. These payment options also have 0 fees, assuming you pay them on time.

But if you don’t pay an installment 10 days after its due date, you’ll be charged a late fee of up to $7, which is 47% lower than Sezzle’s maximum late fee of $15.

Requirements

In terms of accessibility, Klarna is better than Zip since you don’t need to have a valid US mailing address. However, users with a negative credit history are going to have a more difficult time applying for a Klarna account.

Here are the eligibility requirements for Klarna:

1. Be at least 18 years old
2. Live in the US
3. Have a valid and verifiable mobile number
4. Have a valid bank card/bank account
5. Have a positive credit history

Additional Services

Klarna Plus costs $7.99 per month, and it allows users to shop using Klarna’s one-time card service without paying service fees. In addition, Klarna Plus subscribers enjoy double the amount of reward points and are offered exclusive deals like a $30 discount on select brands.

As mentioned earlier, you can still use Klarna to purchase products or services from non-partner merchants by using a one-time use virtual card. This card expires within 24 hours of its creation and it can be canceled at any time as long as it hasn’t been used.

This card can be used at any store that accepts Visa as a payment method. A flat service fee is charged when using this card for short-term loans, and an appropriate APR is charged for long-term loans.

In terms of credit building, Klarna currently doesn’t report to the credit bureaus. However, missed payments and unpaid debts are sent to debt collection. When this happens, your delinquencies will be reported to the credit bureaus.

Payment Rescheduling

Klarna allows users to extend their due date by 7 days, once per order. This can be done by going to the ‘Purchases’ section of the app and selecting ‘Manage Payments’ on the order that you want to reschedule.

Extending the due date of an order will also reschedule any subsequent payments (if there are any).

3. Afterpay — Best for Pre-Approved Spending Limits

Afterpay was launched in the US in 2018, and it stands out among the BNPL providers on this list thanks to its financial hardship policy. Afterpay offers the same 0% interest Pay-in-4 loan as Klarna.

While its Monthly Plan APR is slightly higher than Sezzle’s, it does offer a lower maximum late fee of $8. Afterpay also has a default pre-approved spending limit of $600 for all its customers.

Requirements

Afterpay is quite accessible to those who are interested in short-term loans. But those looking for a Pay Monthly option and access to Virtual Cards have to pass additional requirements.

Here are the eligibility requirements for Afterpay:

1. Be at least 18 years old
2. Live in the US
3. Be capable of entering into a legally binding contract
4. Have a valid and verifiable email address and mobile telephone number
5. Provide a valid delivery address in the United States
6. Be authorized to use a US-issued debit or credit card
7. Verify your identity through various methods (Monthly Payments)
8. Verify your identity and pass eligibility checks (Afterpay Card)

Additional Services

The Afterpay Card is a virtual debit card that allows users to purchase products in-store at Aftepay partner merchants. Before it was shut down in April 2024, the Afterpay Plus Card could be used to purchase goods and services using Afterpay at non-partner brick-and-mortar stores.

One of the best features of Afterpay is its financial hardship assistance. If you’re facing financial hardship due to a natural disaster, unemployment, domestic violence, or illness, you can reach out to Afterpay using this Hardship Support Form.

Payment Rescheduling

Afterpay allows users to extend their due dates for up to five days thrice yearly.

4. Affirm — Best for Fee Avoidance

Affirm prides itself on being a BNPL provider that doesn’t charge late fees. In fact, it has reportedly helped users avoid paying $231 million worth of late fees from July 2016 to June 2023.

This means that Affirm’s Pay-in-4 loans are essentially risk-free since you don’t have to pay any interest or fees. Affirm also claims that its pay-in-4 option won’t affect your credit score.

Affirm’s monthly payment option, on the other hand, has a higher maximum APR than Sezzle. However, its APR can get as low as 0% for those with excellent credit.

Requirements

Affirm may seem incredibly accessible at first glance, but it’s relatively strict when it comes to evaluating your credit history. But since they make a point to never charge a late fee, it’s only natural that they do their due diligence.

Here are the eligibility requirements of Affirm:

1. Be at least 18 years old (19 if you’re a ward of the state in Nebraska)
2. Live in the US
3. Have a Social Security number
4. Have a valid and verifiable mobile number

Additional Services

The Affirm Card is a physical and virtual debit card that allows you to purchase products or services from brick-and-mortar stores using Affirm. This card can be used at any store that accepts Visa as a payment method. You can then split eligible purchases into short-term or long-term installments.

Affirm also offers a free, high annual percentage yield savings account. At 4.35% APY, no minimum deposit, and, of course, 0 fees, there is very little downside to opening an Affirm Savings account. Keep in mind that this is a variable rate account, so your APY may go up or down depending on overall market conditions.

In terms of credit building, Affirm only reports your first monthly installment loan to Experian. All succeeding monthly installment loans after that will go unreported unless they become 30 days overdue. This means that Affirm purchases aren’t a reliable way to build credit.

Payment Rescheduling

Affirm doesn’t allow its users to reschedule their due dates.

5. PayPal Pay in 4 — Best for Purchase Protection

Paypal has its own BNPL service, which is aptly named PayPal Pay in 4. Aside from being accepted by millions of merchants worldwide, PayPal Pay in 4’s best perk is most likely its purchase protection program.

Paypal’s purchase protection allows consumers to be eligible for a full refund if they didn’t receive the item or if they were sent the wrong item.

PayPal Pay in 4 is available for purchases that range from $30 to $1,500. And like most pay-in-4 payment plans, it has 0% APR. PayPal Pay in 4 also doesn’t charge any fees.

Requirements

Here are the eligibility requirements of PayPal Pay in 4:

1. Be at least 18 years old
2. Have a PayPal Account that’s in good standing
3. Read PayPal’s Loan Agreement

Additional Services

Paypal also offers a Pay Monthly plan for purchases that range from $199 to $10,000. You can choose to pay for your eligible purchases in 6, 12, or 24 payments. PayPal’s Pay Monthly plan has a variable APR that ranges from 9.99% to 35.99%. Just like the Pay in 4 plan, Pay Monthly includes purchase protection, and it doesn’t charge any late fees.

Payment Rescheduling

PayPal doesn’t allow users to reschedule their due dates. But you can make extra or unscheduled payments.

Related article: Can You Use Sezzle on Amazon?

Summary

If you want to build credit with your BNPL payments, Sezzle Up is still the best option unless you want to use third-party apps like Cushion.

Those who travel often will probably want a Zip Account because of the sheer number of partner merchants.

If you’re primarily looking for short-term installment loans, Klarna has the best options.

Afterpay has a default $600 spend limit, so it’s best for those who other providers often give low spend limits.

Finally, Affirm is great for those who hate late fees and love high-yield savings accounts.