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. Apple Pay Later — Best for Apple Enthusiasts

Apple Pay Later was introduced to the US market on March 28, 2023, and fully released on Oct 25, 2023. This makes Apple Pay Later the newest Buy Now, Pay Later provider in this list. This is also the reason why it has no options for long-term financing yet.

Apple Pay Later allows you to split a purchase (between $75 and $1,000) into four equal payments at 0% interest. The first payment is due immediately, and the three remaining payments will be paid over six weeks.

Requirements

Unfortunately, Apple Pay Later comes last in terms of ease of access. Here are the relatively strict application requirements for Apple Pay Later:

1. Be at least 18 years old
2. Be a U.S. citizen or a lawful resident with a physical U.S. address (not a PO Box)
3. Set up Apple Pay with an eligible debit card on your device. (prepaid debit cards aren’t accepted)
4. Set up two-factor authentication for your Apple ID
5. Update to the latest version of iOS or iPadOS
6. Verify your identity through a text message, Driver’s License, or State-issued photo ID

Additional Services

Apple Pay Later doesn’t have any additional services, but since it’s an extension of Apple Pay, it benefits from a lot of the latter’s features. Being able to pay with your iPhone or Apple Watch is one such feature. Apple Pay being accepted by 85% of U.S. retailers is another great perk.

In terms of credit building, Apple Pay Later may report your payment history to the credit bureaus.

Payment Rescheduling

Apple Pay Later doesn’t allow you to reschedule your payment due dates. It is, however, possible to qualify for hardship assistance by contacting an Apple Pay Later Specialist through the Wallet App or Apple’s Support Page.

2. 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 is more accessible than Apple Pay Later but it still 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.

3. 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 it doesn’t require you 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).

4. Afterpay — Best for Payment Rescheduling

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

While its Monthly Plan APR is slightly higher than Sezzle’s, it does offer a lower maximum late fee of $8.

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. To purchase goods and services using Afterpay at non-partner brick-and-mortar stores, you’ll need to qualify for the Afterpay Plus Card.

Unfortunately, the Afterpay Plus Card is only available to select customers. And even those who are eligible for this service need to pay $5.99 per month to use the Afterpay Plus Card.

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 reschedule the due date (up to 7 days) of the second and third installments of Pay-in-4 orders.

To change the due date using the Afterpay App, you’ll need to do the following steps:

1. Log into the Afterpay App
2. Select “My Afterpay”
3. Select “Orders”
4. Select a Payment to Change
5. Select “More”
6. Select “Change next payment date”
7. Select your preferred date

To change the due date using the Afterpay Website, you’ll need to do the following steps:

1. Log into your Account
2. Click “Upcoming Payments”
3. Select a Payment to Change
4. Click “Change Next Payment Date”
5. Select your preferred date

Payments that are already overdue or about to be due in 24 hours cannot be moved. New users (less than 42 days since your first purchase) and those under a hardship repayment arrangement can’t use this feature.

5. Affirm — Best for Fee Avoidance

Affirm prides itself as 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. But its APR can get as low as 0% for those with excellent credit.

Requirements

Affirm’s 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 and 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.

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.

For iPhone and Apple Watch users, however, there’s no reason not to take advantage of Apple Pay Later’s service.

While those who travel often will probably want a Zip Account for their sheer number of partner merchants.

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

Afterpay is the most lenient when it comes to rescheduling due dates. So those looking for that feature should look no further.

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