BNPL providers like Affirm, Klarna, Afterpay, Sezzle, and Zip have been rapidly growing in terms of new features. While this is a net positive change for most users, rapidly changing platforms make it a lot more difficult to choose the right provider for your needs.
The long and the short of it is that:
- Affirm doesn’t charge late fees and provides free, high-yield savings accounts.
- Afterpay provides a $600 pre-approved spending limit to all customers.
- Klarna has the best short-term installment loan options (in addition to Pay in 4).
- Sezzle is a good choice if you want to build your credit with Buy Now, Pay Later payments.
- Zip is the most flexible in terms of rescheduling due dates.
Major Differences Between BNPL Providers
Affirm’s biggest advantage over other BNPL providers is that it doesn’t charge any late fees. While Klarna charges up to $7 in late fees for its BNPL plans and up to $35 for its long-term financing plans. Zip charges up to $7.50 in installment fees, and Afterpay charges up to $8 in late fees.
Afterpay allows users to extend their due dates thrice yearly for up to five days. On the other hand, Zip allows users to keep rescheduling their due dates in exchange for a $2 rescheduling fee.
Klarna has more payment options than Affirm, and getting approved for a loan from Klarna is easier. In fact, Affirm often declines loan applications for first-time customers. Affirm is stricter when evaluating creditworthiness since it takes a bigger risk by not charging late fees.
Sezzle stands out as the only BNPL provider that reports to the three major credit bureaus in the US. Although it’s possible to build your credit score with the other BNPL providers by paying your BNPL orders with the Cushion Debit Card.
When and Where were the BNPL Companies Founded?
- Affirm was founded in San Francisco, California, in 2012.
- Afterpay was founded in Sydney, Australia, in 2014.
- Klarna was founded in Stockholm, Sweden, in 2005.
- Sezzle was founded in 2016 and is headquartered in Minneapolis, Minnesota.
- Zip was founded in Australia in 2013.
Countries of Operation of Each BNPL Provider
- Affirm operates in the U.S., U.S. territories, and Canada.
- Afterpay operates in the U.S., Canada, the United Kingdom, and New Zealand.
- Klarna operates in the U.S., Great Britain, Sweden, Norway, Finland, Denmark, Germany, Austria, the Netherlands, Belgium, and Switzerland.
- Sezzle operates in the U.S., Canada, Austria, Belgium, France, Germany, Italy, the Netherlands, Spain, and the United Kingdom.*
- Zip Pay operates in Australia, Canada, the Czech Republic, India, Mexico, New Zealand, the Philippines, Poland, Saudi Arabia, South Africa, UAE, and the United States.
💡 Note: The Sezzle Virtual Card can only be used in the U.S. and U.S. Territories.
Number of Partner Merchants Worldwide for Each BNPL Provider
- Affirm has 245,000+ partner merchants
- Afterpay has 100,000+ partner merchants
- Klarna has 450,000+ partner merchants
- Sezzle has 78,000+ partner merchants
- Zip has 79,000+ partner merchants
What are the Payment Options Available for Each BNPL Provider?
- Affirm offers Pay in 4 and Pay Monthly Plans.
- Afterpay offers Pay in 4 plans.
- Klarna offers Pay in 4, Pay Now, Pay in 30 Days, and Pay Over Time plans.
- Sezzle offers Pay in 4, Pay in 2, and Pay Monthy plans.
- Zip offers Pay in 4 Plans.
Which BNPL Providers Allow Rescheduled Payments?
- Afterpay allows users to extend their due dates for up to five days thrice yearly.
- Klarna allows users to extend their due date by seven days, once per order.
- Zip allows users to reschedule their due date for free once a month. You can reschedule due dates more than once per month, but you’ll need to pay a $2 fee for each of the succeeding rescheduled due dates.
- Sezzle allows users to reschedule a single payment for free on each order. Succeeding rescheduled due dates will cost up to $7.50 in rescheduling fees.
Which BNPL Providers Report to the Credit Bureaus?
Among the BNPL providers in this list, only Sezzle reports to the credit bureaus through Sezzle Up. If you want to build your credit with the other BNPL providers, then you’ll need the help of a third-party app like Cushion.
