A Guide to The 7 Best Buy Now, Pay Later Apps – Including Klarna
Let’s take a journey back to a time not so long ago. You’re scrolling through your favorite online store, and there it is – that gadget you’ve been eyeing for months, finally back in stock.
But the timing couldn’t be worse, as payday is still a week away. In the past, this might have meant missing out or stretching your budget thin.
However, today things are different thanks to one revolutionary finance solution: Buy Now, Pay Later” (BNPL) services.
And in the forefront of this financial renaissance stands Klarna:
A payment service that lets you buy things online and pay for them later, either all at once after a month or in smaller parts over time. It’s like putting your shopping on a flexible payment plan, so you don’t have to pay everything upfront.
The digital marketplace is huge and hosts numerous other BNPL services like Klarna, each competing for attention with unique offerings and features. In this article, we will explore all the other apps like Klarna and see if there are even better payment services for your needs.
Get ready for an insightful journey into the world of BNPL services, where financial flexibility meets smart shopping.
BNPL is the Future of Shopping
The Buy Now, Pay Later service isn’t just a trend; it’s a global movement reshaping how consumers interact with retailers. The statistics speak for themselves: A 2021 report reveals that already 17% of consumers with a credit record are using BNPL apps, indicating a seismic shift in consumer payment preferences.
And in a world where flexibility is king, BNPL apps like Klarna offer a golden key to consumers. Shoppers can now manage their finances more effectively, purchasing without the immediate financial burden.
BNPL: A Win-Win for Consumers and Businesses
The BNPL model isn’t just a hit with consumers; it’s a boon for businesses too. Retailers partnering with BNPL services have observed a significant uptick in average order values and conversion rates.
The reason? BNPL options lower the entry barrier for customers making substantial purchases, thereby widening the potential customer base.
We know we are all good at spending our money, and a buy now, pay later plan is sometimes exactly what we need. But it’s important not to go overboard.
If you’re also interested in managing your money more wisely, check out our Blinkist article Simplify Finance, to understand the psychology of spending and how to manage your finances more effectively.
What is Klarna?
Klarna is an innovative payment service that has changed how we shop online. It allows you to purchase items from your favorite stores without paying the total amount immediately.
Instead, you can pay the total cost 30 days later or split it into smaller, more manageable payments over a few weeks or months.
|Note: When you split your purchase into 4 interest-free payments, they might need a soft credit check.
This flexibility makes Klarna a popular choice for shoppers who want the convenience of buying now but prefer to spread out their payments to better manage their budget.
As of 2023, Klarna boasts over 150 million active users and partnerships with over 200,000 merchants worldwide, a testament to its skyrocketing popularity.
And before we dive into the 8 best apps like Klarna, take a look at our article about Tony Robbins’ 7 strategies to make some money and not just spend it in “Money Master the Game”. Because, you know, it’s all about the balance.
7 Apps Like Klarna — the Competition
In the bustling marketplace of Buy Now, Pay Later apps, Klarna isn’t the only star. Let’s explore some top-notch alternatives, each offering unique twists to the BNPL concept.
You might find your next favorite shopping companion here!
A heavyweight in the BNPL arena, Affirm offers straightforward, transparent financing.
Key Features: No late fees, and offers interest-bearing loans for larger purchases.
Pros: Transparent pricing, no hidden fees.
Cons: Interest rates can be high for some purchases.
Sezzle emphasizes responsible spending with interest-free installment plans.
Key Features: Four interest-free payments over six weeks.
Pros: Interest-free, user-friendly.
Cons: Limited to participating merchants.
Hailing from New Zealand, Laybuy offers a straightforward approach to BNPL.
Key Features: Six weekly payments, splitting the cost evenly.
Pros: Spreads payment over six weeks, interest-free.
Cons: Late fees apply, and availability is more limited.
A part of the Zip Co family, Quadpay allows customers to split their purchases into four payments.
Key Features: Four equal installments, paid over six weeks.
Pros: No interest charges, user-friendly app.
Cons: Late fees and limited to participating merchants.
Splitit stands out by allowing customers to use their existing credit card for installment payments.
Key Features: Uses available credit on a customer’s card, dividing purchases into monthly payments.
Pros: No need for a new credit check, utilizes existing credit lines.
Cons: Depends on your credit card’s terms.
ViaBill offers a simple BNPL solution, primarily focusing on online shopping.
Key Features: Monthly installments with transparent terms.
Pros: Easy integration for merchants, straightforward for users.
Cons: Limited to online purchases, smaller merchant network.
As a well-established player in the digital payment space, PayPal Credit extends its reach into the BNPL market. It’s built on the reliability and extensive network of PayPal.
Key Features: Flexible financing options, often with promotional offers like no interest if paid in full within a certain period.
Pros: Trusted brand, extensive merchant network.
Cons: Interest rates can be high outside promotional offers.
As we look at all these different apps like Klarna, it’s clear that each one has its special way of doing things with Buy Now, Pay Later (BNPL). They have different styles to match what different people want, like more flexible payment options, low fees, or working with certain stores.
So, there’s probably an app on this list that fits just right with how you like to shop. Here’s a simple summary of how these apps stack up against Klarna:
|Interest-bearing loans; No late fees
|Transparent pricing; No hidden fees
|Can have high interest rates
|Primarily in the U.S.
|Four interest-free payments over six weeks
|Limited to participating merchants
|U.S., Canada, India
|Six weekly payments
|Interest-free; Easy to use
|Late fees; Limited availability
|New Zealand, UK, Australia
|Four equal installments over six weeks
|No interest; User-friendly app
|Late fees; Limited to participating merchants
|Uses existing credit card
|No new credit check; Utilizes credit lines
|Depends on credit card terms
|Monthly installments; Transparent terms
|Easy for users and merchants
|Limited to online purchases; Smaller network
|U.S. and Denmark
|Flexible financing options; Promotional offers
|Trusted brand; Wide network
|High rates outside promotions
|Global, wherever PayPal is accepted
Each of these BNPL apps provides unique benefits and challenges, making it essential to choose one that best fits your specific needs and shopping habits.
Choose the Right BNPL App for Your Needs
Alright, we’ve looked at 7 apps like Klarna, each with their own great features for buying now and paying later. Some apps, like Affirm, are all about clear costs with no sneaky fees. Others, like PayPal Credit, are great because lots of stores use PayPal.
The key thing to remember? Pick the app that fits how you spend and save. And speaking of being smart with money, don’t miss out on learning how to really handle your cash.
Check out Blinkist’s Guide, Improve Your Financial Health. It’s packed with tips on saving up, not just spending, and getting your money to work hard for you. You can learn about saving for emergencies, planning for the future, and more. It’s a game-changer!
So, dive into these apps like Klarna, choose wisely, and maybe swing by Blinkist to get with over 6,500 book summaries even smarter about your money. Start learning with Blinkist’s guide on financial health and get on top of your game!