With eCommerce and online shopping becoming widely popular and easily accessible, Affirm has become very useful. With a buy now, pay later scheme. Affirm does not charge any late fees and does not subject shoppers to compound interest. There are numerous competitors for Affirm and after researching all of them, it is safe to say that Sezzle is the most suitable alternative.

Top 10 Affirm alternatives and competitors

  1. Sezzle – Most suitable alternative to Affirm
  2. PayPal Credit – Offered on websites of well-known merchants
  3. Klarna – Post-purchase payments
  4. Afterpay – Buy now, pay later scheme
  5. Zip – No fraud risk for retailers
  6. GoCardless – Recurring payment collection
  7. Splitit – No credit checks
  8. PayPal – Popular and well-trusted; Only one account needed
  9. ViaBill – Buy now, pay later
  10. FuturePay – Friction-free checkout

1. Sezzle – Most suitable alternative to Affirm

Pricing: The payment processing fee is 6% plus 30 cents per transaction

Providing an alternative payment platform, Sezzle offers interest-free installment plans at selected stores online. Sezzle promises to help customers attain financial freedom and empowers them to take control of their finances.

Key features:

  • Email notifications
  • Customer portal
  • Invoicing
  • Loyalty management
  • Payment gateway
  • Payment tracking
  • Payment scheduling
  • E-commerce integration

Reasons to buy:

  • No interest on purchases
  • No hard credit checks
  • Transparent payment plan

Reasons to avoid:

  • Fees for failed or rescheduled payments
  • Lower limits for first-time shoppers
  • Must contact merchant for refunds

2. PayPal Credit – Offered on the website of well-known merchants

Pricing:

  • Free to use
  • Late payment charge: 12 euros
  • Returned payments: 12 euros
  • Request for a hardcopy of the previous statement: 5 euros

PayPal Credit is an online ‘credit card’ that gives customers a credit limit that is attached to their PayPal account. This can then be used for online purchases.

Key features:

  • 0% interest offer when spending over 99 euros
  • Instant access
  • Pay in installments
  • Easy management

Reasons to buy:

  • Quick and easy to apply for PayPal credit
  • 0% interest offer never expires
  • A convenient way to shop
  • No annual fee

Reasons to avoid:

  • You may not qualify if you have a bad credit score
  • Interest rates are high
  • Charged $5 or 3% for each balance transfer and cash advance

3. Klarna – Post-purchase payments

Pricing:

  • APR: 0.00% to 19.99%
  • Returned payment: up to $25
  • Late payments: up to $7 per missed installment

Klarna is a fintech company that supports customers in being able to buy now, and pay later. Klarna provides online financial services, including direct payments and post-purchase payments. Klarna partners with retailers around the world so that customers can utilize their services.

Key features:

  • Mobile app
  • Interest-free installment plan
  • Pay in 30 days
  • Financing of 1 to 18 months
  • The minimum spending limit is $10

Reasons to buy:

  • No prepayment, annual or membership fee
  • Multiple finance avenues
  • Customers don’t have to pay interest on the four-payment plan
  • No over-the-limit charge

Reasons to avoid:

  • Low borrowing amounts
  • Charges returned payment and late fees
  • You may have to go through a hard credit check for longer financing terms

4. Afterpay – Buy now, pay later scheme

Pricing: Late payment fee: $10 first, and then a $7 fee if no payment has been made

Afterpay is an Australian financial technology company that also operates in the United Kingdom, Canada, the United States, and New Zealand. Afterpay is fully integrated with the stores they have chosen. Customers can pay their money back in four interest-free installments.

Key features:

  • Consumers receive products immediately
  • Payments made after purchase
  • Mobile app

Reasons to buy:

  • Immediate use
  • Seamless integration within stores
  • Fee and interest-free terms
  • Provides an automatic framework for payment
  • Management with smart limits

Reasons to avoid:

  • Encourages impulse spending
  • The spending limit for some shoppers
  • Late payment fees
  • Eligibility requirements

5. Zip – No fraud risk for retailers

Pricing:

  • Late fee: £4 first, and then a further £4 each week until payment is made
  • Late fee: cap of £20

Zip is another organization that allows consumers to pay back their money in installments that are interest-free. There is no fraud risk for retailers and integration is fast and free.

Key features:

  • Zero-interest
  • Pay in four installments
  • Can be used in-store and online
  • Upcoming payment reminders
  • No early repayment charges

Reasons to buy:

  • Buy now, pay later
  • Interest free
  • No early repayment charges
  • Use in-store and online
  • No hidden fees

Reasons to avoid:

  • Can affect credit score
  • Limited payment plans
  • Partnered with fewer retailers

6. GoCardless – Recurring payment collection

Pricing:

  • No hidden fees
  • No set-up cost
  • 1% + 0.20 euros per domestic transaction
  • 2% + 0.20 euros per international transaction
  • Standard membership: no fee
  • Plus membership: 50 euros per month
  • Pro membership: 250 euros per month

With GoCardless, businesses can collect payments from customers from around the world. This service is a good choice for subscriptions, invoicing, and installments. Business owners can do all of this off of one dashboard that is very user-friendly.

Key features:

  • Pay per transaction
  • Access to international payments
  • Automatically collect one-off and recurring payments
  • Collect fixed and variable payment amounts
  • Set date and frequency of payment collection

Reasons to buy:

  • Excellent in big business management
  • Customer service is good
  • Onboarding and implementation process
  • Website is multilingual

Reasons to avoid:

  • The pricing structure varies and is specific to each user
  • No data is available for customers who cancel their payments

7. Splitit – No credit checks

Pricing: Equal payments span from three to twenty-four months

Splitit allows consumers to pay the money back without having to pay interest. It can be linked to an existing credit card, making it easier to use and there is no need to create an additional account. The only requirement is that consumers already have existing balance amounts on their credit cards.

Key features:

  • No registration involved
  • Use original credit or debit card
  • The feature is built directly into partner retailers’ online check-out

Reasons to buy:

  • Interest-free
  • No credit checks
  • No application
  • No waiting period for service
  • You can make early payments

Reasons to avoid:

  • Limited payment options
  • Partners with limited retailers
  • Places a hold for the full balance
  • Only accepts VISA and Mastercards
  • Cannot use Splitit as a tool to improve credit score

8. PayPal – Popular and well-trusted; Only one account needed

Pricing: No sign-up fee

With PayPal, consumers and business owners can securely pay, receive and manage money with only one account.

Key features:

  • Buy now pay later
  • Pay with rewards and QR codes
  • Check-out with crypto
  • Send and request money
  • Donate and raise funds
  • Savings and goals
  • Add cash
  • Set up direct deposit
  • Receive money from customers

Reasons to buy:

  • Secure means of sending payment
  • Diverse financing options
  • Extensive online and in-person payment solutions
  • Additional merchant support features

Reasons to avoid:

  • A popular target for phishing and scams
  • Poor customer service
  • Digital purchases aren’t protected
  • Disputes can delay refunds

9. ViaBill – Buy now, pay later

Pricing: Starting at 2.9% + 30 cents

Consumers pay 0% on interest with this platform and can pay their debt off in just four installments. Business owners, on the other hand, receive the full amount.

Key features:

  • 0% interest
  • Buy now pay later
  • Integration with the website’s checkout flow
  • Enables higher conversion, larger AOV and revenue
  • MyViaBill dashboard used to manage purchases

Reasons to buy:

  • Cheap fees and easy to implement with business
  • No prepayment fees when making purchases
  • Settlements are easy to manage

Reasons to avoid:

· Limited communication and merchant support

· Possible issues with support for international customers

· Complicated refund policy and process

10. FuturePay – Friction-free checkout

Pricing: Starting price: $5 on every $500 balance

FuturePay offers shoppers financial freedom to pay their debt off later by using revolving credit. Shoppers do not need to use credit cards or make single-purchase instalment loans. FuturePay offers friction-free checkouts, making repeat purchases easy.

Key features:

  • Payment transparency
  • Mobile device compatibility
  • Instant payment to your account
  • Payment security
  • Monthly payment options
  • Buy now pay later features

Reasons to buy:

  • Multiple payment methods
  • Compatibility with mobile devices
  • No credit card details required
  • Easy onboarding process

Reasons to avoid:

  • Only supports the English language

References:

  • https://comparisons.financesonline.com
  • https://comparecamp.com
  • https://viabill.com
  • https://www.g2.com
  • https://www.paypal.com
  • https://www.trustradius.com
  • https://gocardless.com
  • https://www.creditcards.com
  • https://www.finder.com
  • https://www.afterpay.com
  • https://www.canstar.com
  • https://www.lendingtree
  • https://www.registerednursern.com