Updated August 31, 2022
Buy now pay later apps are an essential part of any e-commerce business, as they can help to extend a product’s lifetime. They also provide a new revenue stream that many brands couldn’t previously access.
Buy now pay later apps are ideal for e-commerce businesses that sell high-value products, such as electronics and appliances. Instead of forcing customers to pay in full upfront, you can offer different financing options.
This can encourage more transactions and make your business more appealing to customers who the high costs of your goods might otherwise put off.
There are many different buy now pay later apps out there, and it can be tough to decide which one is right for your e-commerce brand.
Luckily, we’re here to help! We’ve compiled a list of the best buy now pay later apps based on features, ease of use, and customer satisfaction.
What Is A Buy Now Pay Later App?
A buy now pay later app offers financing to customers who are buying your products. It’s a type of credit, usually with an interest rate, that allows people to delay their payments until later.
The specific details of each app vary, but the general concept remains the same. There are several different types of buy now pay later apps.
They can be broken down as follows: Buy now pay later apps are easy to use and can make your business more accessible to customers who wouldn’t otherwise be able to make a purchase. It’s also an excellent option for customers who want to pay in full but don’t have the cash upfront.
How Does A Buy Now Pay Later App Work?
When you sell your products through a buy now pay later app, you’ll be able to choose from different financing options. Customers will usually select their preferred choice when they place their order.
They’ll then get a notification when their transaction has been approved. When customers make a purchase through a BNP app, they’ll be asked to input their payment details. This allows the app to pull funds from the customer’s account later when the item is ready to be paid off.
Before a customer’s payment is due, they’ll be sent a reminder that they need to repay the funds. If they can’t pay off the balance, the app will take the money from the customer’s account.
If the customer doesn’t have enough money in their account, the app will send a collections agency after them.
Options For Buy Now Pay Later Apps
There are many different buy now pay later apps out there, and many of them are tailored for specific industries. Although there are several, you want to make sure that the app you choose is most suited for your e-commerce brand.
For example, if you sell electronics, you might want to use a BNP app like Whistle. This app is designed for businesses that sell electronics. If you sell appliances, however, you’ll want to use a BNP app designed for that industry.
Every BNP app will have different financing options, so it’s essential to choose one that meets your needs as a business. You’ll want to consider things like the minimum and maximum amount of financing, the interest rate, and the length of the term.
Pros Of Using A BNP App For Your E-Commerce Brand
There are several benefits associated with using a buy now pay later app for your e-commerce business. They will help increase your sales and keep customers returning to your site.
When customers can easily purchase, they’ll likely be more likely to complete the transaction. You’ll also be able to draw in new customers who might not have bought otherwise
If a customer can’t afford the total price of your item upfront, it can be a major barrier to purchase. Using BNP apps can help remove this barrier and encourage more purchases, leading to increased sales.
Longer Lifetime Of The Item
A buy now pay later app allows customers to purchase an item without paying the total amount upfront. This can help to extend a product’s lifetime, as customers can make smaller payments over a time that doesn’tput too much of a strain on their budget.
Cons Of Using A BNP App For Your E-Commerce Brand
BNP apps are not without their drawbacks, however. You’ll want to make sure that using this financing is the right decision for your e-commerce business.
There are risks associated with using buy now pay later apps, such as a higher default rate. Borrowers might not repay their debts, leading to a higher default rate. This can cause problems for your business, especially if you’re the one loaning the money.
Which Buy Now Pay Later App Is Right For You?
Having read through the pros and cons of using a BNP app, you should know which one is right for your e-commerce brand. However, it’s important to note that although these apps can be helpful, you shouldn’t rely on them too heavily.
You don’t want to make financing a crucial part of your e-commerce business model. If you’re looking for a buy now pay later app, you can use this list of the top BNP apps to begin your search.
You’ll want to consider the amount of financing available, the interest rate, and the length of the term. Once you’ve selected the best BNP app for your e-commerce business, you can quickly start accepting payments.
Afterpay is one of the most popular buy now pay later apps out there, and for a good reason. It’s easy to use, has a wide range of payment options, and has excellent customer support.
QuadPay is another great option for buy now pay later apps. It offers flexible payment plans, doesn’t require a credit check, and has a low minimum purchase amount.
Klarna is a popular Swedish buy now pay later app that offers interest-free financing for up to 24 months. It’s easy to use and has a wide range of retailers that accept it.
Sezzle is an excellent option for customers who want to build their credit score. It reports your payments to the credit bureaus, which can help you improve your credit score over time.
Bread is another good option for customers who want to build their credit score. It offers monthly reporting to the credit bureaus and has a low minimum purchase amount.
Affirm is a popular buy now pay later option for larger purchases. It offers financing for up to $17,500, and a wide range of retailers accept it.
Afterpay Touch is an Australian buy now pay later app similar to Afterpay. It’s easy to use, offers a wide range of payment options, and has great customer support.
Zip Pay is an Australian buy now pay later option that offers interest-free financing for up to 60 days. It’s easy to use and has a wide range of retailers that accept it.
Oxipay is a New Zealand buy now pay later option that offers interest-free financing for up to 8 weeks. It’s easy to use and has a wide range of retailers that accept it.
BNPL is the UK buy now pay later option that offers interest-free financing for up to 12 months. It’s easy to use, provides a wide range of payment options, and has great customer support.
Things To Consider Before Choosing A BNP App
One thing to consider when choosing a buy now pay later app is whether or not it offers interest-free payments. Some apps, like Afterpay and QuadPay, offer interest-free installments and payments for a certain period of time. This can be helpful if you’re on a tight budget and need some breathing room. Other apps make you pay interest on the entire purchase price from the get-go. Be sure to read the fine print and understand how each app works before making a decision.
Minimum Purchase Amount
Another thing to consider is the minimum purchase amount. Some apps, like Sezzle and Bread, have a low minimum purchase amount which can be helpful if you’re looking to make small purchases.
Some may ask you to make a down payment, while others require the entire purchase price upfront. It’s essential to understand how each app works before making a decision.
The Average Order Value Of Your Store
You’ll also want to consider the average order value (AOV) of your online stores before choosing a buy now pay later app. Some apps, like Affirm, have a high minimum purchase amount which is ideal for stores with a higher AOV. Others, like Klarna, have a lower minimum purchase which can be helpful for stores with a lower AOV.
You’ll also want to consider whether or not the app offers equal payments. As an online store owner, the payment method is also something to keep in mind – some apps allow you to pay with your debit or credit card, while others require you to set up a direct debit from your bank account.
For example, four equal payments of $25 would be $100. If you’re using a debit card, you’d need to have $100 in your account when the first payment is due.
You may be charged overdraft fees if you don't have enough money on your credit or debit card. You may also use PayPal credit, an interest-free payment method, if you have the funds in your PayPal account when the first payment is due.
Credit Check Requirements
Credit history is one of the main factors that lenders look at when considering a loan. If you have bad credit, you may not be approved for a loan, or you may be approved for a loan with a higher interest rate.
Some apps, like Klarna and Affirm, require a credit check to use their services. This can be helpful if you’re looking to build your credit score.
However, it’s important to note that a credit check can also ding your score, so make sure you understand the requirements before you apply.
There are many different buy now pay later apps out there, and choosing the right one for your e-commerce business can be challenging. It’s important to consider the interest rate, the term length, and the minimum purchase amount.
No matter which buy now pay later app you choose, read the terms and conditions carefully before you agree to anything. And always remember to make your payments on time to avoid late fees and interest charges.