Shopping binges aren't just for special occasions anymore. These days, customers worldwide make purchases quickly and painlessly with the help of "buy now, pay later" (BNPL) options.

These programs allow customers to purchase and spread the payment cost across several months. BNPL has revolutionized shopping, allowing you to pay for items in installments rather than all at once.

But Klarna isn't the only player in the game. In this blog, we'll look at the top six Klarna alternatives you can use for your buy now, pay later needs, and how you can save up for big purchases (such as flights and more!) with Accrue Savings without any late payment fees or debt accumulation.

Klarna is a Swedish financial services company that offers buy now, pay later (BNPL) options for online shoppers. It has 150 million consumers worldwide and over 500,000 merchant partners in 45 countries. Klarna has several payment options:

• Pay in four equal installments over six weeks: Pay 25% when you purchase the item and the remaining 75% in three equal installments every two weeks. This is interest-free, but if you’re late, there’s a $7 late fee.
• Pay in 30 days without interest: This option allows you to try out items before buying them. If it isn’t a good fit, you can return it as long as it isn’t damaged or worn.
• Pay over time: Spread the cost of your purchase over six, 12, or 24 months. This payment option has an interest rate of 17.9%, and if you’re late on your payments, there’s a $7 late fee.

While Klarna is an excellent option for BNPL, several other apps offer similar services with unique features. Here are the top six apps like Klarna:

1. Affirm

Affirm is one of the most popular buy now, pay later apps. It offers an easy way to purchase items and split payments without hidden fees.

Repayments can be broken down into three-, six-, or 12-month plans without interest and APR rates ranging from 0%-30% depending on the loan amount. 

Affirm also offers round-up payments, allowing customers to make extra payments in small amounts on top of their installment plan. This feature helps customers pay off their purchases faster.

Additionally, they offer a "Shop With Points" feature for customers who have accrued enough points to redeem for items in their Affirm account. Unlike Klarna, Affirm has no late payment fees.

2. Laybuy

Laybuy lets you receive your purchase immediately and pay it back in six installments. One sixth of the total amount is paid during checkout, and the rest is paid in five weeks. 

The best part about Laybuy is that there is no interest for using this service, nor are there any hidden fees or installment charges. You can shop in-store or online retailers accepting this payment method and easily link your credit card or debit card to the app.

However, Laybuy only accepts cards issued by New Zealand banks, so this BNPL may not be available for people outside New Zealand, unlike Klarna, which is available worldwide.

3. Sezzle

Sezzle is a mobile app-based BNPL payment option that allows shoppers to purchase and pay for items in four equal interest-free installments within six weeks. 

You have to pay a 25% upfront fee for each purchase, but the rest can be paid every two weeks in equal installments. Sezzle has around 7.8 million users, and it’s available in more than 30,000 online and in-store ecommerce stores. They will run a soft credit check to make sure you qualify and beware that you can hurt your credit score if you don’t make your payments on time.

Sezzle also has an online marketplace where you can shop from selected merchants. Some of them will earn you reward cashback, which can be used for future purchases. Sezzle gives customers a one-time free chance to reschedule a payment if they cannot make one, something Klarna doesn’t allow. If you miss one, there is a late payment fee of $10. 

4. Afterpay

Afterpay is one of the leading BNPL apps with over 16 million users worldwide, offering interest-free payments. It allows shoppers to purchase and pay for items in four equal payments over six weeks with no additional fees. The first payment is due at checkout, and the remaining three will be charged every two weeks. 

With Afterpay, there is no credit check, so it is available to anyone with a debit or credit card. They charge late fees of at least $10 and up to 25% of the order value if payments aren't made on time. However, they offer a range of reminders to ensure this doesn't happen. 

Afterpay also provides long-term loans that accumulate interest. They have no minimum purchase amount and are accepted by over 63,000 merchants. Afterpay is a great alternative to Klarna for those who prefer short payment loans.

5. Splitit

Splitit allows you to purchase items and then pay for them in multiple installments without any fees or interest. It works with any credit or debit card, and you don't need to apply for a loan, so there is no need to worry about your credit score. 

The payment plans are flexible, allowing for installments of up to 12 months. You also have the choice to make extra payments whenever you want so that you can pay off your purchase faster. The best part about Splitit is that it can be used in 200 countries via Mastercard or Visa. 

Also, Splitit does not have late payment fees, but there may be charges from your credit card provider.

6. PayPal

PayPal is a well-known and popular payment processor that allows customers to purchase items with their PayPal account. There are two flexible payment options for Paypal in the US:

• Four installments: With the four installment payment plan, customers pay 25% of their purchase at checkout, and the remaining three installments will be charged every two weeks. This is applicable for purchases ranging from $30-$1500.
• Monthly payments: Customers can pay in monthly installments for six, 12, or 24 months. This plan can be used for large purchases from $199-$10,000.

In both cases, payments are automatically deducted from the customer's PayPal account or linked bank account. Customers who use the buy now, pay later feature are protected by PayPal's Buyer Protection policy which covers up to $20,000 of their order value. It is available in seven countries. 

Everything has its drawbacks and advantages, and BNPL services are no different. Before selecting any BNPL application, let's look at some of their pros and cons to help you make an informed decision.

Pros

• Convenience: BNPL apps enable you to make purchases without immediate full payment. You can buy items in installments, allowing you to spread the cost of your purchase over time without worrying about credit card debt.
• Flexibility: Most BNPL platforms offer a variety of payment plans, so you can choose the one that best suits your budget. Some services allow you to reschedule payments if your financial situation changes.
• Loyalty: Some BNPL apps offer loyalty programs or exclusive offers, such as discounts or cashback rewards. This makes them an excellent option for frequent shoppers who want to get the most out of their purchases.

Cons

• Overspending: BNPL apps can be a great tool for budgeting but also make overspending easier. You may be more tempted to buy items beyond your actual means. This makes it easy for purchases to pile up — leading to a lot of stress when the bills come.
• Interest and fees: Depending on the BNPL service, you may be charged interest or late payment fees. This can add up quickly and make purchases much more expensive than initially anticipated.
• Late payments: Most BNPL services charge late payment fees. They also may report late payments to credit bureaus, which could negatively affect your credit score.

Accrue Savings is the perfect choice if you want a better way to buy the things you want without going into debt. 

With Accrue, users can set aside a set amount each month to be used for future purchases. You can contribute as much or as little as you want, pause contributions at any time, or even invite friends and family to help crowdfund your savings goals. It’s a great way to save for purchases versus buying them outright with credit, because you don't have to worry about overspending or accruing interest and fees — like you do with BNPL apps.

Accrue Savings offers a secure, easy-to-use platform that helps users save money over time. With Accrue Savings, you can:

• Set up regular contributions from your bank account so you’ll never forget to save money.
• Purchase from some of your favorite brands and retailers at discounted rates.
• Automatically track your progress, allowing you to stay on-budget and reach your financial goals easier.
• Earn up to 20% toward your purchase when you shop with Accrue Savings’ partners.
• Save money at your pace: no need to rush or worry about late payments.

Use Accrue Savings to save more than ever on big expenses

Buy now, pay later (BNPL) apps are a great way to buy the items you need without worrying about paying the full cost upfront. However, these apps have drawbacks, such as overspending and hidden fees. 

That's why Accrue Savings is the perfect alternative. We offer a secure, easy-to-use platform that helps users save money over time without relying on BNPL apps. We have partnered with some of your favorite brands and retailers so that you can purchase at discounted rates. 

Sign up now to start saving today!