Consumers have been financing purchases since at least the Great Depression, when layaway plans first offered the option to hold an item until it was paid off. Then came credit cards, in-house installment plans, and personal loans — all methods that allowed shoppers to buy things even when they didn’t have all the money upfront.
All of these financing options still exist. But the best buy now, pay later apps, also known as BNPL apps, have changed the game, streamlining the process with quick online approvals and flexible payment terms.
Here’s a breakdown of the best BNPL apps and services, plus a look at how they work.
What’s buy now, pay later?
BNPL is a modern twist on the age-old concept of financing a purchase. BNPL services allow you to split the cost of an item into smaller, more manageable payments, often without incurring interest. It’s essentially a short-term loan.
You can use BNPL for a wide range of purchases — not just physical objects like clothing and furniture. Depending on the company or service, BNPL can apply to intangible purchases like concerts and air travel.
How does buy now, pay later work?
The way BNPL services work is surprisingly simple. Here are the typical steps:
- Shop. When you get to the checkout screen, choose BNPL as your payment method. You’ll probably see your total price broken down into weekly or monthly installments.
- Get approved. The BNPL provider quickly reviews your application, usually running only a soft credit check with no impact on your credit score.
- Pay a portion upfront. You typically make a small down payment, often around 25% of the total purchase price.
- Pay over time. The service divides the remaining balance into equal installments, which are typically debited from your checking account or charged to a credit card automatically.
- Enjoy your purchase. Unlike layaway, where you won’t get your purchase until you’ve made the last installment payment, BNPL gets you your items right away. If you’re making an online order, it should come through as usual.
When to use Buy Now, Pay Later
BNPL works best when used selectively, for planned, essential purchases that fit your budget. Below are a few everyday situations where buy now, pay later options make sense, and a few where they don’t.
Splitting a mid-size purchase over 4 payments
When you need to purchase new shoes, a small appliance, or a home item, using a "pay in 4" app can spread the cost over several weeks with no added interest. This approach helps balance short-term cash flow without having to take on credit card debt.
Buying a large appliance or electronic
If you’re purchasing a laptop, phone, or washing machine, buy now, pay later apps can make these bigger expenses more manageable. Just ensure the plan is interest-free and your budget allows for the scheduled installments.
Avoid BNPL for small daily expenses
BNPL works best as a budgeting tool, and not as a substitute for income or savings. It may be best to avoid using buy now, pay later apps for everyday spending or juggling several active plans. Having multiple small, repeated payments can add up quickly and strain your budget.
Tips for choosing a buy now, pay later company
Before comparing BNPL options, get familiar with the different factors that set one apart from the other. Here’s what to keep in mind.
Fees
While many BNPL services advertise 0% interest, they may charge fees for late payments or other services. Carefully review the fee structure to avoid unexpected costs. Some providers are more transparent than others, so look for those that clearly outline any potential fees.
Interest rates
Not all BNPL services are interest-free. Some may charge you depending on the purchase amount, your creditworthiness, or the repayment term. Always check the annual percentage rate (APR) before committing to a purchase.
Some BNPL providers offer different products with very different terms. PayPal, for example, has an interest-free option called Pay in 4. But if you apply for PayPal Pay Monthly or PayPal Credit instead, you could get stuck with an interest rate as high as 35.99%.
Credit checks
Most BNPL providers conduct a soft credit check during the application process, which won't impact your credit score. But if you do choose one that performs a hard credit check, your score may take a temporary hit. Be sure to understand the type of credit check involved before applying.
Repayment
When comparing BNPL apps, payment installments will be one of the most important factors. Look for plans that won’t last too long. While you’ll have much smaller payments for a purchase that’s stretched out over three years than with a four-payment plan, it may not be worth the commitment.
Spending limits
Each BNPL service has its own spending limits, which may vary based on your creditworthiness. Make sure the limit aligns with your anticipated purchase amount.
Merchant acceptance
Not all retailers accept every BNPL app, but it’s easy to check if your preferred service is available with the store you’re shopping at.
Popular buy now, pay later apps and services
Choosing the right BNPL app depends on your needs, spending habits, and the options the retailer has available. It’s also worth noting that most BNPL companies don’t require you to download their apps — many function as payment options integrated directly into an online checkout.
Here’s a comparison of some of the most popular options.
App | Interest rates | Terms | Fees | Approval process | Key features |
0–36% APR | 3, 6, or 12 months | No late fees | Soft credit check | Wide acceptance, transparent terms, good for large purchases | |
0–35.99% APR | 4 weeks - 24 months | Late fees up to $7 | Soft credit check | Flexible payment options, rewards program | |
0–35.99% APR | 3, 6, 12, or 24 months | Late fees up to 25% of the order value | Soft credit check | Widely accepted, easy to use | |
0% APR | 6 weeks (4 payments) | No late fees | Soft credit check | Integrated with PayPal, convenient for online purchases | |
0% APR | 6 weeks (4 payments) | Late fees up to $10 | Soft credit check | User-friendly interface, good for budgeting | |
0% APR | 6 weeks (4 payments) | Installment fees range from $8-$78, depending on purchase price | Soft credit check | Flexible payment dates, lower credit score requirements |
Accurate as of November 25, 2025.
The pros and cons of using buy now, pay later
BNPL services offer a convenient way to manage purchases, but it's important to weigh the benefits and drawbacks before taking the plunge.
Pros
- Flexible payments. BNPL breaks down large purchases into smaller, more manageable installments, making budgeting easier.
- Easy approval. The application process is typically quick and straightforward, with many providers only requiring a soft credit check.
- Interest-free financing options. Many BNPL services offer 0% interest, making them a potentially cost-effective way to finance purchases compared to traditional credit cards.
Cons
- Potential for overspending. For some, BNPL may feel too easy. It can lead to impulse purchases and overspending, potentially creating debt you can't afford.
- High fees for late payments. Missing installment payments can result in hefty late fees, negating the benefits of using the service in the first place.
- Impact on credit score. If your BNPL provider uses a hard credit check or reports late payments to credit bureaus, it could affect your credit score.
How to use buy now, pay later responsibly
Buy now, pay later options can help you manage short-term costs, but only when used mindfully. Some tips to do this are:
Consider setting a budget
Before choosing a buy now, pay later plan, review your monthly budget. Make sure future installments fit alongside essentials like rent, groceries, and bills. Determining a clear spending limit ensures BNPL remains a helpful tool rather than a source of debt.
Understand the terms
Every BNPL service has its own repayment rules. Review details such as installment dates, potential late fees, and any penalties for missed payments. Understanding these terms helps you use buy now, pay later plans without surprises.
Monitor payment schedules
Keep all your active BNPL plans visible in one place. Use budgeting apps or a simple spreadsheet to track due dates and amounts. Setting calendar reminders ensures you never miss an installment, which can protect your credit and help you avoid late fees.
Avoid impulse buying
BNPL makes shopping easy, but that convenience can encourage overspending. Before confirming a “pay in 4” purchase, pause and ask: "Would I still buy this if I had to pay in full today?" If the answer is no, it’s often best to wait.
Be selective
Limit buy now, pay later use to essential or planned purchases, such as work equipment, appliances, or needed home items. Avoid juggling multiple BNPL plans at once, as overlapping payments can add up quickly and strain your budget.
Alternatives to Buy Now, Pay Later for Smarter Spending
Need flexibility without more debt? Access your earned wages with EarnIn: no mandatory fees, no interest, no surprises. It’s a safer way to manage short-term cash flow, without juggling multiple BNPL apps or risking late fees.
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Please note, the material collected in this post is for informational purposes only and is not intended to be relied upon as or construed as advice regarding any specific circumstances. Nor is it an endorsement of any organization or services.
This Blog was sponsored by EarnIn. While the author received compensation, the information shared is grounded in independent research and intended to provide helpful and accurate guidance to readers.
EarnIn is a financial technology company, not a bank. Banking services are provided by our bank partners on certain products other than Cash Out.
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