With cashless payments becoming popular alternatives to paper money, new online banking features have emerged to make such transactions even more convenient. The “buy now, pay later” option is one such feature, wherein one can buy a product at present and choose to pay for it flexibly. Also, the payment option is interest-free, and the loan is usually approved quickly. Here are some good buy now, pay later apps for phones one can consider.

Klarna
Klarna Bank AB, or simply Klarna, is headquartered in Sweden and has many different payment plans for users, including monthly financing options and a pay-in-four plan. Their goal is to make online payments safe and easy for all. The loan approval process is quite simple – the company undertakes a soft credit check, investigating the borrower’s repayment history. Depending on whether the customer chooses the “pay-in-four” or a monthly financing option, the amount is either split into four parts or monthly installments. There is also a “pay-in-30” option, wherein one has to repay the full amount within 30 days. The pay-in-four and pay-in-30 plans do not charge any interest, but if a customer is more than ten days late in paying the installment, the late fee is $7.

Zip
This app has a “pay-in-four” payment strategy, wherein the total amount is split into four equal installments. The customer pays the first installment while checking out, and the rest of them are paid every two weeks. The company performs a soft credit check on customers; it also uses machine learning to pass loans, though it doesn’t divulge the exact process. There is an installment fee of $1 for those enrolling in the pay-in-four plan, so the total installment fee comes to around $4 per order. But this may even go up to over $7 sometimes.

PayPal
One of the most common online payment gateways, PayPal has pay-in-four and monthly payment options. Leading retailers like Apple, Calvin Klein, Etsy, Adidas, and Forever 21 support the use of PayPal on their online ecommerce sites. The pay-in-four option splits the amount into four equal parts, while the monthly plan has many different payment durations, including six-, 12, and 24-month plans depending on the purchase amount. PayPal’s pay-in-four plan is interest-free, but the monthly plan may charge anywhere from 9.99% to 29.99% APR.

Afterpay
Afterpay, an Australian fintech company, has also revolutionized the digital payment scene for individuals across the world. It offers flexible pay-in-four and monthly payment plans and does not charge any interest for the former. It may charge an APR of up to 35.99% for its monthly payment plans. Afterpay conducts a soft credit check on borrowers and may also evaluate the funds on one’s debit or credit card to understand whether one person is capable of repaying the loan. There’s no fee charged for those who pay on time, but there is a late fee of up to $8 for payments that are delayed by over ten days.

Affirm
Affirm offers several buy now, pay later plans under its hood, including pay-in-four and monthly repayment plans. It undertakes a soft credit check and considers different factors, such as how long one has been maintaining an account with Affirm and the borrower’s credit history with them, while approving loans. With the pay-in-four option, borrowers need to repay the amount in four equal installments once every two weeks. The first installment needs to be paid while checking out. One can also opt for its three-month, six-month, and 12-month repayment plans based on the purchase amount and one’s repayment capacity. There is no interest charged in the pay-in-four plan; the monthly plans may charge up to 36% APR. One of the advantages of Affirm is that there are no fees involved – not even for late payments.

Apple Pay Later
Apple Pay Later allows one to opt for a pay-in-four plan if one buys a product of up to $1,000 at any retail store that accepts Apple Pay online or in-app. All one needs to do is apply for Apple Pay Later in the Apple Wallet mobile app. The brand conducts a soft credit check on customers, and while there’s no apparent credit score prerequisite, the company claims that those with a 619 or lower FICO score may find it more difficult to get their loans approved. The company has not revealed any other factors it considers for loan approval. There is no interest charged on its pay-in-four option, and there are no fees, including late payment fees.

Splitit
Splitit offers flexible buy now, pay later options, wherein customers can split their payments into various installments, i.e., from 2 to 24 parts, through their credit cards. This is a good alternative to creating a new loan for every purchase. The platform relies solely on the borrower’s existing credit accounts, so there is no credit inquiry process. So, even if a borrower has a low or average credit score, it is easier for them to get their loans approved through Splitit than on other fintech platforms.

Buy now, pay later is a useful option if one wants to repay a certain amount flexibly. But one should remember to make payments on time because most of these apps charge a late fee. Also, they should compare the APR and interest rates across different platforms before opting for one of them.