8 Best BNPL Companies for Your Business (2026)

Buy now, pay later (BNPL) lets customers split payments into fixed installments instead of paying the full amount at checkout.

For merchants, choosing a BNPL provider involves more than offering another payment method. Providers differ in pricing, ecommerce integrations, geographic availability, approval requirements, and the customer checkout experience.

Review the benefits popular BNPL companies offer so you can decide on the best one for the needs of your customers and your business.

What are buy now, pay later (BNPL) companies?

BNPL companies offer installment loans at checkout. The provider pays the merchant for the purchase, then collects scheduled payments from the customer.

BNPL companies collect merchant fees on each purchase. The merchant receives the purchase price minus that fee. The Federal Reserve notes that BNPL merchant fees generally range from 5% to 8% of the purchase price. Credit card providers typically charge 2% to 3%.

Leading BNPL companies and services include:

• Shop Pay Installments, offered by Shopify in partnership with Affirm
• Afterpay
• PayPal Pay Later
• Klarna
• Zip
• Sezzle

The Federal Reserve’s 2026 market review identifies Affirm, Afterpay, Klarna, PayPal, Sezzle, and Zip as six major US BNPL providers. It estimated that these companies issued $156.7 billion in US BNPL credit during 2025.

The standard pay-in-four plan collects the first payment at checkout and three more every two weeks. Other plans use monthly payments and longer repayment periods. 

Most plans include a credit assessment, a soft inquiry that does not affect the applicant’s credit score. The Consumer Financial Protection Bureau (CFPB) found that all six major BNPL providers in its 2025 study used soft credit inquiries as part of the underwriting process for pay-in-four loans. Most BNPL credit issued in 2025 was interest-free. According to the Federal Reserve, about 63% carried a 0% APR, while the remaining 37% charged interest, 

Longer-term financing plans can also generate interest revenue. Some BNPL companies collect late fees on missed payments, although practices vary by company. A 2025 Consumer Financial Protection Bureau report found that four of six large providers charged late fees. The inflation-adjusted average fee assessed in 2023 was $9.99, and collected late fees equaled 0.18% of origination volume.

Shop Pay Installments does not charge late fees. Its payment plans can carry APRs from 0% to 36%, depending on the option.

The buy now, pay later fine print

BNPL costs and credit checks vary by loan type. Pay-in-four plans generally charge no interest and use soft credit inquiries. Longer installment loans can charge interest and use hard inquiries. Providers also set their own late-fee and missed-payment policies.

Credit reporting varies by provider. For example, Affirm reports all loans issued from April 1, 2025, including Pay in 4 loans, to Experian. Even if a provider doesn’t routinely report to credit bureaus, an unpaid balance sent to collections can still appear on a customer’s credit report.

From 2019 through 2022, BNPL borrowers defaulted on 2.1% of their BNPL loans, compared with 10.1% of their credit cards. 

The comparison covers the same borrowers, not all credit card users. The CFPB said automatic BNPL payments likely explain part of the difference.

The BNPL provider takes on the customer’s default risk after approving the purchase. That protection doesn’t automatically cover fraud or customer disputes. 

Under Shop Pay Installments, for example, Affirm collects the customer’s payments. Merchants still respond to disputes and can lose the disputed amount when Affirm decides in the customer’s favor.

8 popular buy now, pay later companies

These eight BNPL providers cover the main financing models, including ecommerce checkout financing, app-based payment plans, and card-linked installments. The list starts with Shop Pay Installments followed by other providers available to merchants and shoppers. 

The table shows current US consumer terms unless noted. Terms were checked in July 2026.

1. Shop Pay Installments

The facts

• Provider: Affirm
• Online order range: $35 to $30,000 USD in the US, $35 to $30,000 CAD in Canada, and £50 to £30,000 in the UK
• US payment terms: Two interest-free biweekly payments for orders from $35 to $50; four interest-free biweekly payments for orders from $50 to $999.99; or monthly plans from three to 24 months for eligible orders from $150 to $30,000
• US monthly interest: 0% to 36% APR
• Merchant requirements: Shopify Payments and Shop Pay must be active, and the store must pass Shopify’s eligibility checks
• Shopify POS: Available to eligible US merchants using Shopify POS 8.4 or later for in-store purchases from $50 to $20,000

Pros

• Built into Shopify checkout
• Merchants receive full payment upfront, minus the Shop Pay Installments transaction fee
• One in four participating merchants sees a 50% increase in average order value
• 28% fewer abandoned carts among merchants that switched from a third-party installment provider
• Access to more than 200 million shoppers already using Shop Pay Installments
• No customer late fees
• Eligible US merchants can offer the same payment method online and through Shopify POS

Cons

• Online availability is limited to eligible stores in the US, Canada, and the UK
• Shopify POS availability is limited to eligible US stores
• Monthly plans can charge interest and require a down payment
• Shopify does not return the merchant’s Shop Pay Installments transaction fee when an order is refunded

Who it’s for

Shopify merchants in the US, Canada, and the UK that want a native Shopify integration instead of separately integrating a third-party BNPL provider directly

2. Affirm

Affirm offers Pay in 4 and longer installment loans online and in stores. 

As of March 31, 2026, Affirm reported 26.8 million active consumers and $11.6 billion in quarterly gross merchandise volume, according to its fiscal third-quarter filing.

Affirm reports all loans issued from April 1, 2025, including Pay in 4, to Experian. Experian says this information doesn’t currently affect traditional credit scores, but it appears on the consumer’s credit file and could affect future lending decisions. Experian explains the reporting policy here.

The facts

• Interest: 0% to 36% APR, based on eligibility, purchase amount, merchant, and plan
• Loan term: Pay in 4 every two weeks or monthly installments from three to 60 months
• Fees: No late fees
• Purchase amount: Affirm’s merchant installment product supports orders up to $25,000; a down payment may be required
• Availability: Affirm maintains consumer sites for the US, Canada, the UK, and Australia

Pros

• Available online and in stores
• Offers some of the longest repayment terms in this comparison
• Supports both interest-free promotions and interest-bearing financing
• Does not charge late fees

Cons

• Every purchase is subject to eligibility and approval
• Many monthly plans charge interest
• Affirm reports all loans issued to Experian

Who it’s for:

Businesses selling higher-ticket products that want longer financing terms than Afterpay or many Klarna plans provide

3. Afterpay

Afterpay offers Pay in 4 in Australia, Canada, New Zealand, the US, and the UK, where it operates as Clearpay. 

It also offers Pay Monthly through participating US merchants. This makes it an app-led alternative to Affirm and Klarna for brands that sell lower- and mid-priced products.

The facts

• Interest: Pay in 4 is interest-free at Afterpay partner merchants; certain nonpartner purchases made through the Afterpay app can carry a finance fee
• Loan term: Four payments over about six weeks, or monthly payments over three, six, 12, or 24 months
• Pay Monthly interest: 0% to 35.99% APR
• Fees: US Pay in 4 late fees can reach $8 per missed installment, with total late fees capped at 25% of the order value
• Approval: Afterpay assesses every purchase separately

Pros

• Available online and in stores
• Does not use hard credit inquiries for Pay in 4
• Does not currently report Pay in 4 activity to traditional credit bureaus
• Sends payment reminders and lets eligible users reschedule payments
• Offers monthly financing for larger US purchases

Cons

• Every purchase must be approved
• Missed Pay in 4 payments can result in late fees
• Finance fees can apply to some nonpartner purchases made through the app
• Pay Monthly requires a credit check and can charge up to 35.99% APR

Who it’s for

Brands that want a six-week, app-based alternative to Affirm or Klarna, with monthly financing available for some larger US purchases

4. Sezzle

Sezzle operates in the US and Canada as a Delaware public benefit corporation. It reported 3.05 million active consumers and $3.94 billion in gross merchandise volume for 2025 in its latest annual filing.

The facts

• Payment plans: Pay in 2, Pay in 4, Sezzle Monthly, and longer-term partner financing
• Loan term: Two payments over two weeks, four payments over six weeks, Sezzle Monthly plans from three to 36 months, and some partner plans up to 48 months
• Interest and service fees: Pay in 2 and Pay in 4 are marketed as interest-free, but a service fee can apply; Sezzle’s published financing example adds a $7.49 finance charge to a $300 Pay in 4 loan, producing a 45% APR
• Monthly interest: 0% to 35.99% APR
• Monthly fees: Late fees can reach $16.95, and failed-payment fees can reach $6.95, depending on state
• Availability: US and Canada. Sezzle Monthly is limited to eligible US residents.

Pros

• Offers Pay in 2, Pay in 4, and monthly financing
• Eligible payments can be moved by up to two weeks, sometimes as many as three times
• Sezzle Up lets users opt in to credit-bureau reporting, which can help establish a payment history
• A virtual card supports purchases at participating physical stores

Cons

• Service, late, failed-payment, rescheduling, and other fees can apply
• Payment rescheduling is limited to qualifying orders and may carry a fee
• Available terms depend on the merchant, product, and customer

Sezzle details its current rescheduling limits here.

Who it’s for

Businesses that want Pay in 2 or optional credit reporting can explain Sezzle’s more complex fee structure

5. PayPal Pay Later

PayPal Pay Later adds installment options to the existing PayPal checkout. It’s an alternative to Affirm, Klarna, and Afterpay for merchants whose customers already use PayPal as a payment solution.

The facts

• Pay in 4: Four interest-free payments over a little more than six weeks for eligible purchases from $10 to $2,000
• Pay in 4 fees: No PayPal application, late, or NSF fees
• Pay Monthly: Eligible purchases from $49 to $10,000, repaid over 3 to 24 months
• Pay Monthly interest: 9.99% to 35.99% fixed APR
• Approval: Each purchase is assessed separately; a soft credit check may be required
• Merchant fee: PayPal lists a standard US Pay Later rate of 4.99% plus 49¢ per transaction, with no monthly or setup fee

Pros

• Uses a familiar payment account and checkout
• Included with PayPal online checkout for eligible merchants
• PayPal pays the merchant upfront and manages repayment
• Eligible purchases can qualify for PayPal Purchase Protection
• Approved Pay Monthly customers can use a single-use virtual card in stores through Apple Wallet or Google Wallet

Cons

• Each Pay Later purchase requires approval
• Pay Monthly can charge up to 35.99% APR
• Product names, limits, and terms vary by country
• The in-store virtual card is tied to an approved Pay Monthly application, not every Pay Later plan

Who it’s for

Stores with frequent PayPal users that want a familiar checkout alternative to Affirm, Klarna, or Afterpay

6. Klarna

Klarna reported 118 million active consumers and 966,000 merchants for 2025. Its payment platform supports 26 countries, giving it broader international coverage than most providers.

In March 2025, Klarna partnered with OnePay to offer installment loans for Walmart customers in the US, both online and in stores. Approved Walmart customers can select terms from 3 to 36 months through OnePay. Klarna announced the partnership here.

The facts

• Interest: Pay in 4 is interest-free; Pay in 30 gives customers 30 days to pay; monthly financing ranges from 0% to 35.99% APR
• Loan term: Four payments over about six weeks, payment in full after 30 days, or monthly financing
• Fees: Late fees may apply to Pay in 4
• Approval: Klarna makes a separate approval decision for each purchase
• Availability: Klarna Payments supports 26 countries across North America, Europe, Australia, and New Zealand

Pros

• Available online and in stores
• Supports short-term and monthly payment options
• Offers the broadest international merchant coverage in this comparison
• Gives participating brands visibility through Klarna’s shopping and payments network
• Supports payments through Apple Pay and Google Pay in eligible markets

Cons

• Every purchase requires approval
• Late fees can apply to Pay in 4
• Monthly financing can charge up to 35.99% APR
• Available products differ by country and merchant

Who it’s for

International brands that want broader country coverage and app-based customer discovery as an alternative to Affirm or Afterpay

7. Zip

Zip is a BNPL service that lets eligible customers split purchases into two, four, or eight payments. Its virtual card model can work at many card-accepting merchants.

The facts

• Payment plans: Pay in 2, Pay in 4, or Pay in 8
• Interest and fees: Zip charges an origination fee that is treated as a finance charge, so the plan can carry a disclosed APR
• Origination fee: $0 to $124, based on the purchase amount and plan
• Late fee: Up to $7, depending on state
• Payment date change fee: $2 after one free payment-date change per customer each month
• Approval: Every transaction is reviewed separately; estimated spending power is not an open credit line
• Availability: US purchases

Pros

• Available online and in stores
• Supports two-, four-, and eight-payment plans
• The Zip app can create a virtual card for use through a digital wallet or physical Zip card
• Users can review their payment plan before completing the purchase

Cons

• Origination fees can make short repayment plans expensive
• Late and payment-date change fees can apply
• Every purchase requires separate approval
• Zip does not offer a traditional monthly financing product in the US

Who it’s for

US businesses and shoppers that want an app-based alternative to Affirm, Klarna, or Afterpay and are comfortable with disclosed origination fees

8. Splitit

Splitit divides a purchase into installments charged to the customer’s existing credit card. It doesn’t open a new loan or credit account. The customer’s card issuer provides the underlying credit.

In July 2025, Splitit also launched Samsung Wallet installments in 21 states and Washington, DC, for eligible Visa and Mastercard holders.

The facts

• Payment model: Monthly or biweekly installments charged to an existing eligible credit card
• Interest: Splitit does not add interest to its core card-linked plan, but the customer’s normal card APR applies if they carry a balance
• Fees: Splitit does not add hidden fees to its core card-linked plan; card fees and terms still apply
• Credit requirement: The customer must have enough available credit to support an authorization for the full purchase amount
• Credit check: Splitit does not run a new credit check or open a separate credit account
• Availability: Online and in stores where participating merchants offer it

Pros

• No new loan application or account
• No separate credit check
• Customers can continue earning eligible credit card rewards
• Available online and in stores at participating merchants
• Typically supports Visa and Mastercard; American Express, Discover, and UnionPay support depends on the merchant

Cons

• Customers need an eligible credit card with enough available credit to cover the full authorization
• The authorization hold temporarily reduces available credit
• Card interest can apply if the customer carries a balance
• Supported cards and installment terms vary by merchant

Who it’s for

Businesses that want a card-linked alternative to Affirm, Klarna, and Afterpay for customers who prefer to use their existing credit and card rewards