With about half of Generation Z (ages 18-27) and Millennials (ages 28-43) Americans – 51 percent and 55 percent respectively – using at least one buy now, pay later (BNPL) app, according to Bankrate’s Buy Now, Pay Later Survey, Apple Pay Later was an expected addition to the market earlier this year.
Like other BNPL apps, consumers could divide their purchases from partnering retailers into four equal installments. It also reported loan data – including repayment history – to the credit bureaus.
However, Apple discontinued this feature in June. Now that it’s no longer available, consider some trusted alternatives instead.
Alternatives to pay later
If you were a fan of the Apple Pay Later feature, you may be disappointed by its demise. The upside is that there are viable BNPL alternatives worth considering. You can use Sezzle, PayPal or Affirm to make your purchases more organized.
| Sezzle | PayPal | To confirm | |
|---|---|---|---|
| Bank rate score | 5.0 | 4.7 | 4.6 |
| Amount of the loan | $10-$15,000 | $30-$10,000 | Starts at $50 |
| April | 0%-34.99% | 0%-35.99% | 0%-36% |
| Term lengths | 2 weeks to 48 months | 6 weeks to 24 months | 6 weeks to 48 months |
| Costs |
|
Not applicable | Not applicable |
Sezzle
Sezzle is a BNPL app that lets you split purchases in-store or online from participating retailers into installments. If you choose the Pay in 2 option, you will pay half upon purchase and the remaining half within two weeks. The Pay in 4 option splits your purchase into four equal payments over six weeks. Either way, you don’t pay any interest.
You can also choose the monthly repayment plan, which allows you to repay Sezzle with terms of up to 48 months. This requires interest to be paid, with rates ranging from 5.99 percent to 34.99 percent, although some borrowers may qualify for a 0 percent APR.
Sezzle is a viable alternative to Apply Pay Later due to its similar repayment options. If you can pay in two or four installments, you avoid interest and receive a high financing limit of $2,500. If you choose to pay in monthly installments, the maximum amount you can finance is a generous $15,000.
PayPal
PayPal also offers the option to buy now and pay later with the Pay in 4 and Pay Monthly plans. Pay in 4 is available for purchases between $30 and $1,500. Like other BNPL apps, it requires a deposit at the point of sale, followed by three interest-free payments.
If you need more purchasing power, the Pay Monthly plan supports purchases between $199 and $10,000. Your repayment period is up to 24 months and the loan amount has an APR of 9.95 percent to 35.99 percent.
Unfortunately, PayPal doesn’t offer as much leeway as Sezzle when it comes to maximum loan amounts and terms. Still, you can avoid interest by paying off your balance within the six-week period – and you’ll gain access to PayPal’s Purchase Protection.
To confirm
Affirm is another BNPL option with two payment plans. You can choose from four equal payments or opt for monthly installments. Like other alternatives to Apply Pay Later, you can split purchases into biweekly payments without accruing interest. Some borrowers may be required to make a down payment, but it is possible to make a $0 down payment if you qualify.
The monthly payment option is for purchases up to $5,000 over three to 60 months. To access this plan, a soft credit check is required and the maximum APR is 36 percent. This is similar to personal loan rates, although personal loans require a hard credit check.
Depending on your credit profile, you can get a lot more borrowing power with Sezzle or PayPal. Still, Affirm is worth mentioning, especially because it skips the annoying late payment and refund penalties found with many other BNPL apps.
Why did Apple Pay stop offering its BNPL service?
Apple stopped offering its BNPL service around June of this year, but did not provide specific reasons for discontinuing the program. If you have an existing BNPL loan with Apple, you can access and manage the details through your Apple Wallet.
But according to 9to5MacApple plans to offer installment loans in the near future. While there are no details on what these will look like, Apple’s installment loans will likely be accessible via debit or credit cards and lenders.
