Afterpay is an easy-to-use buy now, pay later service. Several retailers have a built-in Afterpay payment option in their checkout – both online and in stores – where you can simply select the Pay in 4 repayment.
Alternatively, you can add the Afterpay Plus Card to your digital wallet from the lender’s app. Then, when you check out at your favorite retailer that accepts Google Pay or Apple Pay, you’ll simply tap it like a normal credit card and your installment plan will be set up automatically.
When you set up your Afterpay account on the app, you’ll be prompted to link the credit or debit card of your choice. After you make a purchase, installment payments can be automatically charged to the card on file.
Afterpay also offers a monthly payment loan that comes with six- or 12-month repayment plans and charges up to 35.99% APR. It is not available in all states, and only offered on purchases over $400 with select merchants.
You’ll be charged a late fee only if your selected payment method is declined and you have no other available payment methods on file.
Afterpay users are allowed to have multiple installment payments at once, at the discretion of the platform. Shoppers who try to take out too many loans might be denied, but the more you use the platform, the more flexibility you are allowed.
Afterpay is accepted in-store, online or both at major retailers including Gap, Wayfair, Ulta Beauty, Shein and Ray-Ban. Plus, the Afterpay Card allows you to use Afterpay in-store at any retailer that accepts Google Pay or Apple Pay.
The terms of Afterpay’s Pay in 4 are simple: You’ll pay four equal installments over six weeks. The first payment is due when you make your purchase and the rest are due in two-week increments.
As long as you make your payments on time, you will not be charged any interest or fees. If you fail to make a payment, you could be subject to a late fee of no more than 25% of the original order value.
When you sign up with Afterpay via the app, you’ll be given an estimated maximum amount you can take out in installment loans. The longer you use the app and make on-time payments, the more you’ll be able to borrow.
If you choose to pay over a six- or 12-month period, a down payment may be required and your interest will accrue daily based on the outstanding principal balance. You’ll pay anywhere from 0% to 35.99% APR.
Additionally, if you are enrolled in the Afterpay Pulse Rewards program, you can unlock other benefits by making payments on time – such as no upfront payments and flexible payment dates.
Afterpay offers a Pay in 4 solution, so it’s easy to know how your payments will look. Your installments are automatically charged to your linked payment method at two-week intervals, starting the date you make the purchase.
If you miss a payment, Afterpay will notify you and offer a grace period, typically 10 days. If you still fail to make your installment payment, you could be subject to a late fee no greater than 25% of the order value.
Additionally, customers who are not on time with any installments may be barred from making future purchases with Afterpay.
Afterpay’s monthly payment product is only available with certain merchants and for purchases over $400. These payments can be spread out over six or 12 months, and will accrue daily interest based on the outstanding principal balance. This payment option is not available in Nevada, New Mexico, West Virginia or Hawaii.
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Afterpay is far from the only buy now, pay later service on the market, and it won’t be the best choice for everyone. While its straightforward Pay in 4 structure and lack of interest or fees is appealing to many, other shoppers might prefer more repayment options.
Accepted: Afterpay is accepted at Shein, Pandora, MAC Cosmetics, Dyson and more. Affirm is available at checkout with Amazon and Target, VRBO, along with many others.
APR: For its Pay in 4 loan, Afterpay doesn’t charge interest or service fees as long as you make your payments on time. For its monthly plan, you’ll pay anywhere from 0% to 35.99% APR. Affirm offers no interest for Pay in 4 installments, or you’ll pay between 0% and 36% APR for monthly installment plans.
Terms: Afterpay offers a Pay in 4 plan that charges your first 25% of the purchase price immediately, then splits the remaining three payments over two-week intervals. Its monthly installment plans offer six- or 12-month repayment periods. Affirm’s repayment options vary from four payments over six weeks to monthly payments up to 48 months.
Fees: If you fail to make your installment payment, you could be subject to a late fee no greater than 25% of the value of your Afterpay purchase. Affirm does not charge any additional fees.
Accepted: Afterpay is accepted at Shein, Pandora, MAC Cosmetics, Dyson and more. Klarna is accepted at Etsy, Sephora, lululemon and Instacart, among others.
APR: For its Pay in 4 loan, Afterpay doesn’t charge interest or service fees as long as you make your payments on time. For its monthly plan, you’ll pay anywhere from 0% to 35.99% APR. Klarna only charges interest on select financing plans, and it ranges between 0% and 29.99% APR.
Terms: Afterpay offers a Pay in 4 plan that charges your first 25% of the purchase price immediately, then splits the remaining three payments over two-week intervals. Its monthly installment plans offer six- or 12-month repayment periods. Klarna offers three different payment plans with varying terms – Pay in 4, Pay in 30 days, and financing plans which range from six to 24 months.
Fees: If you fail to make your installment payment, you can be subject to a late fee no greater than 25% of the value of your Afterpay purchase. Klarna fees vary by payment plan. Pay in 4 and Pay in 30 days plans come with no service fee, but late payments are subject to a fee of up to $7 – as long as it doesn’t exceed 25% of purchase price. Pay over time plans are subject to interest charges.
Afterpay has no effect on your credit score. The company might perform a soft credit check on approval, but it will never perform a hard credit check. Additionally, your payments are not reported to the major credit bureaus, even late payments.
Afterpay does not publicly share if there is a minimum credit score to qualify, but it does reserve the right to deny customers based on their credit history.
Afterpay rates 4.8 out of 5 stars on TrustPilot with more than 128,000 reviews. It has an A+ rating with the Better Business Bureau but is not accredited.
Complaints about Afterpay tend to focus on issues with refunds and returns, as well as problems with unauthorized transactions on linked payment methods. The company received 16 complaints with the Consumer Financial Protection Bureau in 2022 and all were given a timely response. Eight complaints were closed with monetary relief, one with non-monetary relief and the additional seven were closed with explanation.
Afterpay has an extensive FAQ database online, but if you still need to get in touch about a question or concern, you can contact customer service via an online form. Representatives are online seven days a week to respond to queries.
- Looking for a buy now, pay later option that will not affect their credit.
- Who don’t want to pay interest on their installment plan.
- Who shop in stores using Google Pay or Apple Pay.