Buy now, pay later (BNPL) platforms have become increasingly popular in recent years, offering consumers a convenient way to spread out the cost of purchases over a period of time. Two of the most best buy now, pay later platforms are Affirm and Afterpay. Both platforms offer interest-free financing on purchases, but there are some key differences between the two.
Eligibility
One of the biggest differences between Affirm and Afterpay is their eligibility requirements. Affirm requires customers to undergo a soft credit check, while Afterpay does not. This means that customers with limited or bad credit may be more likely to be approved for Afterpay.
Payment terms
Another key difference is the payment terms offered by each platform. Affirm offers a variety of payment terms, ranging from 3 to 48 months. Afterpay, on the other hand, only offers a single payment term: pay in four. This means that customers must make four equal payments every two weeks, starting at the time of purchase.
Fees
Both Affirm and Afterpay charge late fees if customers fail to make a payment on time. Affirm’s late fee is up to $10, while Afterpay’s late fee is up to $8. Affirm also charges a $10 late payment fee for every 10 days that a payment is overdue.
Merchant acceptance
Affirm and Afterpay are both widely accepted by merchants, but Afterpay has a slightly larger network of merchants. Affirm is accepted by over 200,000 merchants, while Afterpay is accepted by over 100,000 merchants.
Other features
One of the unique features of Affirm is that it offers a virtual debit card that can be used to make purchases anywhere, even at merchants that don’t accept Affirm directly. Afterpay does not offer a virtual debit card.
Another feature of Affirm is that it reports on-time payments to the major credit bureaus. This can help customers build their credit history. Afterpay does not report payments to the credit bureaus.
Which platform is right for you?
The best BNPL platform for you will depend on your individual needs and preferences. If you have limited or bad credit, Afterpay may be a good option for you, as it does not require a credit check. However, if you want more flexibility with your payment terms, Affirm is a better choice.
Here is a table that summarizes the key differences between Affirm and Afterpay:
Which platform is more popular?
According to a recent study by Juniper Research, Afterpay is the most popular BNPL platform in the world, with over 20 million active users. Affirm is the second most popular BNPL platform, with over 10 million active users.
Which platform is better for building credit?
If you are looking to build your credit history, Affirm is the better BNPL platform. Affirm reports on-time payments to the major credit bureaus, which can help you improve your credit score. Afterpay does not report payments to the credit bureaus.
Additional tips for using BNPL platforms
Here are some additional tips for using BNPL platforms:
Only use BNPL platforms for purchases that you can afford to pay off in full within the specified payment period.
Make sure to understand the fees associated with each platform before you use it.
Create a budget and track your spending carefully so that you don’t overspend.
If you are struggling to make a payment on time, contact the platform immediately to see if they can offer you any assistance.
BNPL platforms can be a useful tool for managing your finances, but it is important to use them responsibly. By following these tips, you can avoid getting into debt and take advantage of the
Which platform is right for you?
The best BNPL platform for you will depend on your individual needs and preferences. Here is a brief overview of the key differences between Affirm and Afterpay:
Affirm is a good choice for customers who want more flexibility with their payment terms or who want to build their credit history.
Afterpay is a good choice for customers with limited or bad credit or who want to make payments over a shorter period of time.
If you are still unsure which platform is right for you, here are some additional questions to consider:
- How much time do I need to pay off my purchase?
- Do I have good credit?
- Do I want to build my credit history?
- Where do I want to shop?
- Do I want to use a virtual debit card?
Conclusion
Both Affirm and Afterpay are good BNPL platforms, but they offer different features and benefits. Affirm is a better choice for customers who want more flexibility with their payment terms or who want to build their credit history. Afterpay is a better choice for customers with limited or bad credit or who want to make payments over a shorter period of time.