Best Buy Now Pay Later Apps for E-commerce in 2025

Buy Now Pay Later (BNPL) apps are revolutionizing e-commerce, providing flexible payment solutions that boost sales and enhance customer satisfaction.

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With BNPL services becoming increasingly popular, businesses are looking for the best options to increase conversions and average order values. From zero-interest installment plans to easy approval processes, the right BNPL solution can significantly impact your bottom line.

In this guide, we’ll explore the best buy now pay later apps for e-commerce in 2025. Discover the top BNPL providers, compare their features, and learn how to get approved to offer more payment flexibility to your customers.

Top Buy Now Pay Later Apps for E-commerce in 2025

To help you choose the best BNPL solution for your business, we’ve compared the top providers, highlighting their key features, interest rates, fees, and best use cases.

Key Features:

• Klarna: Multiple payment plans, large merchant network, and rewards programs.
• Affirm: Transparent pricing, credit-building options, and long-term financing.
• Afterpay: Focus on interest-free payments and younger shoppers.
• PayPal Pay in 4: Easy integration with PayPal’s ecosystem.
• Shop Pay Installments: Seamless Shopify integration for Shopify merchants.

Quick Comparison of Top Bnpl Apps

BNPL is growing fast, projected to reach $115 billion by 2032. Choose the right provider based on your business needs, customer base, and platform compatibility. Dive into the article for detailed comparisons and insights.

Best Buy Now Pay Later (BNPL) Solutions for your Business

1. Klarna

Klarna is one of the most popular BNPL apps for fashion and luxury brands. It offers multiple payment options, including interest-free installments and long-term financing. With over 150 million users worldwide, Klarna helps businesses increase conversion rates and average order values.

Affirm stands out for high-ticket purchases, offering both short-term interest-free installments and longer-term financing. It also reports payments to credit bureaus, helping customers build credit.

Payment Options and Features

Klarna gives shoppers three ways to pay:

For merchants, Klarna ensures upfront payments and takes on fraud and chargeback risks. It also integrates with popular e-commerce platforms like Shopify, WooCommerce, and Magento.

Merchant Benefits and Costs

Klarna charges transaction fees between 3.29% and 5.99%, plus $0.30 per transaction. There are no monthly service or onboarding fees. High-volume businesses processing over $3 million annually unlock additional perks:

• Lower processing fees
• A dedicated customer success team
• Marketing opportunities through Klarna’s Creator Platform
• Access to Klarna’s marketplace, which connects with 147 million active shoppers

Merchants often see a boost in performance, with reports of up to 30% higher average order values and better conversion rates [1].

Market Position and Support

Klarna holds a dominant 70% market share in Europe and serves around 150 million customers globally. Its wide range of payment options and strong merchant support make it a great choice for established e-commerce businesses looking to offer more payment flexibility and improve customer experience.

Though Klarna leads the BNPL market, competitors like Affirm cater to specific audiences with their own unique offerings.

2. Affirm

Affirm has become a prominent player in the Buy Now, Pay Later (BNPL) market, with over 16.9 million users and partnerships with more than 266,000 businesses across North America. It stands out by offering flexible payment plans and conducting detailed credit evaluations.

Payment Options and Features

Affirm provides several payment plans, including Pay in 4 and Pay in 2 for purchases ranging from $50 to $1,000, both with 0% interest. For larger purchases – up to $20,000 – monthly payment plans are available, with APRs between 0% and 36%. The platform uses soft credit checks that don’t impact credit scores, analyzing over 80 factors such as payment history, income, education, and employment. Additionally, Affirm reports loan activity to credit bureaus, giving users a chance to build their credit profiles.

Benefits for Merchants

Merchants using Affirm have reported an 85% increase in Average Order Value (AOV) and a 20% boost in repeat purchases. They also gain access to Affirm’s network of 12.7 million active shoppers. Affirm charges merchants roughly 6% plus a $0.30 fee per transaction and offers protection against chargebacks and fraud.

Integration Made Easy

Affirm integrates smoothly with major e-commerce platforms and provides customized solutions for businesses. Gregg Dean highlights this advantage:

“The prequalification modal puts customers’ minds at ease, allowing them to enjoy the shopping experience.”

Standing in the Market

Research by Bank of America shows that Affirm was the most widely used BNPL app in the US during Q3 2022. Its focus on transparency and flexible financing options makes it a great choice for businesses selling high-ticket items or offering long-term payment plans. These qualities help Affirm build trust and encourage customer loyalty.

While Affirm’s flexibility and credit-building features are appealing, other BNPL services like Afterpay may be better suited for different business models or customer preferences.

3. Afterpay

Afterpay offers simple, interest-free payments divided into four equal parts. It’s popular with younger shoppers and brands targeting fashion and beauty markets.

Afterpay connects with 16 million active customers and collaborates with 140,000 merchants worldwide. In 2022, it reported a 72% boost in sales, reaching $46.3 billion in underlying sales [3].

Payment Structure and Merchant Costs

Afterpay lets shoppers divide their purchases into four interest-free payments spread over six weeks. Merchants are charged a 4.99% transaction fee plus $0.30 per transaction [6]. Unlike Klarna, Afterpay exclusively focuses on interest-free payments, making it a solid choice for businesses aiming to attract budget-conscious buyers.

Integration and Platform Support

Afterpay works seamlessly with platforms like Shopify, WooCommerce, and Magento, making it adaptable for a variety of retail sectors. Its integration strength has secured partnerships with major retailers such as Apple, Amazon, and Walmart [5].

Business Impact and Performance

Merchants using Afterpay often experience up to a 50% increase in average order value, one of the best results among BNPL providers. They also benefit from up to 30% higher conversion rates and access to a large customer base of over 16 million active shoppers.

Market Position and Future Growth

Afterpay’s focus on flexible payment options has resulted in strong customer satisfaction, reflected in its 4.5-star Trustpilot rating from more than 12,000 reviews. With the BNPL market projected to grow at a 25.3% CAGR through 2032 [3], Afterpay is expanding into in-store payments through collaborations with Sephora and Macy’s. This positions the company for further growth as the retail industry evolves.

While Afterpay is known for boosting customer loyalty and sales, other BNPL options like PayPal provide features tailored to different business models.

4. PayPal Pay in 4

PayPal leverages its trusted platform to offer a seamless BNPL experience. Ideal for small to medium-sized businesses looking for broad customer adoption. PayPal Pay in 4 offers an easy-to-implement solution for businesses already using PayPal, helping to boost customer confidence and drive more sales.

Payment Setup and Costs for Merchants

PayPal Pay in 4 splits purchases into four interest-free payments. The first installment is due at checkout, with the remaining payments spread out every two weeks. For merchants, the costs are simple – standard PayPal transaction fees apply, with no extra charges specific to the BNPL service. It’s an affordable choice for businesses already integrated with PayPal.

Why It’s Easy to Use

This service blends directly into PayPal’s existing tools, so businesses don’t need to add new systems or work with additional payment processors. It’s especially appealing for companies targeting younger shoppers who like flexible payment options. Plus, merchants gain exposure to PayPal’s massive user base of over 400 million, giving them access to more potential buyers while benefiting from higher order values and better conversion rates.

Impact on Sales and Customer Spending

Shoppers using PayPal Pay in 4 tend to spend significantly more – up to 87% more per transaction. The service works particularly well for industries like fashion, electronics, and home goods, where larger purchases are common and flexible payments make a big difference [7].

Built-In Security and Risk Handling

PayPal takes on all payment risks and uses advanced fraud prevention tools to keep transactions secure. Merchants receive payments immediately, adding an extra layer of convenience and security. These features make PayPal Pay in 4 a reassuring option for e-commerce businesses.

Its compatibility with multiple currencies and e-commerce platforms makes it suitable for businesses operating in different markets. While PayPal Pay in 4 leverages its existing ecosystem effectively, competitors like Shop Pay Installments offer distinct features tailored to specific platforms, giving businesses more options to consider.

5. Shop Pay Installments

Shop Pay Installments is Shopify’s solution for the “Buy Now, Pay Later” (BNPL) trend, tailored specifically for Shopify store owners. It allows customers to split their purchases into four interest-free payments, making it easier to afford higher-priced items.

Integration and Setup Process

Since Shop Pay Installments is built directly into Shopify, merchants can activate it right from their dashboard. The setup is straightforward, and merchants can adjust payment options to fit their store’s needs.

Merchant Costs and Benefits

This feature works with Shopify’s standard transaction fees and ensures merchants receive full payment upfront while the platform handles the installment collections.

Recent data shows that stores using Shop Pay Installments have seen:

• Up to a 50% boost in average order value
• Fewer abandoned carts
• Increased conversions, especially for higher-priced products

Best Fit for Certain Businesses

Shop Pay Installments works particularly well for businesses in sectors like fashion, home goods, electronics, and luxury beauty.

Simplified Risk Management

The platform takes care of all payment processing, late payments, and potential defaults, reducing the workload for merchants. With advanced fraud prevention tools and automated reminders, it ensures smooth payment compliance.

Potential Drawbacks

This service is available only for Shopify merchants, unlike competitors like PayPal Pay in 4, which can be used across various e-commerce platforms. While this exclusivity makes it an excellent fit for Shopify users, it might not suit businesses operating on other platforms. Currently, Shop Pay Installments is also limited to select markets, though expansion plans are in progress.

To make the most of this feature, merchants should highlight its availability on product pages and during checkout to encourage customers to use it.

While Shop Pay Installments is a great choice for Shopify merchants, its limited availability outside the Shopify ecosystem can be a drawback compared to more flexible BNPL options.

Integration Considerations

When deciding on a BNPL provider, businesses should focus on three key areas:

• Platform Compatibility: Check if the service integrates smoothly with your e-commerce platform and supports your target markets.
• Fee Structure: Compare transaction costs and repayment terms to ensure profitability.
• Support Services: Evaluate the quality of merchant and customer support offered.

The pandemic accelerated the shift to digital payments, pushing BNPL adoption to new heights [3]. By carefully analyzing these factors, businesses can choose a provider that fits their strategy – details covered further in the next section.

Key Takeaways

The BNPL (Buy Now, Pay Later) market is on an upward trajectory, offering e-commerce businesses a promising avenue for growth. This year, the market is expected to hit $97.25 billion. BNPL has secured its place as the fifth most-used payment method in e-commerce, currently holding a 5% market share, which is projected to grow to 6% by 2026. With over 360 million users globally and forecasts suggesting this could climb to 900 million by 2027, BNPL is becoming an essential part of e-commerce strategies.

Platform Selection Guide

Choosing the right BNPL provider depends on your business type and customer base. Here’s a quick breakdown:

• Klarna: A great fit for fashion and luxury retailers with higher average order values (AOVs). Features like price alerts, rewards, and strong conversion rates make it appealing. Fees: 3.29%-5.99% + $0.30 per transaction.
• Affirm: Ideal for high-ticket items such as electronics. Known for transparent pricing that builds trust, and merchants report an 85% increase in AOV. Fees: 6% + $0.30 per transaction.
• Afterpay: Works well for mid-range fashion and beauty brands targeting younger shoppers. Its simple “Pay in 4” model and marketplace exposure add value. Fees: 4.99% + $0.30 per transaction.

Beyond picking the right provider, success with BNPL depends on how well it’s integrated into your store and your understanding of customer preferences.

Optimizing Your BNPL Strategy

To make the most of BNPL, focus on these three key areas:

• Mobile Integration: With digital wallets accounting for 54% of e-commerce transactions, ensuring a smooth mobile experience is critical.
• Customer Insights: Nearly half of BNPL users buy fashion-related items, so aligning your product offerings with their preferences can drive sales.
• Risk Monitoring: While providers manage credit risk, merchants should keep an eye on transaction patterns to improve approval rates.

AI is playing a growing role in refining credit decisions and enhancing user experiences. Since online sales account for 64% of global BNPL revenue, having a strong digital presence is non-negotiable.

For better results, align your BNPL options with your customers’ spending habits:

• Under $100: Consider PayPal Pay in 4 or Shop Pay Installments.
• $100-$500: Afterpay or Klarna are solid choices.
• Over $500: Affirm or Klarna’s financing options work best.

FAQs

What is the difference between Klarna, Affirm, and Afterpay?

The main difference lies in how they structure payment plans and assess credit. Klarna and Afterpay rely on soft credit checks, while Affirm uses hard credit checks to determine interest rates and loan terms.

Here’s a quick comparison of their features:

Knowing these differences can help businesses choose the option that fits their customers’ preferences and their operational needs.

What is the best buy now pay later app for 2025?

The best BNPL app depends on your business needs. Klarna is great for fashion brands, while Affirm works well for high-ticket items. PayPal is ideal for broad adoption, and Afterpay suits younger consumers.

Are there BNPL apps with no interest or fees?

Yes, Afterpay and PayPal Pay in 4 offer interest-free plans with no additional fees as long as payments are made on time. Klarna also offers interest-free options with its Pay in 4 and Pay in 30 plans.

How do I get approved for BNPL apps?

Most BNPL apps perform soft credit checks, meaning they won’t affect your credit score. Factors like your payment history and outstanding debts are often considered.

By choosing the right BNPL provider, you can enhance your customers’ shopping experience while boosting your conversion rates. Make sure to consider platform compatibility, interest rates, and fee structures when making your decision.