What if you could shop now and pay later?
That’s the promise of Perpay, a buy-now-pay-later shopping app that is quickly gaining popularity. Perpay lets you purchase items now and pay for them in 12 installments without having to worry about interest rates or late payment fees.
It’s a cost-effective way to spread out your payments and make buying things more affordable. Perpay doesn’t check your credit scores. However, it boosts your credit scores by reporting your direct deposit repayments to Experian and Equifax credit bureaus four months into successful use.
So, how does Perpay make money if it doesn’t charge late repayment fees or interest rates?
The Philadelphia-based company makes money by taking a small percentage of each sale from the retailer. Perpay also protects itself from defaults by stipulating some rules, including:
- Direct deposits only to prevent fund cancellation and reversals
- Buyers must be employed with annual salaries of $15,000 or more
- Users must not have active bankruptcies
- Users must have active mobile phone numbers
Perpay also demands private and financial payroll data from users and their employers. These conditions may make you ineligible to leverage the lending facilities on this buying app.
However, you can go for Perpay alternatives and competitors if you still wish to shop online and pay later in installments.
Here is the list of the 15 best sites like Perpay.
Afterpay is a fintech app that allows you to buy stuff online and pay over four installments in six weeks. This platform supports over 1.6 million users across Australia, the United Kingdom, the United States, Canada, and New Zealand.
You can shop at over 85,000 retailers with Afterpay and enjoy early access to sales.
With this app, you get email and SMS alerts for each upcoming payment. If a payment is due soon and you can’t afford it, you have the option to reschedule your installments without any penalties.
Afterpay makes its money by charging merchants a fee for using its services. There are no interest rates, but late fees apply. You’ll have to pay a $10 late fee and $7 extra for delaying more than seven days. The fees don’t accrue thereafter.
Like Perpay, Afterpay doesn’t check your credit scores, and it doesn’t report to credit bureaus? So, how does it boost your credit scores?
Afterpay gives you a better alternative for credit card shopping, a significant factor in credit scoring models. Shopping with credit cards can upset your credit scores by raising your debt factor and credit utilization levels.
But, if you shop with Afterpay and make your installment payments on time, you can avoid those negative impacts on your credit scores.
A key difference between the two apps is that Perpay requires direct deposit repayments while Afterpay doesn’t. Also, Perpay demands private and financial payroll data from users and their employers.
Check out more platforms like AfterPay.
Formerly Quadpay, Zip is a New York-based fintech company that allows you to shop now and pay later in four installments over six weeks. You can use Zip at over 200,000 online stores, including ASOS, Gymshark, Missguided, Nike, and PrettyLittleThing.
Zip does not check your credit scores to qualify you, and neither does it report to credit bureaus. You pay the first deposit upfront and the rest over six weeks.
Zippy obliges to Federal Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. The fintech company requires your name, date of birth, email address, mobile number, last four digits of your social security number, or other government ID to open an account.
It allows you to use US credit or debit cards to make a purchase, as long as you have a valid US mailing address. It also doesn’t accept these billing addresses:
- AE PO
- PO Box
Unlike Perpay, Zip levies a little late repayment fee of $7 for seven-day delayed payments. For long overdue delays, the most you can pay for a late fee is $14.
It’s easy to shop on Zip, and it allows you to buy items that were out of reach. It urges you into financial discipline, and it indirectly helps you build your credit scores. How?
It’s always best to have only one credit line open, though you can have multiple. The fewer, the better. It’s also advisable to use your credit card just once in the period your credit provider stipulates before your card becomes inactive.
Credit scores are most high when you borrow least often and pay. Zip provides an exceptional alternative to credit card shopping. It allows you to buy now and pay later, but it doesn’t report your frequent borrowing.
This Swedish Fintech company was founded in 2005. It’s headquartered in Stockholm, Sweden, and it has over 1.6 billion in revenue worldwide.
Klarna allows you to shop online and pay for your purchases in four installments. It partners with over 200,000 retailers, including Adidas, ASOS, IKEA, Nike, Samsung, and The Iconic. You can shop at these retailers and choose to pay with Klarna.
Klarna offers two services: Pay in  Days or Pay in Four which allows you to make four installments every two weeks. Klana doesn’t charge interest fees. However, it charges only $7 for late payments.
Klarna doesn’t run a credit check on you to qualify you for its services. It also doesn’t report your borrowing and repayment activities to credit bureaus.
You can use Klarna anywhere in the world as long as you have a US billing address, a US credit or debit card, and are 18 years old or older.
Klarna is a cost-effective alternative to credit card shopping. It’s easy to use, and it doesn’t report your frequent borrowing to credit bureaus. Thus, you can shop now and pay later without negatively impacting your credit scores.
Discover the top alternatives to Klarna.
Splitit is an app that allows you to shop online and split your payments into installments. It does not check your credit scores, nor does it require applications. You can choose to pay over time with no interest or late fees.
To use Splitit, you’ll need to create an account and link your credit or debit card. When you’re ready to checkout on a retailer’s site, select Splitit as your payment method.
You’ll then be prompted to enter how many installments you’d like to make, and Splitit will pay the retailer the full amount of your purchase upfront. You’ll be responsible for making monthly payments to Splitit until your balance is paid off.
Splitit uses bank-level security measures to keep your information safe. When you enter your credit or debit card information, it’s encrypted and sent directly to your bank.
Splitit never stores your full credit or debit card number on its servers.
Splitit is a similar service to Perpay but with a few differences. Mainly, Perpay requires your payroll information, while Splitit doesn’t.
Founded in 2012 and based in San Francisco, Affirm is a financial technology company offering installment loans to consumers at the point of sale. Its mission is to empower people to advance their lives with honest financial products.
Affirm is different from other buy-now-pay-later options because it offers shoppers true flexibility and control over their finances. With Affirm, you can pay at your pace with no hidden or late fees.
You can decide on any three ways to pay after shopping with Affirm. You can make monthly or fortnightly payments or pay in four installments. There’s also the option to choose your preferred payment date when setting up automatic repayments.
Monthly payment options charge a small interest rate.
Unlike Perpay and Afterpay, you can use your debit card with Affirm. It also accepts credit cards and checks for some purchases. Moreover, Affirm checks your credit scores to offer you the best possible terms.
Applying for a loan with Affirm is easy. You just need to provide your basic information and then get a real-time decision.
Check out this post that talks about the best alternatives to Affirm.
This shopping app allows you to buy items now and pay for them later in four interest-free payments. The app is linked to your debit or credit card, and each payment is automatically deducted from your account every two weeks. Sezzle also offers a rewards program, giving you cashback on every purchase you make through the app.
The payment methods can decline because it doesn’t support all banks and providers.
You can access over 47,000 stores through this checkout method.
You can use Sezzle at physical stores by either scanning the QR code at the register or providing your phone number.
Online shoppers simply select Sezzle as their payment method at checkout and then log in to the app to complete the purchase. Sezzle charges a $10 late fee for every defaulted transaction, with a two-day grace period.
This Fintech service is a suitable alternative to credit card shopping as it doesn’t affect your credit scores. It doesn’t even rely on your credit scores to determine your suitability.
You can activate the Sezzle Virtual Card to use your available credit limit to shop online anywhere that Mastercard is accepted.
The Sezzle Card is a physical Mastercard that can be used anywhere Mastercard is accepted. You can order one for free from the Sezzle app, and it will be delivered to your doorstep within days.
Both the Sezzle Virtual Card and the Sezzle Card have a credit limit that is based on your spending habits and payment history with Sezzle.
This marketplace and online shopping app are different from other buy-now-pay-later apps because it offers merchandise from various vendors in one location. Your shopping options are unlimited, from fashion, jewelry, and electronics.
You can access up to $4,000 of financing to shop for ideal products at once.
It makes life easier if you want to buy things now without having the money available upfront. You can shop from a wide range of merchants and pay for your purchases over 6-12 months.
There are no interest or fees associated with using Venue, so it’s a great way to manage your finances and stay within your budget.
Venue offers a much longer repayment period compared to Perpay or Afterpay. Plus, you won’t have to pay any interest as long as your repayments are timely.
To use Venue, simply download the app, and create an account. Once you’re approved, you can start shopping! You can shop for anything you want as long as it’s within your credit limit.
If you need help with anything, customer service is available 24/7 to assist you.
Have you ever heard of lease-to-own? It’s a type of financing allowing you to take home the items you need without having to pay the full price upfront. FlexShopper is a lease-to-own shopping app that makes life easier for those who need it most.
FlexShopper allows you to schedule weekly automatic payments that could run into a year after you get your product. You can also make large payments, even a one-off after a year.
For something worth $2,500, you could make weekly $4 payments until the debt is clear. Just don’t take more than a year to complete the entire repayment.
You get an instant $2,500 spending limit as soon as your application goes forward. The FlexShopper Wallet is FDIC insured, so you know your money is safe.
You must be 18 years or older and have a checking account with credible standing. You must be a US resident, save for folks from Minnesota, New Jersey, Wisconsin, or Wyoming.
FlexShopper also expects users to have valid SSN, as it doesn’t focus much on your bad credit scores.
Find out more apps like FlexShopper here.
This adventure-based fintech can allow you up to $5,000 in spending credit without affecting your credit scores. So whether you’re looking to finance a new kayak or just need help with unexpected repairs, Credova is here for you.
Credova is an app that allows customers to shop now and pay later at their favorite stores. The app makes shopping easy and convenient by allowing customers to spread their payments out into four interest-free payments.
This checkout option is great for customers who are short on cash or who want to avoid interest charges. It’s also a good way to budget for large purchases without using credit card purchases.
Credova is different from other buy-now, pay-later apps like Perpay because it offers financing for both in-store and online purchases. Perpay only offers financing for online purchases.
How much you can spend and how long you have to pay it back depends on various metrics.
10. PayPal Credit
Formerly Bill Me Later, PayPal Credit is a digital line of credit that you can use to shop online anywhere PayPal is accepted. PayPal Credit offers customers no payments and no interest for six months on purchases of $99 or more when they check out with PayPal and choose PayPal Credit.
How does it work?
You simply need to select PayPal Credit as your payment method at checkout, and you can either apply for a new line of credit or use your existing PayPal Credit account.
Once you’re approved, you’ll have the option to pay your purchase over time with monthly payments. If you decide to pay in full within six months, you won’t be charged any interest.
The interest rate for new accounts starts at 23.99%, and the minimum interest charge is $2.00. The minimum credit you qualify for is $250.
For PayPal Credit to approve you, it requires:
- Your date of birth to verify age
- Your income after taxes instead of hard credit checks
- The last four digits of your Social Security number
- You agree with the terms and conditions
Unlike Perpay, PayPal Credit makes money via interest rates. Thus, the longer you delay, the more you pay. You’re also only given a set credit limit, which you may max out quickly if you’re not careful.
Also Read: Best Apps Like Chime Bank
This new shopping app is also like Perpay as it allows you an alternative for credit card shopping. Four interest-free repayments apply if you pay on time, but late fees apply for delayed payments.
Users have to spread the four repayments across six weeks, giving them enough time to sort out their finances. You can make repayments via:
- Google Pay
Don’t brace for a negative credit check impact because Four doesn’t require a credit check to use the app.
Four is available on both Android and iOS devices in the Google Play Store and App Store, respectively. You can start using Four immediately after downloading the app and signing up for an account.
Bread is the solution for those who hate waiting in line. The app lets you shop online on hire-purchase terms. This service offers a much longer repayment schedule compared to Perpay. You can choose the financing option that suits you best for every purchase.
Bread partners with retailers to make your shopping more convenient, and the business model can boost your cash flows. Unlike Perpay and most of its competitors, Bread checks your credit scores and reports repayments to unspecified credit bureaus.
The repayment periods include:
- 12 months
- 24 months
- 36 months
The interest rates for credit purchases range from 6.99% to 29.99% APR. However, you can pay in installments to avoid interest rates.
The longer you take to repay, the more a purchase costs you in the long run. Thus, Bread doesn’t have to levy any late repayment fees.
The big difference between Bread and Perpay is that Perpay requires you to provide payroll information while Bread doesn’t.
Acima is a buy-now, pay-later service that makes life easier by allowing customers to finance their purchases without using credit cards. The app allows customers to shop now and pay later, in monthly or bi-weekly installments.
Acima runs a soft credit check to avoid denting your credit scores, and its approvals are based on your income.
It also offers no-credit purchases and offers a 30-60 day return policy for unsatisfactory purchases. This lease-to-own service is available for in-store and online purchases.
Acima accepts Google Pay and Apple Pay for online purchases. You can also use Acima for in-store financing through a retailer that offers the service.
You’ll make payments to Acima, and the company will then remit payments to the retailer on your behalf.
Acima is a cost-effective option for people without good credit or who want to avoid using credit cards. It’s also a good way to finance big-ticket items you can’t afford upfront.
Zebit is one of the few apps that work like Perpay, but it offers a longer repayment period. You can get a maximum of $2,500 purchasing credit and pay six months after buying. Zebit gives you access to over 1,500 high-quality brands behind products you love.
Zebit helps those with bad credit to afford large ticket merchandise. You get to credit purchase without spiking your credit card use and risk ratio. This marketplace doesn’t conduct hard credit checks to approve you.
You can be sure Zebit won’t hit you with any hidden fees. You’ll need to make a small down payment and pay the rest in installments. Credit and debit card payments are accepted.
So, how does Zebit get you? It doesn’t; it helps you avoid bad credit situations, ultimately improving your scores. Zebit is also an excellent alternative to Payday loans, title loans, and other high-cost borrowing options.
Sunbit is like Perpay, but it’s more of a B2B service as merchants and retailers are its biggest target base. The app also levies a 0-35% interest rate to customers when they lease items to buy.
Sunbit’s approval process is easy and online. You don’t have to hold awkward conversations, and 90% of customers get approved in 30 seconds. Over 12,000 stores and locations accept Sunbit, which is great because you can shop almost anywhere.
The main difference between Sunbit and Perpay is that Sunbit offers a more personal service. Moreover, you can get up to $20,000 in financing for your total purchases. Sunbit doesn’t run hard credit checks to avoid denting your credit scores.
Many great Perpay alternatives provide similar services. Some are more focused on retail, while others target businesses.
These apps all offer financing without the use of credit cards. They also don’t run hard credit checks, which is good news for those with bad credit.
Finally, these apps offer varying repayment periods and interest rates. Be sure to compare all the options before choosing one. My favorite is Afterpay, with Zip as a close second.
Cassie Riley has a passion for all things marketing and social media. She is a wife, mother, and entrepreneur. In her spare time, she enjoys traveling, language, music, writing, and unicorns. Cassie is a lifetime learner, and loves to spend time attending classes, webinars, and summits.