Top BNPL Companies in the USA
The buy now, pay later (BNPL) market in the United States has grown in popularity in recent years, as it revolutionizes how consumers make purchases. With more and more American shoppers seeking flexible payment options, BNPL has become a preferred choice for many.
The surge in demand for BNPL services is driven by its convenience, interest-free payments (with some providers), and its ease of use both online and in-store.
This rising popularity, reflected in the increasing number of BNPL users, has led to a boom in the number of service providers, all aiming to capture a share of this expanding sector. With so many players in the market, it’s essential to know which BNPL companies stand out. In this article, we explore the top BNPL companies in the USA, highlighting their market influence and what makes each unique.
Top buy now, pay later companies in the USA: table
|
Rank |
Companies offering buy now, pay later services in the USA |
Share of buy now, pay later users who have used the following companies |
|
1 |
PayPal |
68.1% |
|
2 |
Afterpay |
25.9% |
|
3 |
Affirm |
21.9% |
|
4 |
Klarna |
21.5% |
|
5 |
Perpay |
10.4% |
|
6 |
Zip |
9.8% |
|
7 |
Sezzle |
8.8% |
BNPL companies in the USA: top seven
1. PayPal (68.1%)
PayPal leads the BNPL market in the USA, with 68.1% of shoppers utilizing its BNPL service, known as “Pay in 4.”
What sets PayPal apart from other BNPL companies in the USA is its deep integration with millions of merchants and the trust and reputation it has built over the years as a leading digital payment provider. Its strong brand recognition and existing user base give it a significant advantage in the BNPL space.
PayPal’s BNPL service allows customers to split purchases into four interest-free payments over six weeks, making it an attractive option for those looking to avoid interest charges.
2. Afterpay (25.9%)
Afterpay is another major player in the buy now, pay later market in the USA, with 25.9% of shoppers using its service.
Often heralded as one of the pioneers of the BNPL model, Afterpay has become synonymous with the alternative payment method. It appeals particularly to younger consumers, who appreciate its straightforward, no-interest payment plan that divides the total purchase into four installments.
Afterpay’s strength lies in its wide acceptance across major retailers and its commitment to responsible spending, with features like spending limits and upfront payment disclosures.
3. Affirm (21.9%)
Affirm ranks third on this list of the top BNPL companies in the USA, with 21.9% of users opting for its services.
Unlike other BNPL providers, Affirm offers customizable payment plans that can extend from three months to several years, depending on the purchase amount. On top of that, Affirm charges no late fees, making it an attractive option for those concerned about hidden costs.
4. Klarna (21.5%)
Klarna is a Swedish fintech company that has successfully established a strong presence in the USA. With 21.5% of local BNPL users using it, it’s one of the leading buy now, pay later companies in the USA today.
Klarna offers multiple payment options, including interest-free installments, pay later, and financing for up to 36 months. It stands out for its user-friendly app, which not only facilitates BNPL transactions but also provides shopping inspiration, exclusive deals, and financial management tools. This focus on enhancing the shopping experience, combined with its flexible payment options, has made Klarna a popular choice among American consumers.
5. Perpay (10.4%)
Used by 10.4% of US shoppers, Perpay ranks fifth on the list of the biggest BNPL companies in the USA.
Perpay operates a unique BNPL model that targets consumers with less-than-perfect credit. It allows users to build their credit score while making purchases, which is a significant differentiator in the BNPL market. Users can pay for their purchases over time through payroll deductions, minimizing the risk of missed payments.
6. Zip (9.8%)
Zip, previously known as Quadpay, is used by around one in 10 (9.8%) BNPL users. Similar to other BNPL companies in the USA, Zip offers consumers the ability to split purchases into four installments, paid over six weeks, with no interest charges.
One of Zip’s standout features is its versatility, allowing users to shop at any online store, even if the retailer does not directly support BNPL. This is achieved through its virtual Visa card feature, which can be used at checkout like a regular credit card.
7. Sezzle (8.8%)
Sezzle, used by 8.8% of US BNPL users, rounds out the top BNPL companies in the USA. Sezzle offers an interest-free installment plan while also helping users improve their credit scores through on-time payments.
The provider stands out for its focus on ethical lending practices, offering users the ability to reschedule payments without penalty, which proves useful for those facing financial challenges.