Afterpay Buy Now, Pay Later: 2024 Review

Afterpay is best for borrowers who only need six weeks to pay off their purchase

While Afterpay does have a monthly payment option that spreads payments out over six or 12 months, the lender charges interest on those payments. Instead, a customer can enjoy a series of smaller payments over a span of six weeks using the pay-in-four payment plan. You’ll make the first payment once your order is approved, then three more payments every two weeks. None of your payments will incur interest as long as you pay on time. To benefit from this plan, you must pay off your purchase within six weeks.

Afterpay purposes

Afterpay customers can use the service to purchase clothing and accessories, beauty and personal care products, home and garden and even plane tickets from any retailer that partners with Afterpay. Users can shop online and pay with Afterpay at thousands of businesses nationwide and with participating merchants in New Zealand, Canada and the U.K. However, there may be an exchange rate. Some users can also purchase gift cards, depending on how long they’ve been a customer and if they’ve had any late payments.

Where Afterpay stands out

• No minimum purchase amount: While some participating retailers may have a set minimum purchase amount, Afterpay doesn't.

• Financial hardship policy: While not completely outlined on the website, Afterpay does have a financial hardship policy that protects shoppers regardless of the amount owed.

• Won’t hurt your credit: Only a soft credit check is required for approval, so your credit score won’t take a hit with a hard pull. Your credit will not be damaged if you’re late on a payment since payments aren’t reported to the credit bureaus. 

Where Afterpay falls short

• Maximum amount not specified: Afterpay’s spend limit is not specified on the site because it is unique to each user. To get your initial spending limit, you must create an account.
• Only one way to contact customer service: Despite customer service being available seven days a week, there's only one way to contact Afterpay. The contact form is tucked away in the help section of the website, with no option to email directly, chat or call.
• Doesn’t help you build credit: While credit cards and other loans can help you improve your credit score by reporting on-time payments to credit bureaus, you won’t be able to improve your score by handling this debt responsibly.

Afterpay customer resources

Customer Support

Afterpay can only be contacted online through a form submission. While the company states customer service is available seven days a week — minus a few holidays — it doesn't provide hours of operation and claims that response times vary.

Digital Experience

Afterpay’s app has a 4.9 rating on Apple and a 4.1 rating on Google Play, giving it an average rating of 4.5 out of five. Reviewers note that it is convenient and easy to use and has allowed them to make several purchases. However, several reviews claimed the app required an update that was not available.

How this lender compares

Afterpay vs. PayPal

Just like Afterpay, PayPal's buy now, pay later loan doesn't require a minimum credit score and uses a soft credit check for its BNPL option. It also offers a pay-in-four plan or pay monthly option. However, PayPal’s monthly payment option has a purchase amount up to $10,000 and offers more repayment terms than Afterpay. Its three-, six-, 12- or 24-month options may make it a better option for large payments.

Afterpay vs. Klarna

With 575,000 retailers offering Klara, there are more places to shop and use Klara than Afterpay. Klara also has an additional payment option. Along with a pay-in-four and monthly payment plans, Klara customers can choose to pay up to 30 days after their order. 

Do you qualify for Afterpay?

To be eligible to use Afterpay you must:

• Reside in one of the 50 U.S. states or the District of Columbia
• Be at least 18 years of age
• Have a verifiable email address and mobile phone number
• Have a valid U.S. delivery address
• Have authorization to use a credit card, debit card or checking account
• Shop retailers that offer Afterpay

To be eligible to use Afterpay’s monthly payment option, you cannot reside in Nevada, West Virginia, Hawaii or New Mexico.

Afterpay performs a soft credit check when you set up your account to determine your initial spend limit, eligibility and interest rate (for the pay monthly option). A soft credit check will not affect your credit score.

How Bankrate rates Afterpay