Apple Pay Later: 2024 Alternatives

With around half of Gen Z (ages 18-27) and millennial (ages 28-43) Americans — 51 percent and 55 percent, respectively — using at least one buy now, pay later (BNPL) app, according to Bankrate’s Buy Now, Pay Later Survey, Apple Pay Later was an anticipated addition to the market earlier this year.

Like other BNPL apps, it allowed consumers to divide purchases from partnering retailers into four equal installments. It also reported loan details — including repayment history — to the credit bureaus.

However, Apple cut this function In June. With it no longer available, consider a few trusted alternatives instead.

Alternatives to Apply Pay Later

If you were a fan of the Apple Pay Later feature, you may be disappointed in its demise. The upside is there are viable BNPL alternatives that are worth considering. You can use Sezzle, PayPal or Affirm to make your purchases more manageable.

Sezzle

Sezzle is a BNPL app that lets you split in-store or online purchases from participating retailers into installments. If you choose the Pay in 2 option, you pay half at the time of purchase and the remaining half in two weeks. The Pay in 4 option splits your purchase into four equal payments over six weeks. Either way, you won’t pay interest.

You can also choose the monthly installment plan, which lets you pay back Sezzle with terms up to 48 months. This will involve paying interest, with rates between 5.99 percent and 34.99 percent, although some borrowers are eligible for a 0 percent APR.

Sezzle is a viable alternative to Apply Pay Later because of its similar repayment options. If you can pay in two or four installments, you’ll avoid interest — and receive a high financing limit of $2,500. If you choose to pay through monthly installments, the maximum amount you can finance is a generous $15,000.

PayPal

PayPal also offers the option to buy now and pay later with its Pay in 4 and Pay Monthly plans. Pay in 4 is available for purchases between $30 and $1,500. Like other BNPL apps, it requires a down payment at the point of sale followed by three interest-free payments.

If you need more purchasing power, the Pay Monthly plan supports purchases between $199 and $10,000. Your repayment period will be up to 24 months, and the loan amount is subject to an APR of 9.95 percent to 35.99 percent.

Unfortunately, PayPal doesn’t offer as much wiggle room as Sezzle regarding maximum loan amounts and term lengths. Still, you can avoid interest by paying off your balance within the six-week window — and you’ll get access to PayPal’s Purchase Protection.

Affirm

Affirm is another BNPL option with two payment plans. You can choose between four equal payments or opt for monthly installments. Like other alternatives to Apply Pay Later, you can split purchases into bi-weekly payments without incurring interest. Some borrowers may be required to make a down payment, but it’s possible to pay $0 down if you qualify.

The monthly installment option is for purchases up to $5,000 over a period of three to 60 months. A soft credit check is required to access this plan, and the maximum APR is 36 percent. This is similar to personal loan rates, though personal loans require a hard credit check.

Depending on your credit profile, you could get much more borrowing power with Sezzle or PayPal. Still, Affirm is worth mentioning, largely because it skips the pesky late payment and returned payment penalty you’ll find with many other BNPL apps.

Why did Apple Pay stop offering its BNPL service?

Apple stopped offering its BNPL service around June of this year, but it didn’t provide any specific reasons for discontinuing the program. If you have an existing BNPL loan with Apple, you can access and manage the details through your Apple Wallet.

But according to 9to5Mac, Apple plans to offer installment loans in the near future. While there aren’t details on what these will look like, Apple’s installment loans will likely be accessible through debit or credit cards and lenders.