Small businesses are always looking for ways to increase sales, improve customer experience, and offer more flexible payment options. One of the most effective ways to do this is through Buy Now, Pay Later (BNPL) services, which allow customers to split their payments into manageable installments instead of paying the full amount upfront.
Afterpay has been a leading BNPL provider, helping businesses reduce cart abandonment and boost average order value by allowing customers to make interest-free payments over time. However, not every small business finds Afterpay to be the best fit due to factors like higher transaction fees, limited merchant control, and restricted integrations with certain platforms. Some businesses also look for alternatives that provide better customer approval rates, lower fees, and more flexible financing options.
With the rapid growth of the BNPL industry, several platforms now offer similar or even better payment solutions than Afterpay, catering specifically to small businesses, service-based businesses, and online stores. Whether you need a BNPL provider with lower fees, better integration, in-store financing, or higher customer approval rates, there are plenty of options to choose from.
I will introduce the best Afterpay alternatives for small businesses, highlighting platforms that offer better flexibility, lower costs, and seamless payment processing to help businesses increase conversions and provide a better shopping experience.
Klarna is a flexible alternative with multiple payment options
Klarna is one of the most well-known BNPL providers and a great alternative to Afterpay. It offers various payment options, including pay-in-4 installments, pay later in 30 days, and financing for up to 36 months. This flexibility makes it a popular choice for small businesses looking to attract a wider customer base.
- Supports multiple payment plans
- Seamless integration with Shopify, WooCommerce, and other platforms
- Merchant protection against fraud and chargebacks
- High customer approval rate compared to Afterpay
Sezzle offers an easy-to-use BNPL service with interest-free payments
Sezzle is designed specifically for small businesses that want a simple, affordable BNPL solution with interest-free installment plans. It provides an easy sign-up process and faster approvals, making it accessible to a larger audience.
- Easy integration with online stores
- Interest-free installment payments
- No credit impact for customers
- Higher approval rate than Afterpay
Affirm is best for businesses selling high-ticket products
Affirm is a great option for businesses selling expensive products, offering longer-term financing options ranging from 3 to 48 months. Unlike Afterpay, which is focused on short-term installment plans, Affirm is ideal for businesses that sell high-value items like electronics, furniture, and appliances.
- No hidden fees or late charges for customers
- Long-term financing for larger purchases
- Merchant-friendly fraud protection and fast payouts
- Great for businesses with higher average order values
Splitit allows customers to use their credit cards for installment payments
Splitit offers a unique BNPL service that lets customers use their existing credit cards to split payments into installments with no interest or additional credit checks. Unlike Afterpay, this model reduces merchant fees and makes payments more accessible.
- No new credit lines or applications needed
- Merchants get paid upfront while customers pay in installments
- No additional fees for customers
- Works well for businesses looking to reduce BNPL processing costs
PayPal Pay in 4 is perfect for businesses already using PayPal
PayPal Pay in 4 is an interest-free installment plan that allows customers to split purchases into four payments over six weeks. It is an excellent alternative for businesses that already accept PayPal and want to offer BNPL without extra setup costs.
- Seamless integration with PayPal Checkout
- No extra merchant fees beyond standard PayPal processing rates
- Widely trusted by online shoppers
- Fast approval process with high acceptance rate
Zip (formerly Quadpay) is a mobile-friendly BNPL solution
Zip allows customers to split their payments into four interest-free installments, similar to Afterpay, but with a stronger focus on mobile shoppers. It provides a user-friendly app and fast merchant integration, making it an effective alternative for e-commerce stores and mobile-first brands.
- Fast integration with e-commerce platforms
- Mobile-first checkout experience
- High customer approval rates
- Interest-free installment options
Sunbit is best for local businesses and in-store BNPL options
Sunbit is a point-of-sale financing solution designed specifically for local businesses, including retail stores, auto repair shops, and healthcare providers. Unlike Afterpay, which primarily serves online stores, Sunbit focuses on in-store financing.
- Best suited for physical stores and service-based businesses
- High approval rates for customers
- Flexible repayment terms from three to 24 months
- Works seamlessly with retail and POS systems
Choosing the Best Afterpay Alternative
While Afterpay is a popular BNPL provider, many small businesses are looking for more flexible, cost-effective alternatives that align with their specific needs. Klarna and Sezzle provide interest-free installment options, Affirm is ideal for high-ticket sales, and Splitit reduces merchant costs by using existing credit lines. Businesses already using PayPal can easily implement PayPal Pay in 4, while Zip and Sunbit cater to e-commerce and in-store financing needs.
Selecting the right Afterpay alternative depends on factors like business type, transaction size, and customer preferences. By integrating the right BNPL solution, small businesses can increase conversion rates, boost customer loyalty, and make high-value purchases more accessible to shoppers.
Interesting Reads:
How to Add Afterpay to WooCommerce?
Top 5 WooCommerce Deposit & Partial Payments Plugins for Flexible Shopping
