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Afterpay Buy Now, Pay Later: 2024 Review

Updated on Jan. 9, 2024
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At a glance

4.4
Rating: 4.4 stars out of 5
Bankrate Score
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Availability
Rating: 4.2 stars out of 5
4.2
Affordability
Rating: 4.7 stars out of 5
4.7
Customer Experience
Rating: 4.4 stars out of 5
4.4

About Bankrate Score

Founded in 2014 in Australia, Afterpay has amassed over 22 million global users and over 240,000 merchant partners. It offers a single pay-in-four option and monthly payment option of U.S. customers outside of select states.

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Loan amount Not specified
Rates
APR from 0%-35.99%
Clock Wait
Term lengths 6 weeks-12 months

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

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Afterpay pros and cons

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Pros

  • No minimum purchase amount
  • Access to rewards program
  • Financial hardship policy
Red circle with an X inside

Cons

  • Maximum amount not specified
  • Low app rating on Google Play
  • Only one way to contact customer service

Best for: Borrowers who only need six weeks to pay off their purchase

Because the only zero-percent option Afterpay offers is its pay-in-four one, it is best for those who can complete their payments in six weeks or less.

Do you qualify? 

It's generally easier to get approved for an Afterpay installment plan than it is to get approved for a traditional personal loan. Instead of creditworthiness and repayment history alone, Afterpay — and similar BNPL services — base approval on usage and basic personal and financial information.  

In order to be eligible, you must meet the following criteria:

  • At least 18 years old.
  • Resident of the U.S. and living in a U.S. state or Washington, D.C.
  • Valid and verifiable email address and mobile number.
  • Valid delivery address in the U.S.

The following factors are also considered when determining applicant eligibility: 

  • How long you've been an Afterpay shopper.
  • How many Afterpay orders you've repaid. 
  • If your card has sufficient funds for the first amount available to spend. 
  • Number of loans you have with Afterpay. 
  • Total cost of what you want to finance.
  • Overall value of what you want to finance.

How this lender compares

Afterpay vs. PayPal 

PayPal's buy now, pay later loan offers a similar financing option. PayPal doesn't require a minimum credit score, and uses a soft credit check for its BNPL option. However, it offers a pay-in-four maximum of up to $1,500 with no interest, which may make it better for larger purchases.

Afterpay vs. Klarna 

Klarna also offers BNPL options, however it offers both a pay-in-four and 30-day option with no financing charges. If you're looking to structure your payment as two installments over 30 days, Klarna may be the better option. 

Earnest: In the details

What we like and what we don’t like

What we like

  • No minimum purchase amount: Some retailers may have a set minimum purchase amount, but Afterpay states that it doesn't.
  • Access to rewards program: Afterpay allows shoppers to make eligible purchases in store that can then translate to offers redeemable on future purchases made with Afterpay either in store or online. 
  • 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.

What we don’t like

  • Maximum amount not specified: The limit of Afterpay's pay-in-four option isn't provided.
  • Low app rating on Google Play: Afterpay has over 154,000 reviews on Google Play with an average rating of 3.8 stars as of January 2024. For an app-based service, this could spell consistent issues for Android users.
  • 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.

How to contact Afterpay

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.

How to take out a loan with Afterpay 

Taking out a loan with Afterpay is a simple process that offers immediate acceptance or denial. You can either download the mobile app, create an account and start shopping with its approved online merchants, or you can apply through one of Afterpay's online partners. 

When shopping through an online partner's website, you can expect to go through four basic steps:

Afterpay features and perks 

The Pulse Rewards structure for Afterpay is closing in late January 2024, and a new loyalty rewards structure will be introduced. Under Pulse Rewards, shoppers earned rewards for paying off installment plans. The new loyalty rewards structure should be announced in early 2024.

Fees and penalties

Afterpay charges a late fee that is capped at 25 percent of the order value. If you don't believe you will make your payment by the due date, contact Afterpay customer support right away.

Afterpay frequently asked questions

How Bankrate rates Afterpay 

Overall Score 4.4
Availability 4.2 Having only one 0 percent installment option and not specifying the maximum amount that can be borrowed lowered Afterpay's score.
Affordability 4.7 Zero fees aside from a late fee and a rewards program make for a high score in this category.
Customer Experience 4.4 Support is available seven days a week, but only through an online form. And its Google Play rating is low compared to competitors.

Methodology

The Bankrate team did a complete analysis of the features and services offered by the most well-known buy now, pay later apps in the industry. Then our experts developed a scoring system to rate these apps, focusing on three main areas:

  • Availability: We look at the minimum and maximum loan amounts offered by the apps, as well as the number of interest-free plans they offer. Apps offering more than one interest-free plan and those with the most flexible loan amounts rank higher in this category.
  • Affordability: We evaluate the APR ranges apps assess on purchases once the interest-free period ends. Additional fees, exclusive perks and discounts are also rated. Apps with the lowest APRs, fewer fees and more perks obtain the highest scores in this category.
  • Customer experience: Purchasing flexibility, as well as return, exchange and refund policies are vetted in this section. Mobile app rating, number of consumer complaints with the CFPB and customer support are also taken into account. Apps with more flexibility and lower complaints rate higher in this category.

Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.