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Afterpay Competitors and Alternatives Featured Image by Clay Banks

Top 20 Afterpay Competitors and Alternatives

Afterpay is a financial technology (fintech) company headquartered in Melbourne, Australia. Nick Molnar and Anthony Eisen founded the company in 2014 to offer a buy now, pay later (BNPL) service.

In May 2016, Afterpay went public via an AUD 25 million IPO and started trading on the Australian Securities Exchange. The company merged with Touchcorp in Jun 2017 to form the Afterpay Touch Group and rebranded to Afterpay Limited in Nov 2019. In Jan 2022, American payments company Block Inc. acquired Afterpay for $29 billion. Afterpay has over 16.2 million customers globally. [1]

Afterpay expanded its market presence and customer base through strategic partnerships and acquisitions. The company entered the US market in May 2018 and partnered with Visa Inc. and several retailers, including Anthropologie, Free People, and Urban Outfitters. By May 2020, Afterpay had over five million active customers in the US.

In Aug 2018, the company acquired a 90% stake in UK-based BNPL service Clearpay. Afterpay operates in the US, Australia, the UK, Canada, and New Zealand. In May 2023, the Australian government introduced new regulations for the BNPL industry. These rules can disadvantage Afterpay and other companies in the Australian BNPL sector.

Afterpay has to fend off stiff competition from several fintech firms, including Klarna, Sezzle, PayPal, Affirm, Splitit, Zip, GoCardless, and Amazon Pay. [2]

Here is an in-depth analysis of Afterpay’s top competitors and alternatives:

1. Klarna

Year founded: 2005
Headquarter: Stockholm, Sweden

Klarna is a Swedish fintech company that offers online and direct payments and BNPL services. The company launched the Klarna card and its Pay-Now service in the US in Nov 2021 to provide interest-free payments in stores and online. In 2021, Klarna had around 7,000 employees, but it laid off over 1,000 workers in May and Sep 2022. [3]

Klarna and Afterpay offer BNPL services in the US and Canada. Klarna also competes against Afterpay’s subsidiary Clearpay in the UK. In 2022, Klarna introduced its physical card in the UK and partnered with Marqeta to provide Visa cards in the US.

The fintech planned to go public in 2022 but shelved its IPO ambitions after losing $787 million in valuation within nine months. Yet, Klarna is the top Afterpay competitor and alternative. [4]

2. Sezzle

Year founded: 2016
Headquarter: Minneapolis, Minnesota

Sezzle is a fintech company that offers BNPL services in the US, Canada, Germany, and India. In 2022, Sezzle ended unprofitable merchant relationships and tightened customer underwriting. This move wiped off 19% of its underlying merchant sales (UMS) in Q4 2022. The company plans to lay off nearly 20% of its staff in 2023. [5]

Sezzle and Afterpay offer BNPL services and operate in the US and Canada. Sezzle’s BNPL platform serves 3.4 million customers and 47,000 merchants. The company agreed to merge with Zip Co in Feb 2022, but the deal collapsed in Jul 2022.

In Oct 2022, Sezzle secured $100 million in funding to expand its BNPL service and global reach. Sezzle is one of the top alternatives to Afterpay. [6]

3. PayPal

Year founded: 1998
Headquarter: San Jose, California

PayPal is a global fintech company that offers financial technology solutions, including an online P2P payment processing platform, PayPal Credit, and Pay in 4. In Jun 2022, PayPal launched a new BNPL product, PayPal-Pay Monthly. Over 22 million consumers used PayPal’s BNPL service in 2022. [7]

PayPal dominates the online payment processing software sector with over 43% market share. The fintech company owns Braintree and Venmo platforms and operates cross-border, branded checkout, and unbranded checkout businesses.

In 2022, PayPal’s online payment infrastructure served 435 million active users, including 35 million merchants. PayPal is a formidable Afterpay competitor. [8]

4. Affirm

Year founded: 2012
Headquarter: San Francisco, California

Affirm operates one of America’s largest BNPL platforms. The company went public in Jan 2021 at a valuation of $12 billion, becoming the first publicly traded BNPL provider in the US. In 2022, Affirm struggled to navigate the economic challenges in the fintech sector and lost nearly 80% of its value. [9]

Affirm offers financial technology solutions to global brands, including Amazon, Apple Pay, Shopify, Walmart, Adidas, and Peloton. In Jun 2023, Amazon.com partnered with Affirm to provide Affirm’s BNPL service through Amazon Pay. US merchants offering Amazon Pay can now use Affirm’s Adaptive Checkout as a payment option. The tie-up with the world’s largest e-tailer increases Affirm’s competitive advantage over Afterpay. [10]

5. Splitit

Year founded: 2012
Headquarter: New York, New York

Splitit is an American fintech firm that offers a BNPL service. The company also provides a merchant-branded Installments-as-a-Service (IaaS) platform. In Mar 2023, Splitit launched IaaS integration with the SAP Commerce Cloud to power BNPL offerings for enterprises that serve B2B, B2C, and B2B2C markets.

Splitit enables merchants globally to provide interest-free monthly payment plans to customers via credit and debit cards. In Apr 2023, Splitit unveiled a super-fast payment experience called SplititExpress. This solution allows BNPL customers to check out in less than two seconds.

The fintech firm was ranked #114 on the 2022 Deloitte Technology Fast 500 and is one of the fastest-growing Afterpay competitors. [11]

6. Zip Co. Limited

Year founded: 2013
Headquarter: Sydney, Australia

Zip is an Australian fintech company specializing in installment payment and BNPL services. Users can shop online and use the Zip platform to pay for purchases over four installments. According to G2, Zip has a 4.4-star rating out of 5 versus 4.1 stars for Afterpay.

Zip is Australia’s second-largest BNPL firm behind Afterpay. In Mar 2023, Zip announced plans to divest its businesses in Europe and South Africa to focus on Australia, New Zealand, and the US. The company shut down its operations in Singapore and the Middle East. Zip Co is one of the best alternatives to Afterpay for BNPL and installment payments. [12]

7. GoCardless

Year founded: 2011
Headquarter: London, United Kingdom

GoCardless offers an account-to-account payment platform. The company helps businesses automate recurring payments and collect instant, one-off payments from customers. In Feb 2022, GoCardless raised $312 million in Series G funding to accelerate its growing footprint in the open banking space.

GoCardless serves over 70,000 businesses. Retailers, companies, and brands use its online platform to collect payments from customers’ banks. In Feb 2023, GoCardless launched a white-label solution that enables bank-to-bank payments. Third-party payment providers can use the service to allow clients to send and receive funds directly from their bank accounts. GoCardless is an innovative Afterpay competitor. [13]

8. Amazon Pay

Year founded: 2007
Headquarter: Seattle, Washington

Amazon Pay is a digital wallet offered by Amazon.com, Inc. The global eCommerce giant partners with several fintech firms to provide BNPL and online payment services. In 2022, Amazon had around 1.5 million employees.

Amazon Pay offers a retailer’s payment service, while Afterpay provides a BNPL solution. In Jun 2023, Amazon.com added Affirm’s BNPL to the Amazon Pay platform. US retailers using Amazon Pay can now leverage Affirm’s Adaptive Checkout service to offer biweekly and monthly payment options. Amazon is a worthy competitor for Afterpay. [14]

Amazon Pay Photo by Bryan Angelo on Unsplash
Photo by Bryan Angelo on Unsplash

9. ViaBill

Year founded: 2010
Headquarter: New York City, New York

ViaBill is a fintech company that offers BNPL services. The firm launched its BNPL product across Spain, Denmark, and the US in 2021. In Feb 2022, ViaBill raised $120 million to extend its BNPL to brick-and-mortar stores. [15]

ViaBill and Afterpay provide BNPL services. Shoppers can use ViaBill’s BNPL to pay for purchases in installments or the total amount. The platform integrates with the checkout flow of retailers’ websites and supports online and brick-and-mortar stores. ViaBill is a worthy alternative to Afterpay.

10. Visa Inc.

Year founded: 1958
Headquarter: San Francisco, California

Visa is a multinational financial services corporation. It is one of the world’s most valuable companies. In 2022, Visa had around 26,500 employees.

Visa facilitates electronic funds transfers globally through branded credit cards, debit cards, and prepaid cards. In May 2023, Visa partnered with Splitit to offer a BNPL solution to merchants. The two-year deal combines Splitit’s IaaS offering with Visa Instalments to form a BNPL service. Visa is the latest entrant into the BNPL space and the newest competitor for Afterpay. [16]

11. FuturePay

Year founded: 2013
Headquarter: Lehi, Utah

FuturePay is a fintech company specializing in digital credit solutions. The company offers the MyTab platform that simplifies the checkout process. In Oct 2022, FuturePay integrated MyTab with Bold Commerce’s checkout. Consumers can access financing solutions via the MyTab platform. [17]

FuturePay and Afterpay provide financial technology solutions for businesses, but Afterpay focuses on BNPL, while FuturePay specializes in extending consumers’ credit lines.

Retailers and brands can use FuturePay’s MyTab platform to offer financing options to shoppers. The service also allows customers to reuse their credit on a long-term basis. FuturePay is one of the best alternatives to Afterpay for credit seekers.

12. Mastercard Inc.

Year founded: 1966
Headquarter: Purchase, New York

Mastercard Inc. is the world’s second-largest payment-processing corporation. The company unveiled its BNPL program, Mastercard Installments, in Sep 2021. In 2022, Mastercard had around 29,900 employees.

Mastercard is a global card network. Merchants can use the Mastercard Installments service to offer installments to customers through direct integrations into their platforms. In Aug 2022, the company started enrolling merchants into Mastercard Installments. Mastercard is well-positioned to compete against Afterpay and capture market share in the BNPL sector. [18]

13. Zilch

Year founded: 2018
Headquarter: London, United Kingdom

Zilch is a BNPL company that operates across Europe. The fintech firm became a unicorn in Sep 2021 after securing $110 in funding at a $2 billion valuation. In 2022, Zilch raised $50 million in a Series C round to support its expansion in the US market.

Zilch competes against Afterpay’s subsidiary Clearpay in the UK, but it is also venturing into the US market, where Afterpay already operates. In Feb 2023, Zilch partnered with UK debt charity StepChange to provide credit to consumers affected by the high cost of living. Zilch is one of the top competitors for Afterpay in the UK. [19]

14. Apple Pay

Year founded: 2014
Headquarter: Cupertino, California

Apple Pay is an online payment service offered by Apple, Inc. In Mar 2023, the company launched Apple Pay Later, powered by the Mastercard Installments program. Apple Pay Later users can manage, track, and repay loans in their Apple Wallet. [20]

Apple Pay Later users can split their purchases into four payments over six weeks and can also apply for Apple Pay Later loans of between $50 and $1,000. However, the loans can only be used for in-app and online purchases from merchants who accept Apple Pay. Apple Pay is the best alternative to Afterpay for Apple Wallet users.

Apple Pay Photo by Medhat Dawoud on Unsplash
Photo by Medhat Dawoud on Unsplash

15. Tymit

Year founded: 2017
Headquarter: London, United Kingdom

Tymit is a British fintech startup that offers BNPL services. The company competes against Afterpay’s subsidiary Clearpay in the UK market. In Oct 2022, Tymit raised £23 million in a Series A funding round to accelerate product development. [21]

Like Afterpay, Tymit offers BNPL services and credit cards. Tymit users can delay payments for 30 days and spread the cost over three months.

In 2022, Tymit announced plans to launch its B2B2C installment program for merchants. Online stores can use its branded digital card, partner-branded card, or white-label credit card. Tymit is one of the best alternatives to Afterpay in the UK.

16. Perpay

Year founded: 2015
Headquarter: Philadelphia, Pennsylvania

Perpay is an American BNPL company. Shoppers use Perpay’s online marketplace to shop from over 1,000 retailers, like HP, Dyson, and PlayStation, which use Perpay at checkout. Then, they use Perpay’s BNPL service to split their purchases into a series of payments. In 2022, Perpay had over 4 million members.

The main competitive advantage of Perpay is its flexible repayment options. Customers can choose how many payments they want to make over time, and the installments are automatically deducted from their paychecks. Perpay is one of the best alternatives to Afterpay for borrowers who are employed full-time. [22]

17. Alipay

Year founded: 2004
Headquarter: Pudong, Shanghai, China

Alipay is a third-party payment platform. It is owned by Alibaba Group, a Chinese multinational tech company. In 2022, Alibaba had 254,941 employees.

Alipay specializes in mobile and online payments. In Jan 2023, the company partnered with BNPL provider Splitit to allow customers to make purchases in installments. Shoppers on the Alipay e-commerce market can also leverage Splitit’s IaaS platform to pay after delivery. As a subsidiary of Alibaba Group, Alipay has enough resources to compete against Afterpay. [23]

18. PayZen

Year founded: 2019
Headquarter: San Francisco, California

PayZen is a BNPL service company specializing in the healthcare industry. The fintech firm seeks to tackle healthcare affordability with personalized, no-cost patient financing solutions. In Nov 2022, PayZen closed a $220 million growth round. [24]

PayZen and Afterpay offer BNPL services, but PayZen only focuses on the healthcare sector. In 2022, PayZen expanded its warehouse facility due to increased demand for its products by healthcare providers. PayZen is the best alternative to Afterpay for healthcare BNPL.

19. Laybuy

Year founded: 2016
Headquarter: New Zealand

Laybuy is a New Zealand fintech firm that offers BNPL services. The company was listed on the ASX, but got delisted in Jan 2023 after its share price dropped to AUD 0.026. [25]

Laybuy competes against Afterpay and Clearpay in New Zealand, Australia, and the UK. According to Laybuy CEO and Co-Founder Gary Rohloff, about 75% of the company’s customers are women between 24 and 35 years. The fintech firm will focus on this market segment to seek profitability after being delisted from ASX. Laybuy is still a worthy alternative to Afterpay.

20. Apruve

Year founded: 2013
Headquarter: Minneapolis, Minnesota

Apruve is a payment platform that offers trade credit automation programs. The company caters to global enterprises seeking transformative changes in their procure-to-pay process. In Dec 2022, Kansas-based TreviPay acquired Apruve to expand its order-to-cash technology, merchant invoicing solutions, and geographical reach. [26]

Apruve offers a strong suite of payment solutions for global enterprises. In 2022, Apruve’s parent company TreviPay processed $7 billion in transaction volume across 32 countries and 19 currencies. Apruve is an emerging competitor for Afterpay.

 References & more information

  1. Butler, B. (2022, Jul 12). After co-founders take home record $264 million as Australian executive pay bounces back. The Guardian
  2. Ainsworth, K. (2023, May 21). Buy now, pay later industry to be regulated under Credit Act as part of changes by the federal government. ABC
  3. Browne, R. (2022, Nov 24). Klarna CEO says the firm was lucky to cut jobs when it did. CNBC
  4. Burroughs, C. (2022, Dec). Buy-now, pay-later kingpin Klarna’s valuation dropped from 45.6 billion to $6.7 billion in 2022. Business Insider
  5. Nunez, A. (2023, Mar 1). Klarna and Sezzle highlight Q4 profitability progress following the challenging 2022. Insider Intelligence
  6. FG Editor (2022, Oct 19). BNPL Sezzle secures $100m credit after merger falls through. Fintech Global
  7. Perez, S. (2022, Jun 15). PayPal expands its “pay later” options with a more flexible “PayPal Pay Monthly” service. TechCrunch
  8. Bhade, M. (2023, May 26). PayPal Stock: Should You Buy the Current Dip? The Motley Fool
  9. Sweet, K. (2022, Sep 10). Affirm weathering decreasing stock price. Post Journal
  10. Broadbent, G. (2023, Jun 8). Affirm strengthens ties with Amazon despite the exclusivity agreement ending. Insider Intelligence
  11. Splitit USA, Inc. (2022, Nov). Splitit was named one of the fastest-growing companies in North America on the 2022 Deloitte Technology Fast 500. PRNewswire
  12. Reuters Staff (2023, Mar 30). Australia’s Zip Co to divest businesses in Europe and South Africa. Reuters
  13. PYMNTS (2023, Feb 8). GoCardless Launches White-Label Product Enabling Bank-to-Bank Payments. PYMNTS
  14. DC 360 Staff (2023, Jun 7). Amazon Pay adds Affirm buy-now-pay-later service. Digital Commerce 360
  15. ViaBill (2022, Feb 15). ViaBill Raises $120m to Bring Buy Now Pay Later to Physical Retail. Business Wire
  16. PYMNTS (2023, May 5). Splitit and Visa Partner on Installments. PYMNTS
  17. TP News (2022, Oct 17). FuturePay integrates its MyTab platform with Bold Commerce’s checkout. The Payers
  18. Nunez, A. (2022, Aug 15). Mastercard reportedly begins the widespread rollout of the BNPL program—though not everyone is on board. Insider Intelligence
  19. FG Editor (2023, Feb 7). Zilch becomes the first BNPL to partner with UK debt charity StepChange. Fintech Global
  20. Capoot, A. (2023, Mar 28). Apple launches its Pay Later service. CNBC
  21. Johansson, E. (2022, Oct 26). Klarna rival Tymit bags £23 million as the BNPL industry keeps struggling. Retail Banker International
  22. Wangman, R. (2023, Apr 17). Perpay Review 2023. Business Insider
  23. Williams, C. (2023, Jan 16). Alipay rolls out BNPL functionality through Splitit partnership. Payment Expert
  24. PayZen (2022, Nov 22). PayZen Raises $220 Million Growth Round for Personalized Healthcare Affordability. Business Wire
  25. Dojan, S. (2023, Feb 21). No change in strategy despite share price collapse: Laybuy CEO. Retail Banker International
  26. TreviPay (2022, Dec 8). TreviPay Acquires Apruve. Business Wire
  27. Featured Image by Clay Banks

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Kevin Johnson

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