The enormous increase in demand for consumer financing compelled Fintech companies to broaden their services and provide consumers of many e-commerce companies that have adopted BNPL options with more complicated and unique possibilities.

Dealroom research shows that $32.4 billion was raised by Fintech firms globally in Q1 2022, demonstrating the continued importance of consumer finance and its yearly growth.

As more and more customers use BNPL today, a wide range of businesses are starting to offer their services to them,  however, not all of them can provide the best services to the clients. Here, we may examine and contrast the leading Fintech businesses of 2022 that let customers “Buy Now, Pay Later.”

AfterPay

Total Funding: $448.7M

Number of employees: 1300-1400

Total investments: 2

AfterPay Limited is an Australian Fintech company, offering its users BNPL services, with a limited amount of funds available for each purchase. Founded in 2015, Afterpay is spread in a couple of countries, such as the UK, the United States, and Canada as well, however, its consumers are mostly from Australia and New Zealand.

Pros

When it comes to POS financing, AfterPay operates quickly and typically charges no fees if payments are paid on time.

Cons

If payments are not made on time, there are significant interest charges, and you are unable to choose your payment plan or the time you can make the payment.

 

Affirm

Total Funding: $1.5B

Number of employees: 2000-2100

Total investments: 2

Affirm offers loans for both online and offline purchases. With several retail partners, it offers short-term financing options at the checkout. Making large purchases more affordable for the consumers.

 

Pros

There are no up-front or early payment penalties. The payment schedule is reasonable, and applying for the loan is easier than with rival lenders.

Cons

Any type of late payment can result in a penalty cost of up to 30% and have an impact on your credit history and score.

 

Skeps

Total Funding: $10.5M

Number of employees: N/A

Total investments: 2

Skeps is a cloud-based customizable system that lenders and merchants can use to find prospective credit options for their clients to have the chance of success. Skeps use private blockchain technology to aggregate data from several platforms in a secure and compliant manner for businesses and merchants. The business was established in 2018.

 

Pros

There are no interest charges for on-time payments, and the application procedure doesn’t take much time.

Cons

Increasing charges if the payment is not paid on time, the payment plan is not customer customized, and can have a bad effect on credit score.

Klarna

Total Funding: $3.7B

Number of employees: 4700-4800

Total investments: 5

The financing platform Klarna enables customers to use Buy Now Pay Later services. To make payments, you can employ extended financing, delayed payments, and installment payments. Whether buying from boutique shops, high-end brands, or department stores, it is easy to use. Swedish business Klarna was established in Stockholm in 2005.

Pros

There are a few different financing options available, there are no late fees for payments made on time, and payment plans can be partially personalized.

Cons

High late payment and chargeback penalties, a strict credit check required when applying for money, and relatively small borrowing amounts.

SplitIt

Total Funding: $264.6M

Number of employees: N/A

Total investments: 5

SplitIt offers BNPL consumer financing options for retailers and merchants to use in their stores. Split payments are permitted for up to 24 months with no interest charged up until the due date for full payment. The customer can easily utilize their current credit or debit card with Splitit. You can use the payment option as you complete your purchase at the merchant because there is no registration required.

Pros

There are many different merchants and stores implementing SunBit services, and there are no upfront costs or late payment penalties.

Cons

SunBit has fees if the payments are not made on time, and if you are a retailer, you may have to pay monthly fees as well to have their services available on your platform.

 

Divido

Total Funding: $54.9M

Number of employees: 90-100

Total investments: 3

Divido is a Fintech company, which provides consumer finance to retailers who want to offer BNPL to their customers. Divido offers interest-free payment plans to their clients which means that the consumers have to pay fees on every payment. The company was founded in 2014 in the UK.

Pros

Customers have a choice of vendors and a quick application process to get the product they require.

Cons

Customers have a choice of vendors and a quick application process to get the product they require.

SunBit

Total Funding: $210M

Number of employees: 300-350

Total investments: N/A

Another platform for consumer lending is Sunbit, which provides BNPL to finance consumers’ needs. Currently, the organization focuses mostly on healthcare.

Pros

Customers have a choice of vendors and a quick application process to get the product they require.

Cons

Customers have a choice of vendors and a quick application process to get the product they require.

ChargeAfter

Total Funding: $61M

Number of employees: 100-150

Total investments: 11

What is ChargeAfter? ChargeAfter is a pioneering worldwide lender in BNPL consumer financing that was established in 2017 and takes the best approach to innovations. It is a global lending financing platform that connects merchants and consumers. Its new implementations were all personalized for both consumers and retailers. Because of this, when they utilize the ChargeAfter financing platform for the shop now pay later service, both parties are satisfied. One of the best things that ChargeAfter provides to its customers is Waterfall consumer financing, which enables anyone to apply for the money at the point of sale only once and instantly connects you with the best lender. This tool saves time and provides the customer with assured BNPL funding.

Pros

The biggest advantage is having reliable lenders on the ChargeAfter platform. All of the partner lenders are reputable and have years of experience. A simple application process with almost immediate results and a good possibility of approval. 

Cons

May have extra fees if the payment is not done.

Finally, we can say that while many global lending platforms can provide BNPL services in different ways, each one may have pros and cons and occasionally artificial advantages, there can only be one platform that offers the best services to both retailers and the company’s customers. At the moment, ChargeAfter is leading the consumer financing field thanks to its transparency and committed work that is customized toward customers rather than the company itself.

About ChargeAfter

ChargeAfter is a leading multi-lender platform for Buy Now pay later (BNPL) Consumer Financing. It connects businesses with the most reliable lenders, enabling them to offer customers the greatest financing solutions. With the best system of Waterfall Financing, ChargeAfter guarantees BNPL lending to every shopper, by matching the most relevant lender to every client. Using the unique consumer financing technology, ChargeAfter provides all parties, merchants, lenders, and consumers, with the best shopping experience. Phoenix, MUFG, VISA, Bradesco, BBVA, Synchrony, PICO Partners, CITI, Propel Venture Partners, Plug and Play, and other companies worldwide are among the investors of ChargeAfter.