Budgets are tighter these days, and a number of new companies are disrupting the way we used to do layaway. They’re making it possible and easy for us to buy what we want now, but pay later in installments, without the interest you get from credit cards. With Buy Now, Pay Later, shoppers can complete a transaction — in store or online — and divide the total into at least four equal payments: like layaway 2.0. Amazon has even joined the trend.

Be sure to download the KCL app for money-saving tips, deals, and coupons.


How is “Buy Now, Pay Later” different from layaway?

This is better than layaway, people. With layaway, you put a deposit on an item, make payments, and pick it up once you pay off the balance.

With Buy Now, Pay Later you can take home the item before you’re done making payments. That really helps for big-ticket purchases and unexpected expenses.

Like with layaway, you can still do returns, avoid interest payments, and not totally tank your bank account.

Here are the services doing Buy Now, Pay Later:


1. Amazon will let you divide payments into five installments.

For certain new products sold and shipped by Amazon.com — including new/refurbished Amazon devices — they’ll let you divide your payment into five installments with a credit card you have on file in your Amazon account.

The first installment is due the day the order ships, with four more payments coming every 30 days until the final payment is made 120 days from the shipment date. You can pay more than the requested amount or pay off your order early if you want.

There’s no charge to use this service, and no credit check or application required. That’s a big deal. Learn more about Amazon’s monthly payment terms.


2. QuadPay lets you split payments anywhere that accepts Visa.

Sign up for QuadPay and link your credit or debit card to be able to pay with a “ghost” Visa card. Not only can you use it for online purchases through the QuadPay app, but you can also use your card for in-store purchases anywhere Visa is accepted.

All purchases are split into four payments, scheduled over a six-week period, and are linked to your preferred credit or debit card.

There’s no credit check and no fees or interest when the payments are made on time.


3. PayPal lets you “Pay in 4” at hundreds of physical stores.

The granddaddy of online payment options, PayPal, announced a new “Pay in 4” service in 2020.

Customers can use the service on purchases between $30 and $600. Like other Buy Now, Pay Later services, there’s an up-front percentage payment, then the remainder is split between three more interest-free automatic payments (connected to your bank account) over six weeks.

PayPal has the advantage of being accepted at the vast majority of online retailers, as well as many physical store chains, including:

PayPal’s other “Buy Now Pay Later” options — such as PayPal Credit and Easy Payments — are still available.


4. Afterpay lets you buy anything from their partner stores in four payments.

Look for Afterpay as a payment option during checkout at your favorite online store; the company is constantly adding new partners.

Sign up for an Afterpay account to place online orders up to $1,000 and split the cost into four payments, due every two weeks. There’s no credit check and no fees as long as your account has enough funds when the split amounts are automatically taken out. Some of the most popular Afterpay retailers include:

  • ULTA
  • Cost Plus World Market
  • Forever 21
  • DSW
  • Charlotte Russe
  • Madewell
  • American Eagle
  • Anthropologie
  • Roxy
  • Urban Decay
  • Finish Line
  • Urban Outfitters
  • Steve Madden
  • Ray-Ban
  • PacSun
  • True Religion
  • J.Crew Factory

Although many retailers don’t have Afterpay functionality at checkout, the company offers a number of gift cards for purchase, paid in four installments.

TIP: Earn perks like money-off coupons for paying on time with Afterpay’s reward program.


5. Klarna’s “Ghost Card” lets you delay payments to any online store.

Macy’s just announced they’re partnering with Klarna as a payment option at Macys.com, and it’s got people asking, “What is Klarna?”

Klarna lets you divide purchases into four payments at any online store — not just partner stores — when you shop your favorite websites through the Klarna app. At checkout, Klarna gives you a “ghost card,” or a credit card number good for the predetermined purchase amount. Your first payment is due the day of purchase, then you make additional payments every two weeks automatically with the credit or debit card you have on file.

There’s no credit check (unless you opt for longer-term financing), interest, or late fees. Keep up with timely payments, or they’ll decrease your limit for future purchases.

TIP: Klarna also has a loyalty program, where you accumulate “vibes” — $1 per vibe — that add up to rewards like gift cards.



6. Sezzle works with many retailers including Target and GameStop.

Sezzle is a split-it-into-four-payments service that has a network of online partner retailers including Target and GameStop. You can either shop via their app or check out using Sezzle during the checkout process at one of the retailers’ websites.

You get an instant decision once you apply for Sezzle (with no credit check). You’ve gotta set up your payment method so they can automatically withdraw your payment every two weeks: from your credit card, debit card, or Google Pay, or Apple Pay.


Before you read on, be sure to bookmark the KCL Target Deals page to stay informed about all the deals.


7. Four accepts Google and Apple Pay for installment payments.

Four is a split-it-into-four-payments service that allows you to shop through their apps or check out with Four during the checkout process at one of the participating retailers’ websites.

No credit check is required, and you get an instant decision when you apply for Four. Set up your payment method and they’ll automatically withdraw your payment every two weeks: from your credit card, debit card, Google Pay, or Apple Pay.


8. SplitIt gives you more time to pay — up to 24 interest-free installments.

If your favorite online retailer accepts SplitIt, you can divide your payments up into monthly payments between 3 and 24 months.

Just select SplitIt at checkout, input your preferred payment card, and set up the repayment plan to complete your purchase. Your card will be charged automatically, with no interest, credit checks, or late fees.


9. Affirm lets you set up payments for Walmart, Adidas, and more.

Like with SplitIt, you don’t have to specifically sign up for Affirm. It’s a payment option at the checkout of hundreds of online retailers, including Walmart, Adidas, Purple, Peloton, YETI, and Eddie Bauer.

It’s not my favorite, though, because they perform a credit check and charge interest. For example, Affirm’s partnership with Walmart offers repayment plans of 3, 6, and 12 months on purchases totaling $144 to $2,000 with interest rates that range from 10 to 30%.

If you’re shopping in person at Walmart, you sign up for Affirm and scan a special barcode from the Affirm app at the register to finish the transaction and begin the repayment plan.

Those are the basics, but the market is being flooded with these Buy Now Pay Later services. If I’ve skipped one of your favorites, let me know in the comments!

9 "Buy Now Pay Later" Services Changing the Way We Shop