Sezzle vs Afterpay

Sezzle and Afterpay Has One Major Difference

Both Sezzle and Afterpay are Buy Now Pay Later apps that allow you to make purchases and pay over time (most often at 0% interest rate). Both Sezzle and Afterpay offer the standard Pay-in-4 payment plan as well as a monthly payment plan.

The key difference between Afterpay and Sezzle is that Sezzle reports to the three major credit bureaus (TransUnion, Experian and Equifax) whereas Afterpay does not. For those who would like to build your credit score with a BNPL app, Sezzle would be an ideal choice compared to Afterpay.

We will now compare both Afterpay and Sezzle and go into the details of both apps.

What is Sezzle?

Sezzle was founded in 2016 and is one of the newer Buy Now Pay Later platforms. Like most other

Pay-in-4 and Pay-in-2 Payment Plan

Buy Now Pay Later platform, Sezzle offers the standard Pay-in-4 payment plan at 0% interest rate. In the Pay-in-4 plan, the payment installments are split in 4 equal payments to be paid 2 weeks apart.

Sezzle also offers a Pay-in-2 payment plan for products over $400.

Monthly Payment Plan

Like other BNPL apps, Sezzle also offers a monthly pay option that is available for some of their retail partners. The monthly plan allows you to pay for your purchase over time from 3-48 months and with interest rates ranging from 5.99% to 34.99%. Sezzle's lending partners are Bread and Opportun and may extend a credit line of up to $15,000 for the monthly payment option.

Sezzle Premium

While Sezzle has partnerships with many retailers (both in-store and online), you have to subscribe to Sezzle Premium to access their larger well-known branded partners. Though Sezzle does not reveal the cost to subscribe to the Premium membership, their customers have revealed that it cost $9/month.

Sezzle Anywhere Virtual Card

Sezzle also has a virtual card where you can use it anywhere Visa is accepted. The Sezzle Virtual Card is called Sezzle Anywhere and you would have to add the card to your digital wallet. Sezzle will charge a monthly fee for their virtual and they claim it might vary from person to person. But most people have reported that they will charge $17.99 a month and include the benefits of Sezzle Premium as well.

Sezzle Up - Reports to Credit Bureaus

Sezzle also reports your payment to all three major credit bureaus (TransUnion, Experian and Equifax). You have to enroll in Sezzle Up, which is a free program to enable tri-bureau reporting.

What is Afterpay?

Afterpay was started in 2014 and was one of the earlier Buy Now Pay Later apps. Afterpay offers both the standard Pay-in-4 and monthly payment options. Afterpay claims that they will start you off with a $600 and the maximum credit limit is $3,000. Having said that, many customers have reported lower starting credit limits.

Afterpay Pay-in-4 options

Afterpay's Pay-in-4 option is pretty much similar to what every BNPL is doing. You will pay your purchase in 4 equal installments spaced out between 2 weeks with the first payment made upon checkout. You will not be charged any interest and so the APR is 0%.

Afterpay Monthly Payment Option

Afterpay's monthly payment option allows you to pay for a product in monthly installments in either 6 or 12 months. The interest rate ranges between 6.99% and 35.99%. Afterpay partners with First Electronic Bank to offer the monthly payment option.

Afterpay Card

Afterpay offers a card that can be uploaded into your digital wallet. This allows you to use Afterpay directly from your digital wallet in-store with retailers who accept Afterpay.

Similarities

• Pay-in-4 Options - Both Sezzle and Afterpay offer Pay-in-4 Options with identical terms.


• Monthly Payment Options - Both Sezzle and Afterpay also have monthly payment options though they have different terms and conditions.


• Virtual Cards - Both Afterpay and Sezzle have virtual cards. However, as we will see below, they are quite different.

Differences

Afterpay and Sezzle are different in the following ways:

Sezzle reports to credit bureaus whereas Afterpay does not

Sezzle reports to the three major credit bureaus (Experian, Equifax and TransUnion) when you enroll in Sezzle Up, which is a free program. In contrast, Afterpay does not report to any credit bureaus (which is the norm for most BNPL apps).

Sezzle has better monthly pay option than Afterpay

Sezzle's monthly pay option has both a longer term as well as lower rates. Sezzle's monthly payment option allows you to pay for larger purchases for up to 3-48 months. The Interest rate may range from 5.99% to 34.99%. You may get credit limits of up to $15,000.

Afterpay's monthly payment option allows you to pay for your purchases in either 6 or 12 months. Interest rate ranges from 6.99% to 35.99%. Afterpay's maximum credit limit is $3,000.

As you can see, Sezzle has a much longer term maturity for their monthly payment plan, the potential to still get 0% financing and also a much larger credit limit.

Sezzle has Pay-in-2 Option

Aside from the standard Pay-in-4 and monthly payment option, Sezzle also has a Pay-in-2 option which Afterpay does not. The Pay-in-2 option is available for purchases above $500.

Their Virtual Cards are different

Sezzle's virtual card can be used anywhere Visa is accepted. But there is a monthly fee and many have reported that they are paying $17.99 a month.

In contrast, Afterpay's virtual card simply means you can add Afterpay to your digital wallet and use it in-store with retailers that accept Afterpay. Afterpay does not charge any fee for their Afterpay Card.

Which is better?

If we simply look at the features of both Sezzle and Afterpay, then I would have to say that Sezzle is better than in terms of features. Firstly, Sezzle will report your payments to the three major credit bureaus while Afterpay does not. Sezzle also has the Pay-in-2 payment option which Afterpay does not have. Sezzle also has longer terms and potentially lower rates for their monthly payment option compared to Afterpay.

You can also use Sezzle on popular sites like amazon.com and fingerhut.com whereas Afterpay does not.

If you are looking for a BNPL app that reports to all three major credit bureaus, then Sezzle is the easy choice.

However, there are other factors that may lead you to choose Afterpay over Sezzle. For example, some find that Afterpay is available in more stores and online stores whereas with Sezzle, you need to subscribe to Sezzle Premium to get access to more brands. And Sezzle Premium has a monthly subscription fee of $9/month.

While you can use Sezzle's virtual in any store that accepts Visa, they do charge a monthly subscription fee. But the Afterpay Card is simply one that can be loaded into your digital wallet. I would not get too excited over both their virtual cards.

To sum up, I would give the edge to Sezzle simply because they report to all three major credit bureaus and also because they have more and better payment options.