Comparing Affirm vs. Afterpay for Your Business

There is no reason to worry about using either Affirm or Afterpay because they are reliable and trustworthy options. Both have strong security measures to protect client information, and they function similarly to revolving credit cards, personal loans, and payday loans, albeit with shorter terms of repayment. So which one to use?

Affirm vs. Afterpay: Which Is Better?

There is no need to debate which of the two Buy Here Pay Later options is superior. Rather, you should think carefully about whether or not BNPL is the best option for you.

Your choice of service as a consumer will be influenced by both the location of the business from which you are making your purchase and the country in which you are located. Not every BNPL works with every store, both offline and online.

You should think about how much you want or need the product or service, as well as your budget and cash flow, before making a purchase using BNPL.

Comparing Affirm vs. Afterpay for Your Business

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Affirm vs. Afterpay: Late Fees

If you have a loan with Affirm, you may expect the company to share information about your account with Experian, including any late payments. Although there are no penalties for paying a loan back late or in arrears through Affirm, doing so could negatively affect your credit rating and your ability to borrow in the future.

By using Afterpay, if you are 10 days late with a payment, a late fee of up to $8 may be applied. Any late fees must be capped at 25% of the total amount.

What’s the Difference Between Affirm and Afterpay in Terms of Your Credit Score?

A soft credit inquiry is performed by Affirm on prospective clients. A credit score won’t be impacted by a light draw. However, Affirm reports certain loan payments could have a negative effect on your credit score if you don’t make your payments on time. You may decrease your chances of securing another loan from Affirm if you make partial or late payments. 0-30% interest rates are charged depending on the product. Before you complete your purchase, you will see the total interest cost.

With Afterpay, making payments won’t influence your credit history. Afterpay does not do credit checks and will not report late payments. If you miss a payment, however, Afterpay will temporarily suspend your account. You can spend up to $1,500 on each purchase with Afterpay, and your total account amount is capped at $2,000.

If you’re a new Afterpay customer, don’t expect to see the maximum limit increased. Afterpay will give you a lower credit limit to begin with, but if you establish yourself to be a reliable buy now pay later customer, they may increase it. Loans and payments made through Afterpay are interest-free.

Alternatives to Affirm and Afterpay

The most common alternatives for BNPL are Klarna and Paypal. However, much like the Affirm vs. Afterpay comparison, you will have to buckle down and do your due diligence to figure out which is the best option for you. Or if you need it at all! The best course of action would be to reach out to the experts at PIRS capital. They will be able to guide you on your new endeavors with financially educated and sound decisions.

How to Use Affirm and Afterpay for Your Business

Use Affirm to do your shopping now and pay later, whether it’s online or in-store. Shops that accept Affirm will display the option to pay with a virtual card, which may be requested through the Affirm app. Automatic payments can also be set up with autopay.

Affirm gives its users the option to make payments over time with terms ranging from 6 weeks to 60 months. Affirm’s biweekly pay-in-4 option, called “Split Pay,” never charges interest. Affirm provides both interest-free and interest-bearing monthly payment plans, with basic interest rates ranging from 10% to 30% APR. With simple interest, the proportion of interest charged remains constant and does not accumulate beyond the initial rate agreed upon by the customer.

With Afterpay, you can buy thousands of different brands online or in-store and pay later with no interest. The in-app tab can be used to create a virtual Afterpay card. Then, comply with the on-screen instructions to add the item to your Apple Wallet or Google Wallet. Use the tap-to-pay feature whenever you’re ready to make a purchase.

No commitment or hard credit checks, apply today!

Pros and Cons Affirm and Afterpay

Let’s look at Afterpay vs. Affirm in terms of their pros and cons.

Pros Cons
  • Offers zero-interest loans
  • No fees
  • Some loans include credit reporting
  • Monthly payment plans may charge interest
  • No option to reschedule payment
  • No phone number for customer service
  • Seamless integration within store
  • Fast, easy approval process
  • Fast, easy approval process
  • Staggered payment plan
  • Good alternative to a credit card
  • Encourages impulse spending
  • Encourages impulse spending
  • You can’t pick when you pay
  • Can affect your ability to apply for loans

Buy Now, Pay Later Responsibly

Let’s have a talk about how to make the most of these offerings.

Don’t miss any deadlines

In particular, on Afterpay, meeting your payment deadlines is crucial. Confirm that timelines are fairly consistent. Affirm bills you on the same day each month. Afterpay’s biweekly payment schedule is simple to include in your monthly budget.

Never take on more debt than you can comfortably repay

You should be able to finance the purchases even with the installment plans offered by Affirm and Afterpay. You can use the limit-finding tools provided by Afterpay and Affirm to make responsible financial decisions. Therefore, you shouldn’t let services like Afterpay and Affirm determine what your limit is. In the end, you should feel more confident about your financial decisions. Do it now, rather than waiting for Afterpay and Affirm to inform you to cease.

Paying bills in advance is always preferable

Early repayment options are available for both Afterpay and Affirm loans. You can show your charitable side by making some extra payments on your loans. This is a fantastic piece of advice for using Affirm since you will most certainly be charged interest on more substantial acquisitions. If you can, pay an extra payment every month or two to reduce your interest rate.

How to Sign Up on Affirm and Afterpay

Signing up is quite simple.


Use the Affirm app, visit, or pick Affirm as a payment option at a participating retailer to sign up for Affirm.

  • Visit the Affirm site, get the app, or select Affirm as your payment method at checkout.
  • The full name, phone number, email address, birth date, and last four digits of your SSN must be entered when prompted.
  • It’s time to join up and pay the bill.


Afterpay has multiple signup options for convenience. In order to speed up the verification process, the service asks for somewhat more information upfront.

  • Visit the Afterpay webpage or use the Afterpay app.
  • Provide your name, address, phone number, email address, date of birth, government-issued photo ID, and the number of a credit, debit, or checking account.
  • Carry out the registration process in full.

Summing Up the Differences Affirm vs. Afterpay

If you’ve skipped to this section, here is what Afterpay and Affirm have to offer at a glance.

Afterpay Afirm
Amount Due at Purchase  25% As low as 0%
Repayment Terms  Pay 25% every 2 weeks Dependant on loan type
Interest  0% 0% / 10% / 30%
Credit Check Required  Soft credit check Dependant on loan type
Late Fees  At least $10 and up to 25% of the purchase price or $68 (whichever is less) None
Popular Brands Available  Pandora, Bed Bath & Beyond, Old Navy, UGG, Forever 21 Peloton, Target, Pottery Barn,
Other Financing Products  None Virtual card numbers, Affirm Savings Account, Affirm Debit+ card

Now you decide what works best for your business and reach out to PIRS Capital for further guidance and capital assistance. You don’t have to empty your savings to start fresh!

Written by: Mitchell L.

I work with companies that sell products on platforms such as Amazon, Shopify, Walmart, Ebay, Etsy, etc. I understand that every business is unique and thats why I form genuine relationships with owners so I can help them reach their goals and find success through our working capital solutions.

Affirm vs. Afterpay FAQ

To sign up for Affirm, visit their website or download the app from the App Store or Google Play. Provide your personal information, including your name, email address, and phone number. You’ll also need to link a valid bank account or credit/debit card to your Affirm account. Once your account is set up, you can start using Affirm to finance eligible purchases. When you check out with a participating retailer, select Affirm as your payment option and follow the prompts to set up a payment plan. Keep in mind that approval for financing with Affirm is subject to credit check and eligibility requirements.

To sign up for Afterpay, visit their website or download the app from the App Store or Google Play. Create an account by providing your personal information, including your name, email address, and phone number. After completing the sign-up process, you can start using Afterpay for eligible purchases. Just select Afterpay as your payment option at checkout and follow the prompts to set up a payment plan. Keep in mind that you’ll need to be at least 18 years old and have a valid debit or credit card to use Afterpay.

Using Buy Now Pay Later responsibly involves understanding the terms and fees, making payments on time, budgeting appropriately, and avoiding overextending yourself financially. It’s important to only use this option for purchases you can afford and to have a plan to pay off the balance before the due date. Additionally, you should monitor your credit score and avoid opening too many Buy Now Pay Later accounts.

Eligibility Requirements

  • Owner or majority owner must be a US citizen
  • Must have US bank accounts
  • Have to be selling for at least 1 year
  • Minimum sales per month has to be $15000 USD