Underdog BNPL Apps Outrank Klarna in August Shake-Up

Klarna’s IPO last week piqued our interest in buy now, pay later (BNPL) apps, and it turns out to be a good reason. August’s PYMNTS App Provider rankings find movement at the top of the charts among three companies that are decidedly below the radar. Klarna, in fact, didn’t post a positive score for August.

The PYMNTS apps page offers a monthly ranking of smartphone BNPL apps, assessing them based on publicly available information and exclusive app usage data, helping users identify the top performers in the market. The ranking aims to provide precise insights into app performance, aiding stakeholders in making informed decisions. Those decision makers may be surprised at the top movers for August: Deferit, ViaBill and PerPay.

Deferit posted a two-point gain for a total score of 44. Deferit has carved out a niche in the BNPL market by focusing not on retail shopping but on everyday bills. The Australian startup fronts payments for utilities, phone service, insurance and other recurring expenses, then collects from customers in four interest-free installments, charging a monthly subscription fee instead of interest.

That positioning, helping consumers avoid late fees rather than finance discretionary purchases, has drawn more than 500,000 users across Australia and the U.S. and helped it push new features like credit reporting and bill negotiation. The company’s recent momentum comes as regulators scrutinize traditional BNPL lenders, giving Deferit an opening to present itself as a budgeting tool rather than a credit trap.

Also, posting a two-point gain is ViaBill for a total of 45. ViaBill, a Danish BNPL firm, has been carving out space in a crowded market by offering more flexible repayment terms than its rivals and pushing aggressively into physical retail. Unlike providers that cap repayment at six weeks, ViaBill lets shoppers stretch installments as long as two years, funding the model through merchant fees. That approach has helped it expand beyond eCommerce into brick-and-mortar stores in Europe and the U.S., giving merchants a way to boost basket sizes while offering consumers more runway. ViaBill has signaled it is now in consolidation mode and scouting acquisitions, positioning itself as a disciplined operator in a market under growing regulatory and economic scrutiny.

Finally, PerPay added one point for a score of 52. PerPay built a different kind of BNPL by running its own marketplace and tying repayment to a slice of each paycheck, letting customers buy essentials and pay over time with no stated interest or late fees; users connect payroll, get an initial spending limit (often around $1,000), and can opt into “PerPay+” to report payments and build credit.

Lately, the company has added momentum on two fronts: It launched an unsecured PerPay Mastercard issued by Celtic Bank that requires paycheck direct deposit and pays marketplace-only rewards, expanding its product set beyond marketplace installments, and it secured Certified B Corporation status, a credibility boost as regulators and consumers scrutinize BNPL.