Alt-Credit Apps Ride The ‘BNPL’ Wave

Peer-to-peer (P2P) instant money apps and real-time payments (RTP) are the most exciting developments in getting paid in decades, and alternative credit is having the same effect on borrowing.

This week we look at the rising phenomenon of alternative credit which revived the dormant “layaway” concept, called it “buy now, pay later,” then did it one better by letting customers have the item up front instead of after the final payment.

Back in the day of layaway 1.0 you made all the payments first, and then got your item.

The PYMNTS Alternative Credit App Provider Ranking tells the tale of the current rulers of alt-credit and those brands in hot pursuit of their position in the “buy now, pay later” horse race.

The Top 5

Leading the pack at No. 1 in this inaugural Alternative Credit Provider Ranking is Swedish sensation Klarna, whose perfect score reflects the company’s standing with consumers and businesses. Close on Klarna’s heels at No. 2 is FuturePay, whose “tab” concept was among the first buy now, pay later (BNPL) programs to catch on.

In the No. 3 spot this month is a newsmaker, Afterpay, the Australian player whose BNPL service took off like a rocket, successfully going public and popularizing point-of-sale (POS) lending. And alt-lender Affirm takes the No. 4 spot on the March 2020 PYMNTS Alternative Credit Provider Ranking with its quick POS lending decisions, followed at No. 5 by QuadPay and its simple terms of four monthly interest-free payments.