Sezzle vs Afterpay: Difference and Comparison

Buy Now and Pay Later is an incredible plan for shoppers. Especially if you are an online shopper, this feature shall be of great help. And if the repayment option does not have interest charged, then nothing like it. 

There are many Fintech companies available around the globe that offers such services. Two of the most popular companies, Sezzle and Afterpay, have a similar approach towards this feature. Though, at the outset, the services look similar, there are a few clinical differences between the two.

Key Takeaways

1. Sezzle allows users to split their purchase into four interest-free installments, while Afterpay allows users to split their purchase into four interest-free installments or pay later.
2. Sezzle requires a 25% down payment, while Afterpay does not require any upfront payment.
3. Sezzle is available in the US and Canada, while Afterpay is available in several countries worldwide, including the US, UK, and Australia.

Sezzle vs Afterpay

The difference between Sezzle and Afterpay is the payment duration. Sezzle offers customers 2 weeks as the time frame for every instalment, while Afterpay gives a week for one instalment to be paid. The 4 instalments in Sezzle are paid in 6 weeks as the 1st instalment amount is paid as a downpayment, while Afterpay clears this from the consumer within 4 weeks.

Sezzle is an online payment platform that offers customers to shop now and pay within 6 weeks of purchase. The good news is there is no interest charged for the purchase or the payment. As a shopper, you can use Sezzle as the shopping platform and pay through that. The repayment plan is divided into 6 weeks while you make the 1st instalment as you purchase the product.

Afterpay is again a lender who offers the same as Sezzle, but the payment has to be made in 4 weeks. It is a sort of budgeting tool as it also limits the customer from spending higher. It does not offer 100% approvals for all purchases. It has its criteria to approve the purchase. The minimum order value must be $35.

Comparison Table

Parameters of Comparison	Sezzle	Afterpay
Countries of Operation	Canada, Bahamas Reunion and Moldova	Afterpay is available in 131 and more countries
Website Coverage	Has limited website coverage for online purchase	Wide range of coverage listing from clothes to gardening
Instalment period	6 weeks	4 weeks
Online Customer Service	Excellent Online Customer Service	No Such service at all
Reschedule Installment date	It is possible with a $5 fee	There is no such provision

What is Sezzle?

Sezzle is an online payment platform that allows you to shop from designated websites. You can purchase the product now and pay for it in regular instalments. The first payment shall be the 1st instalment, and the next 3 instalments are spaced within 6 weeks period. The best part is you don’t have to pay any interest as you make this transaction.

The only factor you must be concerned about is the repayment at the right time. Sezzle pays the merchant in full and expects you as a customer to pay Sezzle in equal instalments. If you have defaulted on the payment, a $10 late fee is charged. However, Sezzle has a few corrective actions to prevent you from paying the late fee or making the late payment.

Sezzle has the protocol of giving you constant reminders about your repayment. Not only that, if you feel that you cannot make the payment on time on a particular date, you can reschedule the date for a further period. Of course, you shall be charged $5 for this task.

Sezzle is operating in a few countries compared to other giants. But the customer service is impeccable. Also, the e-commerce website coverage is limited. You can start using their services if you have the below-mentioned criteria met

1. 18 years of age or more
2. You must have a US or a Canadian phone number that shall receive phone calls and texts.
3. An email address that is currently working
4. A Bank account/ Debit Card/ Credit Card

What is Afterpay?

Afterpay is a Fintech company offering a buy now, pay later feature for the products you shop on their platform. With a wide connection of websites and countries in its platform, as a consumer, you can buy anything and everything now and pay later in 4 instalments. You are given a time of one week for one instalment.

As a consumer, the threshold to purchase is $35. You are required to key in credit or debit card details as you sign up. That means you shall be charged a late fee and have the instalment amount deducted if you default on payment.

With over 131 countries it operates, the product list range from clothes to gardening accessories. Afterpay has non-credit-based approval. At the same time, the approval criteria are vast. The backend check shall include how many transactions you have made with Afterpay, the purchase value and your credit card limit to pay at least the first instalment.

Afterpay does not guarantee 100% approval for all orders. It might reject a few. The user-friendly website has no online customer support. Afterpay’s refund execution is pretty late. But the best part is you can purchase products even if your cash flow is less as well.

Main Differences Between Sezzle and Afterpay

1. The main difference between Sezzle and Afterpay is the instalment period. Sezzle offers 2 weeks for one instalment while Afterpay offers 1 week as the time for paying one.
2. There is no minimum buying threshold for Sezzle, while Afterpay has set $35 as the minimum purchase value.
3. Sezzle is operating in very limited countries, counting up to 4, but Afterpay works across the world and serves more than 131 countries worldwide.
4. The website coverage for Sezzle is very limited, while that of Afterpay is unlimited.
5. The instalment date can be rescheduled after purchase, but no such feature is available with Afterpay.

References

1. https://onlinelibrary.wiley.com/doi/abs/10.1002/bdm.564
2. https://www.jstor.org/stable/976469?seq=1