Difference Between Sezzle and Affirm

There are several financial organization that provides the finance at the point of sale, digital credit cards, and perhaps even savings accounts when buying online. Two examples of a platform like this are Sezzle and Affirm. Both of them are amongst the best-known online finance platforms currently.

Sezzle vs Affirm

The main difference between Sezzle and Affirm is that Affirm has a much larger list of sites than Sezzle, and there are no hidden costs or hassles with Affirm. One will have to supply a little more data upfront, but Affirm provides additional payment choices that can help users arrange payments more easily.

Sezzle is a transaction mechanism that allows customers to “Buy Now, Pay Later” using easy, interest-free installment plans, increasing sales and order quantities. One divides the total price of the item into fewer, more affordable payments. Usually, four equivalent payments are spaced 2 weeks apart.

Affirm is a digital banking provider that sells loans at the point of sale, virtual lines of credit, and even bank deposits to customers who purchase digitally. Affirm is most well-known for its digital purchase point-of-sale financing. People may notice the Affirm payment option when they check out at a partnered online merchant. Affirm has lately opened a small number of brick-and-mortar locations as well.

Comparison Table Between Sezzle and Affirm

What is Sezzle?

Sezzle is an electronic payment system that enables customers to buy now and pay later – interest-free! When customers purchase with Sezzle, their proprietary authorization system looks into the account to see what kind of personal loan they can provide. For most situations, customers pay 25% of the real line value upfront (also known as your “downpayment” or “first installment”), with the rest spread out over three installments, each due 2 weeks apart. In reality, there are no fees as long as you pay your installments on time!

Users of subscribing online retailers can split payments for their goods into four installments using the Sezzle e-commerce payments system, which was established in 2017. The first installment is required at the time of purchasing, with the remaining three installments falling due at frequent intervals within the next six weeks. 

Sezzle’s screening system examines every purchase separately, taking into consideration several aspects such as a soft credit score verification, the consumer’s order history at Sezzle, as well as the purchase price amount, rather than focusing simply on a consumer’s FICO score for credit risk rating.

What is Affirm?

Affirm Holdings, Inc., or Affirm, is a publicly listed financial services business based in San Francisco, California. The organization, which was launched in 2012, is a financial institution that provides consumers with installment loans that they can use to finance purchases at the point of sale. 

A one-time-use digital card, similar to a digital credit card, is also available from the firm. It can be loaded with the amount of the approved loan and used with nearly any online merchant that takes credit cards. Users have 24 hours from the time Affirm issues the card to utilize it. By connecting the virtual card to an Apple or Google account, users can use it in physical locations — the business must allow Apple or Google payment. Affirm’s FDIC-insured savings account that provides a 0.65 percent yearly percent yield (APY) as of May 2021 is distinct from its lending choices. There seem to be no fees or limitations for a minimum balance.

Although some associate stores offer 0% APR Affirm financing options lasting up to 2 years, Affirm normally charges interest charges. While Affirm functions similarly to a credit card, it will not charge compound interest, which means it does not charge interest on the already accrued interest. Rather, only the original sum is charged with interest.

There are no other fees to be aware of. There is Sezzkeno late fee if customers complete a late payment. Affirm doesn’t charge any fees for account creation, initiation, or additional fees.

Main Differences Between Sezzle and Affirm

Conclusion

Affirm Holdings, Inc., or Affirm, is a San Francisco-based wholly-owned financial services provider. The financial firm, which was founded in 2012, gives customers installment loans that they’re using to fund purchases made at the point of sale. Sezzle is an interest-free online payment service that allows users to buy now and pay later. When consumers purchase Sezzle, their exclusive authorization system examines the account to determine what type of personal loan they can offer.

References

ncG1vNJzZmiZo6Cur8XDop2fnaKau6SxjZympmeZmXyltcWfnKudnpiybq7Era6enZ5iwKbG2aWcZpmemXqissWiqaZn