Difference Between Sezzle and Affirm (With Table)

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

1. Sezzle is headquartered in Minneapolis, Minnesota, United States, whereas Affirm is an organization based in San Francisco, CA, United States.
2. Sezzle only supports SaaS, unlike its peers. On the other hand, Affirm supports all the platforms, excluding windows and Mac.
3. The target audience of Sezzle is eCommerce businesses and online merchants. For Affirm, online merchants who want to offer clients the option of paying over time are the target audience.
4. Sezzle comes with a free trial of a certain duration in hand for the customers. On the other hand, Affirm offers no free trial offers to the customers, and they will have to buy the premium version to use it.
5. The training for Sezzle is done either in person or with the documentation process, whereas Affirm Training is done through documentation and webinars.

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

1. https://www.mdpi.com/2071-1050/13/4/1992
2. https://link.springer.com/chapter/10.1007/978-3-662-44958-5_23