Buy now, pay later is everywhere, but that doesn't mean Affirm is the right fit for every business. Approval rates, fraud rules, platform bias, and dispute policies can turn a simple integration into a long-term risk. If you've been burned by low conversion rates or chargeback black holes, this guide compares real Affirm alternatives based on how they actually treat merchants, not just shoppers.
Afterpay: Cleaner UX, But Not Always Friendly to High-Risk Merchants
Afterpay is a dominant BNPL option with wide consumer trust, especially in fashion and lifestyle retail. Its plug-and-play integrations work well on platforms like Shopify and WooCommerce. The user experience is polished, and shoppers usually get approved quickly.
But here's the rub for merchants: Afterpay tends to favor "safe" verticals. If your business is in supplements, ticketing, CBD, or even digital goods, you may struggle with account approval or find yourself flagged after onboarding. Payouts are typically fast, but the dispute process offers little transparency to sellers. There's no simple way to push back on a bad claim.
Best for: Fashion, accessories, and low-risk verticals
Merchant pain point: Unclear approval thresholds and no control during disputes
Klarna: Built-in Traffic, But Watch Out for Payment Delays
Klarna brings one major thing most BNPL providers don't: a built-in marketing channel. Its app and marketplace can drive real shopper traffic. Merchants can even promote products through Klarna's native placement features.
On the flip side, Klarna's platform runs deep. They often batch payout schedules, take more control over the checkout experience, and add friction for custom setups. Some merchants report holding periods or delays tied to performance metrics or return volume.
Dispute management is minimal, and Klarna usually sides with the buyer. You're not handling the chargebacks yourself, but you're also not given much say.
Best for: High-volume merchants who want extra exposure
Merchant pain point: Limited visibility and delays in fund settlement
Sezzle: Flexible for Small Businesses, But Weak on Dispute Support
Sezzle markets itself as a merchant-friendly BNPL alternative for smaller or mid-sized businesses. The onboarding process is fast, integration is simple, and approval odds are generally higher than with Affirm.
Where Sezzle stumbles is in its handling of disputes, chargebacks, and fraud claims, which are typically not managed with much involvement from the merchant side. If a transaction is flagged, you may not know until funds are withheld or clawed back. For industries with higher fraud risk, that's a serious liability.
Best for: SMBs with standard checkout flows
Merchant pain point: Weak protection when fraud or disputes arise
Shop Pay Installments: Seamless for Shopify, But Lacks Flexibility
Shop Pay Installments (via Affirm under the hood) is tightly baked into the Shopify ecosystem. That makes it easy for Shopify users to enable BNPL in just a few clicks, with instant syncing of orders, shipping, and customer details.
But because it runs on Affirm's rails, many of the same merchant complaints still apply: uneven approval rates, rigid policies, and nearly zero leverage when fighting a bad dispute. It's also not available if you're not on Shopify, and Shopify Payments must be enabled to use it.
Best for: Shopify merchants who want easy setup
Merchant pain point: Limited control over risk settings and dispute outcomes
Splitit: Uses Shopper's Existing Credit Line, Less Risky for Merchants
Splitit stands out by using the customer's existing credit card instead of creating a new line of installment credit. That removes a lot of the regulatory friction and fraud exposure.
Because of this model, Splitit has very low default risk and is often safer from a chargeback standpoint. There's no new loan or credit product to dispute, just authorization holds. It also gives the merchant full control over capture timing and installment flow.
The downside? Fewer shoppers are familiar with it, and the approval process depends on the shopper's available credit. Also, integrations aren't as widespread as Klarna or Afterpay.
Best for: Merchants focused on risk mitigation and high AOV
Merchant pain point: Lower brand awareness among shoppers
Sunbit: High Approvals for Services, But Heavily Industry-Specific
Sunbit focuses on service-based BNPL, such as dental, auto repair, or optical. Their approval algorithm leans toward inclusivity, and many shoppers who get denied by Affirm will get approved here.
Sunbit's model includes merchant training, on-site devices, and multi-step onboarding. It's not built for online retail, so unless you're in one of their supported categories, it may not be a fit. But where it is supported, it can outperform traditional BNPL in approval rates and collections.
Best for: In-person service businesses
Merchant pain point: Not compatible with standard ecommerce
Final Thoughts: Choose a BNPL That Works for You, Not Just Your Customers
The BNPL market is crowded with options that look similar on the surface. But from the merchant side, the differences matter. Some platforms delay payouts. Some ignore your fraud evidence. Some lock you into ecosystems with no way out.
Affirm alternatives like Splitit and Sezzle can reduce chargeback risk, but you trade off shopper familiarity. Klarna and Afterpay may win conversions, butthey offer little when disputes hit.
The right choice depends on your business model, risk tolerance, and how much visibility you need into the payment flow. Test before you commit, and read every dispute clause.
FAQ: Affirm Alternatives
What are the best Affirm alternatives for high-risk merchants?
Splitit and Sezzle are often better options for high-risk merchants due to their flexible underwriting and lower fraud exposure. Platforms like Afterpay or Klarna may decline applications based on industry or impose payout holds.
Do Affirm alternatives handle chargebacks better?
Not always. Most BNPL platforms manage disputes in-house and don't involve the merchant much. Splitit is one of the few options that gives sellers more control because it uses existing credit card authorizations instead of issuing new loans.
Can I use Shop Pay Installments without Affirm?
No. Shop Pay Installments is powered by Affirm. If you want to avoid Affirm policies or approval filters, you'll need to switch to a different provider entirely.
Which BNPL provider has the highest approval rates?
Sunbit often has the highest approval odds, especially in service verticals. For ecommerce, Klarna and Sezzle tend to approve more customers than Affirm, but it depends on the buyer's credit profile and industry.
Do any BNPL tools let merchants fight back against disputes?
Most BNPL tools don't let merchants intervene once a chargeback is filed. They handle disputes internally and often side with the shopper. That's why having an external chargeback protection tool is critical if you rely on BNPL for volume.
Chargeblast Helps Cut BNPL Dispute Losses Before They Start
If you're adding a BNPL provider or switching from Affirm, don't let weak dispute tools drain your revenue. Chargeblast automates chargeback prevention and dispute responses, even for BNPL platforms where you don't get much say.
We track patterns, sync your order data, and flag high-risk transactions before they become chargebacks. You get fewer losses, faster recoveries, and better visibility.
Make BNPL work for your business, not against it.
Talk to us about safer, smarter dispute protection today.
