Both Affirm and PayPal offer valuable financing options, but they cater to different needs. Affirm is a good choice for consumers seeking installment loans for purchases, while PayPal provides a broader suite of financial services, including business loans and international transactions. PayPal also has the edge in customer support and rewards programs. The best choice depends on individual financial needs and preferences.
| Attribute | Affirm | PayPal |
|---|---|---|
| Interest rates and fees | APRs range from 0% to 36%. No late, service, prepayment, or hidden fees. Merchants are charged a transaction processing fee of around 6% + $0.30 per purchase. | PayPal does not charge late fees or early repayment fees. PayPal Working Capital loans have no origination fees, and you only pay a single fixed fee. PayPal Pay in 4 has no sign-up fee and is interest-free. |
| Credit score impact | Applying doesn't impact your credit score. Loan and payments *may* affect your credit score. Missed payments and payments over 30 days late may be reported to Experian. Affirm may check your credit history with a soft inquiry. | Using PayPal to pay or send money typically won't affect your credit score. Applying for PayPal Credit can impact your credit score due to a hard credit check. Managing a PayPal Credit account responsibly could improve your credit score. Missed payments on PayPal's Pay in 3 and PayPal Credit can negatively impact your credit score. |
| Loan amounts available | Loan amounts range from $50 to $20,000. Some lenders offer up to $50,000. Approval depends on factors like income, credit history, and existing debts. | PayPal Working Capital: $1,000 to $300,000 (up to $200,000 for first-time borrowers, up to $300,000 for repeat borrowers). PayPal Business Loans: $5,000 to $100,000 for first-time borrowers, up to $150,000 for repeat borrowers. |
| Repayment flexibility | You can pay off your Affirm loan early without prepayment penalties or fees. Making extra payments can save on interest. | PayPal Working Capital: Repayments are a percentage of daily PayPal sales, with a minimum payment of 5% or 10% of the loan amount required every 90 days. No set repayment term. PayPal Business Loans: Fixed weekly repayments automatically withdrawn from the business bank account. Loan terms range from 13 to 52 weeks. PayPal Pay in 4: Split purchases into four interest-free payments. |
| Merchant acceptance | Affirm is accepted at many major retailers and online stores. | Accepted at numerous major retailers and online stores, including Walmart, Target, Macy's, Kohl's, Best Buy, Nike, Adidas, H&M, and more. |
| User interface and experience | Affirm's platform is designed to be user-friendly. The mobile app allows you to check purchasing power, get exclusive deals (like as low as 0% APR), and make payments. | Interactive and easy-to-use interface. The mobile app is available for Android and iPhone users, featuring a personalized dashboard, a wallet tab, and a payments hub. |
| Customer support quality | Not explicitly detailed in the search results. | Offers 24/7 fraud monitoring and instant account notifications. |
| Data security measures | Affirm uses industry-standard AES 256 encryption and tokenization. They conduct security audits, employ secure transmission protocols, and have incident response plans. | Uses sophisticated encryption techniques, such as Secure Socket Layer (SSL) technology, and advanced fraud protection systems. Additional security features include passkeys, key pinning, and data encryption. |
| Integration with other financial tools | Not explicitly detailed in the search results. | Google Pay integrates with other Google services. |
| Mobile app availability and features | The Affirm app is available for both iOS and Android. You can pay over time and get exclusive deals. | Available for Android and iPhone users. Allows users to check their balance, transfer funds, send/receive money, shop online, pay bills, and manage their account. Includes security features like fingerprint login and two-factor authentication. |
| Rewards programs or cashback offers | Not explicitly detailed in the search results. | Offers cash back offers. Users can earn 1%, 2%, or 5% cash back and track/redeem it in the app. |
| Global accessibility and currency support | Affirm is primarily available in the U.S. and Canada. | Manages online money transfers, checks, and money orders, and transactions can be made in any global currency. Makes it easy to send money internationally. |