Buy-now-pay-later apps: How they work

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Buy-now-pay-later apps: How they work
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Here’s a step-by-step look at the increasingly popular payment services.

If you’ve been in the mall or scrolling through online shopping sites recently, you might have seen brightly colored ads urging you to split your purchase into four payments with buy-now-pay-later companies such as Quadpay, Afterpay, Klarna, Affirm and Sezzle.

Behind the scenes, apps perform a so-called soft credit check and run customer information through their risk algorithms.How you pay for purchases Some apps also charge users a fee to use their platform. Quadpay, for instance, charges a $1 platform fee with every installment payment.

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