Before you add another payment option to your checkout, it helps to understand what’s behind the names. Afterpay and Clearpay are often used interchangeably, but they aren’t quite the same. If you're managing payments for a growing business in North America, knowing how they differ, where each fits, and what they mean for your customers and cash flow could influence your next move.
BNPL is growing. So what does that mean for your payment strategy?
What BNPL actually is (and isn’t)
Buy now, pay later (BNPL) services let customers spread the cost of purchases over multiple payments. The idea isn’t new, but the execution is: instalments are typically interest-free and scheduled automatically, making the experience feel more manageable than traditional credit cards.
Why more shoppers want BNPL at checkout
People aren’t just looking to defer payments. They want to control how and when they pay. BNPL aligns with this demand, especially among younger shoppers. For them, having options at checkout isn’t just a perk.
BNPL isn’t replacing credit cards, but it’s challenging their dominance. Credit cards carry revolving debt and interest; BNPL offers structure and transparency. Each has its place, but they’re used and viewed very differently.
Afterpay vs Clearpay: What’s the difference?
Afterpay and Clearpay are the same service operating under different names. Afterpay is used in North America, Australia, and New Zealand. Clearpay is its name across the UK and much of Europe.
Afterpay handles transactions in USD, AUD, and NZD. Clearpay supports GBP and EUR. This split shapes how you accept payments and which shoppers you can reach. Below is a side-by-side comparison of their key differences in terms of currency support and reach.
|
Feature |
Clearpay |
Afterpay |
|
Region |
UK, EU |
US, AU, NZ |
|
Currency |
GBP, EUR |
USD, AUD, NZD |
|
Payment Plan |
4 payments over 6 weeks |
4 payments over 6 weeks |
|
Interest Rate |
0% |
0% |
|
Late Fees |
Yes |
Yes |
|
Payment Method |
Debit, credit cards |
Debit, credit cards |
Is Afterpay the same as Clearpay?
Functionally, yes. Whether your customer uses the Afterpay app or the Clearpay app, the payment schedule, integration experience, and merchant funding process remain consistent.
Which is best in the US market?
If your primary customers are in North America, Afterpay is the relevant choice. For cross-border commerce or European operations, Clearpay is more suitable. Either way, both brands offer access to app-based users who are ready to buy now and pay later.
Breaking down the payment experience
How Afterpay and Clearpay payments work
Once a shopper is approved, they can pay in four instalments spread over six weeks. The first instalment is taken at purchase, with the remaining three scheduled fortnightly. No interest applies when payments are made on time.
Payment schedules, eligibility, and limits
Not everyone is eligible to apply. Approval is based on age, region, and repayment history. New users start with modest spending limits, which may grow over time with consistent repayment.
What happens if a shopper misses a payment?
Late fees apply, but interest charges do not. Missed payments can temporarily suspend account access or impact future eligibility. The apps send reminders, and rescheduling is possible within limits.
Payment methods and options available
Supported card types, wallets, and apps
Afterpay and Clearpay support debit cards, most credit cards, and, in some cases, digital wallets. Shoppers manage everything from the app, where they can track purchases, update payment methods, and review their payment plans.
Refunds, rescheduling, and how the platform manages risk
Refunds are initiated through the merchant, then reflected in the shopper’s payment schedule. The platforms absorb risk and fraud monitoring, meaning the merchant gets paid upfront regardless of instalment performance.
Why this matters to your checkout experience
Offering BNPL at checkout can reduce cart abandonment and encourage higher-value purchases. It's not just about adding a payment method; it's about meeting shopper expectations at a critical decision point.
How safe is Afterpay? A look at fraud and compliance
Data protection, PCI DSS, and encryption standards
Afterpay and Clearpay meet global compliance standards like PCI DSS and use encryption to safeguard data. Fraud detection mechanisms and risk scores help protect both merchant and buyer.
Consumer rights and the role of the Consumer Financial Protection Bureau
The Consumer Financial Protection Bureau is taking a closer look at BNPL services. While the landscape is still evolving, transparency in terms and clear dispute processes are built into both platforms.
Why offer Afterpay or Clearpay as a merchant?
Increase in cart size, conversion, and repeat purchase
Giving shoppers the option to split payments can lead to higher average order values and improved conversion rates. In particular, merchants often see upticks in repeat purchases from app-savvy users.
Payment flexibility and the appeal to Gen Z and millennials
These generations are less likely to hold traditional credit cards and more likely to use apps for money management. BNPL fits their lifestyle—structured, mobile-first, and free of long-term commitments.
Merchant funding, settlement flow, and risk protection
Merchants are paid in full, upfront. The platform handles collections and assumes the financing risk. This improves cash flow without adding operational burden or exposure to defaults.
Integration questions you should be asking
API availability, documentation, and developer tools
Both Afterpay and Clearpay offer APIs with robust developer support. Integration is straightforward, and updates are regularly rolled out to support platform improvements.
How it fits into existing global payment and checkout flows
BNPL is added as a payment method during checkout. From the shopper’s perspective, it’s a familiar flow: select Afterpay or Clearpay, approve the payment schedule, and return to your site for confirmation.
Cross-border integration: currency, refund, and settlement logistics
Currency support and settlement timelines vary by region. Afterpay handles USD and AUD; Clearpay supports GBP and EUR. Refund logic is platform-driven but integrates back into the merchant’s systems.
What’s next for BNPL in North America?
Consumer usage trends and expectations
Usage continues to rise, especially for fashion, home goods, and electronics. Shoppers value transparency and predictability in how they pay and are actively choosing brands that reflect those preferences.
Monthly active user growth and app engagement
The Afterpay app sees millions of active users each month, with growing engagement tied to exclusive offers and flexible scheduling. This app-centric behaviour reinforces customer loyalty.
Regulatory spotlight: what’s changing and what to watch
Expect more attention on fees, disclosures, and credit reporting practices. For merchants, this means staying aligned with evolving terms and conditions without needing to manage compliance directly.
Aligning your BNPL approach with your payment strategy
BNPL is more than a trend, but it’s a shift in how customers want to pay. Choosing the right solution, whether it’s Afterpay or Clearpay, means thinking about where your customers are, what currencies they use, and how you want to manage risk and reward. It’s a strategic decision, and one worth revisiting as shopper behaviour evolves.
