Forget Traditional 'Buy Now, Pay Later': This Startup Says There's a Better Way to Build Credit

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Paying for everyday items like furniture, electronics, or home essentials often means turning to buy now, pay later services or high-interest credit cards. But those options can come with hidden costs — and they don't always help people build better credit.

That's where Perpay comes in. This Philadelphia-based company is taking a different approach, helping working Americans afford what they need while improving their credit along the way.

Perpay's Approach: Affordable Payments That Build Credit

Perpay offers two main ways for users to manage purchases and build credit.

Their initial product is an online marketplace that allows customers to shop for everyday essentials and pay over time with small, automatic payments tied to their paychecks.

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"Our user base, which is about a third or 40% of the American population – they are living paycheck to paycheck and $500 is a financial crisis," Perpay CEO Chris DiMarco told Benzinga.

So, Perpay created a solution outside of traditional BNPL or rent-to-own options where they can pay directly from their paychecks. And unlike many BNPL services, Perpay does not charge interest or upfront fees. The company says this structure is designed to help people avoid spiraling debt while still building access to better credit.

These payments are entirely customer-initiated — users decide when and how much to pay — and Perpay never directly accesses anyone's payroll. By reporting these payments to the credit bureaus, Perpay helps users build or repair their credit.

In addition to the marketplace, Perpay has a credit card designed for people with lower credit scores. DiMarco says the card encourages responsible habits with consistent, automatic payments, and users typically pay down about 40% of their balances each month — far higher than the typical credit card average.

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Why the Current Credit System Falls Short

Traditional credit cards and BNPL services often make it easy to borrow but harder to move forward financially. They don't always report payments to credit bureaus, which means even responsible borrowers may see little to no credit improvement.

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DiMarco says part of the problem is how the credit system itself is designed.

"It's not able to be innovative," he told Benzinga, adding that the way banks price and fund credit products leaves little room for new models that reward responsible behavior. In other words, people can make consistent, on-time payments but still not see those good habits reflected in their credit scores.

A Certified B Corporation With a Mission

Perpay said it recently became the only credit-building Certified B Corporation in the U.S. This distinction is given to businesses that meet high standards for social and financial responsibility.

DiMarco told Benzinga the company's focus has always been on helping everyday workers, not just those with perfect credit scores.

"There are working middle class, that's what they are," DiMarco said. "It's those who work for Marriott, Walmart, Amazon. They work for the United States Postal Service. They're America's working class...That's who we're helping."

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Becoming a Certified B Corporation is a major step for Perpay. The certification is awarded by nonprofit B Lab and measures a company's impact on workers, customers, and communities. To qualify, businesses must score at least 80 points on a detailed assessment of their social and environmental practices; Perpay's score was well above that threshold.

For DiMarco, the certification is proof that businesses can grow while still doing good.

"We try to strive for great, which means every additional customer that we add, we are increasing our impact at no sacrifice to the customer," DiMarco said. "Our customer charges are going down every year, and that's why we feel like we're in a really good sweet spot and have a real ability to really help a lot of people."

Rethinking Credit for Everyday Americans

DiMarco hopes that one day, the credit system will evolve to recognize companies that reward responsible financial habits instead of punishing consumers for trying something new.

For now, Perpay's model is offering an alternative for millions of Americans who might not qualify for traditional loans or credit cards but still want to build financial stability.

For working families trying to get ahead — not just get by — that balance could make all the difference.

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This article Forget Traditional 'Buy Now, Pay Later': This Startup Says There's a Better Way to Build Credit originally appeared on Benzinga.com

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