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Klarna Vs Afterpay: How to Choose?

Both Klarna and Afterpay are good financing platforms. But which one is better, you can check this detailed comparison between Klarna vs Afterpay.
klarna vs afterpay

Are you sitting on the fence wondering where Klarna or Afterpay is the better financing platform to opt for?

In the present era, where the whole world is shifting to online trends, how can payment methods lack behind? That is why the BUY NOW PAY NOW (BNPN) trend is increasing. Two popular BNPN sources are Klarna and Afterpay. Both offer equally valuable servers. Therefore, choosing between Klarna vs Afterpay is never easy.

So, here we have come up with a detailed comparison of Afterpay vs Klarna for merchants, businessmen, and other people.

Afterpay Vs. Klarna: An Overview

What is Afterpay?

Launched in 2015, Afterpay is a pay-later financing app that allows users and buyers to buy on the spot and make payments for purchases later on. It is commonly used in Australia, the United States, and Canada.

It offers interest-free, no fees, and no credit check installments to eligible buyers for six weeks. However, if you pay the installment late, an extra fee, termed as a Late Fee, is charged. Whenever you make a purchase using Afterpay, you can break down your bulky price into four installments, pay the first installment on time, and pay the remaining in the span of 6 weeks.

afterpay vs klarna: What is Afterpay

What is Klarna?

Founded in 2005, Klarna is a Swedish payment processor particularly common in Europe. It works by partnering with third-party retailers that offer financing solutions.

Klarna offers the following three plans on its checkout list:

  • Pay in 4 offers you a four-installment plan. You can pay for your purchase in 4 installments, and each installment comes after two weeks. However, you need to pay the first installment at checkout.
  • Pay in 30 days allows you to pay for the entire purchase within the span of 30 days. Moreover, there is no compulsion to pay some amount during checkout.
  • 6 to 36 months of financing services for pricier purchases with monthly installments.
afterpay vs klarna for merchants: What is Klarna?

Afterpay Vs. Klarna: Requirements for Sign Up

When comparing Klarna vs. Afterpay for business and merchants, we should first know the sign-up requirements and factors that make you eligible for it.

So, let’s find the sign-up requirements of Afterpay and Klarna one by one.

For initial sign-up, both ask for the same information, including your email address, date of birth, valid ID, bank account, and credit card details.

If you want to get approved by Afterpay:

  • You must be older than 18 years.
  • You should be an authorized credit or debit card holder.
  • The purchase made should be greater than $35.
  • You will pay 25% of the purchase on the spot.
  • You may pay the remaining purchase in four installments after two weeks.

On the other hand, you get approved by Klarna,

  • You must be at least 18 years old.
  • There should be a positive credit history of yours (For information, you can register for free with any Credit Reference Agencies).
  • You should not be in a lot of debt.

Afterpay Vs. Klarna: Limits

Online payment services may have a minimum and maximum spending limit that you must have to use their services.

For Afterpay, luckily, there is no minimum spending limit. You can go for a $5 purchase too. However, the maximum limit for the initial users is between $350 to $500, and it increases with time as you shop more. The maximum amount that Afterpay offers is $1500.

Klarna considers several factors like your order size, your loyalty to Klarna, repayment details, and many other things. It has a minimum spending limit that changes from region to region. Mostly, the minimum spending limit is $10. But for Australia, it is $35.

Afterpay Vs. Klarna: Fees

Both Klarna and Afterpay don’t charge any fee for signing up or interest for using the four installment service. Similarly, there are no “Prepayment” penalties.

However, if you pay late, then the late fee is charged.

  • Klarna charges $7 as its late fee.
  • Afterpay charges $10 at least as its late fee if the offer value is less than $40. If your purchase was greater than that, then 25% of the installment is charged as the late fee.

Moreover, if you choose any other repayment term of Klarna, like the 6 to 36 months repayment plan, then you are charged interest by the retailers.

Afterpay Vs. Klarna: Platforms Supported

Klarna works with the following major eCommerce platforms and PSPs to make effortless integrations:

  • Shopify
  • BigCommerce
  • Worldline
  • Adyen
  • Aero Commerce
  • Astound Commerce
  • Magento
  • Salesforce Commerce Cloud
  • EKM

In comparison to it, Afterpay has the support of the following major platforms:

  • WooCommerce
  • BigCommerce
  • Magento
  • Mangetout 2
  • Ecwid
  • eCorner

Afterpay Vs. Klarna: Countries Supported

Klarna is available in

  • Norway, Sweden, Denmark, Germany, Austria, Netherlands, Great Britain, Belgium, Switzerland, and the USA for checkout
  • Italy, Poland, Germany, Austria, Sweden, Norway, France, Czech Republic, Australia, the USA, Switzerland, Finland, Greece, and Great Britain for individual product payments.

On the other hand, Afterpay is available in

  • United States
  • United Kingdom
  • New Zealand
  • Canada
  • Spain
  • France
  • Australia

Afterpay Vs. Klarna: Customer Service

Having efficient and fast customer service is one of the biggest turns on for buyers, and that is why when comparing Klarna vs. Afterpay for merchants and buyers in terms of customer support and service they offer, Klarna wins the battle.

You can contact the Klarna team via telephone, chat, and email. Moreover, guiding blogs and documents are also present.

However, in Afterpay, you can only contact the team via email or telephone.

Afterpay Vs. Klarna: Pros and Cons

Now that we are up with the detailed comparison between Afterpay and Klarna, let’s look at the ups and downs of the two financing platforms.


The pros of Klarna are:

  • No interest or extra fees on using the four installment payment plan
  • Gives you a visual credit card number to use in other stores too
  • Offers multiple payment plans to choose from
  • No membership, prepayment, or annual fee

However, it comes with a few cons like:

  • It always demands a soft credit check
  • There is a late fee charge
  • It has a minimum spending limit that is high for some countries like Australia


The pros and Afterpay are:

  • Interest-free terms
  • Offers staggered payment
  • A sound alternative to credit card

However, its pitfalls are:

  • Large late payment fees
  • Has a low spending limit
  • You can’t pick the payment date and time by yourself. Instead, Afterpay chooses one for you.

Our Verdict

Klarna and Afterpay are both equally good financing platforms. Where Klarna offers a lot of payment plans for large purchases, Afterpay is ideal for smaller purchases and makes it easy to impulse purchase.

However, when comparing Klarna vs. Afterpay, Klarna is definitely a better option due to better plans, more supported countries, and fewer late fees.

Alternatives to Klarna and Afterpay

If you don’t like both Klarna and Afterpay and are looking for some alternatives, here are some options to go for:

  • Seezke
  • PayPal Credit
  • Split it
  • Affirm
  • Zip
  • GoCardless


  1. Does Klarna hurt your credit score?

No, Klarna doesn’t hurt or affect the credit score at all. However, information like payment holidays, unpaid balance, debt, etc., is visible to other lenders.

  • Does Afterpay affect credit?

No, it doesn’t affect your credit rating as long as you are paying debts and installments on time.

  • What credit score do I need for Klarna?

There is no minimum credit score requirement for Klarna.

  • Why is Klarna making me pay more upfront?

The most probable reason behind Klarna making you pay more upfront is that your order amount is higher than the maximum spending limit you have.

  • Does Klarna do 6-month payments?

Yes, Klarna offers 6 to 36 months payment plans, but only for larger purchases.

  • Can I pay off Klarna early?

Yes, you can pay off installments of Klarna earlier than the assigned date or time.

  • Can I pay my bills with Klarna?

No, you cannot pay credit cards, utility bills, or phone bills via Klarna.

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