Klarna vs Afterpay? Which Buy Now Pay Later Service Reigns Supreme?

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June 10, 2022
3 Minute Read

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Adam’s Key Takeaway:

Both Klarna and Afterpay offer seemingly identical services. Klarna is offered at 250,000 retailers while Afterpay is only at 86,000. Plus, Klarna also offers additional financing options in addition to 4 interest-free payment plans, and late fees are capped at $7. On the other side, Afterpay does not provide any additional financing option and has a late fee of $10.




Multiple payment options
Late fees
Available at 250,000 retailers
On-time payments do not help credit score
No prepayment fees
Reports delinquencies to credit bureaus


Interest-free financingNo additional financing options
No credit checksAvailable at a smaller network of retailers
No prepayment feesLate fees up to $10

Klarna And Afterpay At A Glance

Interest Charges0%0%
Credit Check RequiredSoft credit checkNo
Repayment Terms25% every two weeks25% every two weeks
Late FeesUp to $7Start at $10, capped at $68
Amount Due at Purchase25%25%
Prepayment Fees?NoNo
Additional Financing OptionsPay in 30 days, 6 – 36 month financing No
Popular RetailersMacy’s, Footlocker, Adidas, Gucci, Bloomingdales, Ralph LaurenAmazon, Target, CVS, Kroger, and Walgreens

Klarna vs Afterpay Terms & Conditions

Repayment Terms

Klarna and Afterpay both offer repayment terms of 4 equal payments, due every 2 weeks with 25% of the purchase price owed at checkout.

Credit Limit

For Afterpay, credit limits usually start at around $500 if you are approved. Spending limits increase gradually as the company becomes more familiar with your spending habits. In general, there are more restrictions on new customers.

Klarna evaluates each purchase individually to decide whether or not to approve. There is no starting credit limit for Klarna users but a minimum spending requirement of $10. If you have used Klarna before, you can view your estimated spending limit, which may vary depending on the store and the payment method used.

Furthermore, Afterpay Klarna considers several factors when determining your spending limit. Factors include:

  • Time of the day
  • Size of the purchase
  • How long you have been a customer
  • Number of purchases paid back

Credit Requirements

Klarna performs a soft credit check when applying to use their ‘Pay in 4’ option.

A soft credit check has no impact on your credit score. And while applying for Klarna does not affect your credit, it’s important to note that if you fail to pay per the agreed-upon terms, the company may report your delinquency to the credit bureaus, which could negatively impact your score.

Meanwhile, Afterpay does not perform any credit check when you apply to use their services.

The website also states that they do not report late payments to the credit bureaus. However, if you fail to pay entirely, it is unclear whether or not they will report the delinquency. However, it’s safe to assume they won’t approve you for any additional purchases in the near future.

Interest Charges & Fees

Late FeesPay in 4: Up to $7
Pay in 30: None
Klarna Financing: Up to $35
Start at $10

If you pay on time, there are no fees and no interest charges when using Klarna’s ‘Pay in 4.

However, late fees up to $7 apply if any scheduled payment remains unpaid after 10 days.

It’s good to note that Klarna’s late fees will never exceed 25% of your installment payment amount.

For Afterpay, late fees start at $10 and are capped at 25% of the purchase price or $68 (whichever is less). An additional $7 Late Fee applies seven days after the payment is due if the payment is still unpaid.

Mobile App: Klarna vs Afterpay

Both Klarna and Afterpay are available in the Apple App Store and Google Play.

The Klarna mobile app offers a wide variety of features:

  • Store to door tracking
  • Hassle-free returns on the app
  • Ability to earn points on purchases for special discounts
  • Ability to create one-time virtual card so you can ‘pay in 4’ anywhere
  • Price drop notifications

Afterpay App features:

  • Curated shopping directory based on your browsing and shopping history
  • Exclusive offers through pulse rewards
  • View upcoming payments and update payment method in-app.

Other Services: Klarna vs Afterpay

While Afterpay does not offer additional financing options outside its four interest-free payments plan, Klarna does offer two additional payment methods.

Pay in 30 Days

Klarna’s ‘Pay in 30 days’ option allows you to receive your order upfront without any interest or fees and provides up to 30 days to make the full payment. This is a good option if you want to try something before buying it without using your debit or credit card.

Klarna Financing

Klarna offers 6-36 months of financing through its partnership with WebBank, member FDIC. It charges an average annual APR of 19.99%, which is relatively high.

Frequently Asked Questions


Real World Investor


Adam is the founder of realworldinvestor.com, an investing website dedicated to helping discerning individuals make the best investment decisions.

Before starting Real World Investor, he was a Senior Vice President at one of the country's largest investment banks. He has over 10 years of experience working in financial services. His experience includes working with complex derivatives while spending many years working on a trading floor.

He has a bachelor's degree in Business Administration, majoring in finance.

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