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Klarna vs. Afterpay (2022)

Klarna vs Afterpay
Klarna vs. Afterpay

Afterpay is one of the most used buy now, pay later programs, while Klarna’s nature makes it a great alternative. What makes them different in 2021? The article explores both and covers Klarna vs. Afterpay.

Sign up

Both ask for the same type of information when you sign up. You can expect:

  • email address
  • phone number
  • date of birth
  • valid ID (in some locations)
  • debit, credit, or your bank account details

To use either, you must verify the payment method.

Regarding the credit check, Klarna does a credit check, and they issue reports that are visible to other lenders. Afterpay does not do a credit check, nor do they send your data to any credit score services.

How do both work?

How do buy now and pay later apps work?


Online: Klarna app is a browser with buy-now, pay-later functionalities. The app comes with an interface where you can browse stores. You can add more stores by tapping on the add new button. When you open a store, the website opens up. You will need a normal store account to purchase anything.

For example, if you are purchasing something on Amazon, you will still need your Amazon account. You can add the items to the cart, which is within your account limits. On the app, you will have an option to pay with Klarna.

The app will automatically detect the cart’s payment, but if for any reason it can’t, there is an option to add the payment manually. Before the payment processes, you get to see the dues and dates. The app creates a ghost card which is only valid for this purchase. After you have purchased the item, the ghost card details are no longer valid.

In-store: The Klarna app offers to use the app card in-store. The steps are the same, but you go to the in-store option instead of the online option. It generates a card to add to Google or Apple Pay. The benefit Klarna has over Afterpay is that it can be used in places that you don’t find in the app.


Online: To pay online, you log in with your Afterpay credentials on the checkout page. The system then shows you your payment plan and terms before purchasing.

In-store: Like Klarna, the Afterpay app can generate a card to save to Google or Apple Pay, and of course, you will need to activate the card in the app to use it in-store.

Related: Afterpay vs. PayPal


Barcode and Limit Afterpay
Barcode and Limit Afterpay

Klarna depending on your location gives you a good amount to spend while you can increase that by repaying on time. Also, depending on your region, there is a minimum spending limit. For example, here in Australia, the cart amount must be at least $35.

Afterpay also offers a maximum limit, but there isn’t any minimum limit. Initially, you get between $350 to $500, but as you shop more, the limit increases. The maximum amount Afterpay offers is $1500.


Repayments in Klanra

With Klarna, the first payment is the day of the purchase. The next three payments are every fortnight. In total, it gives you six weeks to pay back.

Afterpay, on the other hand, is a bit different. For new users, the first payment is the day of the purchase. Like limits, as you use the service more, the first payment shifts to the next fortnight, giving you eight weeks to pay. However, if the amount is much higher, even old users have to pay the first installment on the day of the purchase.

Late fees

Late fees with Klarna vary by location. In some places, they offer additional 7 days to clear the payment, while in some, they charge a fee straightaway. In Australia, the late fee is between $3 and $10, depending on your order. The company has also capped only one late fee per installment.

Order valueLate fee
$0 to $59.99$3
$60 to $99.99$5
$100 to $199.99$7
Klarna late fee in Australia

Afterpay contrarily charges $10 if you can’t clear the payment. This also gives you additional seven days to pay. If you don’t pay the installment, they charge an extra $7. The $10 fee applies if the offer value is less than $40. If the order value exceeds $40, the late fee can be up to 25% of the installment. So, overall, Klarna is a better option in terms of late fees.


Returns with both are straightforward. You return the item and get your money back in Klarna or Afterpay.


Let’s begin this chapter with a quick comparison video.

Comparison video

Related: Afterpay vs. QuadPay

Which one is for you?

Klarna makes online shopping easy. It lets you shop on the popular stores online, whereas Afterpay is for in-store purchases as it mostly offers the online stores of those brands which offer Afterpay in-store.

If only one is available in your region, you don’t choose, but if you are like me, where both are given, why not sign up for both and use them on different occasions. Different brands also offer deals on different payment methods now and then.


The Klarna vs. Afterpay comparison covered the essential features. Thanks for reading, and please let me know what you think of both in the comments below and your experience with either.


Tuesday 25th of May 2021

I prefer Klarna over AfterPay for the simple reason that AfterPay (Eisen & Molnar) has continually acted as if they came up with their concept. I had been using Klarna for 10 years before AfterPay became operational (anywhere). I'm sure the competition between the two will benefit the customers but when you start off by selling a story that just isn't true, the sincerity is all out the window. Eisen & Molnar have no issues with selling a false story, obviously. That trait of character is something I always struggle to understand. It's insulting and dishonest. And that is the foundation of their story.