Klarna vs. Sezzle

Klarna vs Sezzle
Klarna vs. Sezzle

I have written multiple articles on buy now and pay later apps but never compared Klarna and Sezzle. Both are widely popular, and although there are a few differences, both are doing pretty good. So, how would both stand against each other? Let’s find out in the Klarna vs. Sezzle comparison.

Klarna vs. Sezzle: Quick comparison

Supported nationsOver 10US and Canada
Starting limitAround $1000$2500
Maximum limit
Repayment cycleFortnightlyFortnightly
Repayment time6 weeks6 weeks
Late fee$3 to $15$10
Quick comparison table


Availability of Klarna and Sezzle
Availability of Klarna and Sezzle

Klarna is one of the apps available in over 10 nations. You can use the app as long as you are in one of the below countries.

  1. Australia
  2. Austria
  3. Belgium
  4. Canada
  5. Denmark
  6. Finland
  7. France
  8. Germany
  9. Italy
  10. The Netherlands
  11. New Zealand
  12. Norway
  13. Spain
  14. Sweden
  15. Switzerland
  16. United Kingdom
  17. United States

Sezzle, on the other hand, is only offered in the US and Canada, but merchants from other countries can sign up for the service. Over 34,000 stores across both countries offer the service.

Signing up

Klarna may offer options to sign up with local brands. For instance, in Australia, people can sign up and use their Commonwealth Bank account to use Klarna.

Additional options to sign up with Klarna are:

  1. card or bank account details
  2. phone number
  3. date of birth (age verification)
  4. email address

The first steps are to create the account, while the repay information is provided later before making the first purchase.

Sezzle also asks for the same type of data. The first action is to verify the phone number. Once that’s done, you are asked to give:

  1. email address
  2. card or bank details
  3. verified ID
  4. date of birth

Credit check and affect

Both Klarna and Sezzle do a soft credit check which does not affect your score but gives both businesses an idea of your overall score.

Related: Klarna vs. Afterpay

How do both work?

How do Buy Now and Pay Later Services Work


Klarna App
Klarna App

There are multiple ways to use Klarna. The Klarna app is integrated with a browser in which you can visit websites to shop. While visiting, an option called Pay with Klarna appears on the bottom centre of the screen. As the app is a browser, you might need to log in with the store’s account. For example, while shopping on eBay, you will need to sign in on eBay.

When you get to the checkout page, you tap on the “Pay with Klarna” button. The next step is to insert the amount that you want to spend. If the amount is more than your limit, an error displays on top of your maximum limit.

The next part is where Klarna gets creative and creates a ghost card, also called a one-time card. The ghost has the amount that you put in and can be used for that purchase.

You can also use Klarna in-store. The app offers to generate a digital card to add to Google or Apple Pay. However, to use the card, you will need to:

  1. Go to the Klarna app
  2. Tap on the in-store option
  3. Search for the store
  4. Insert the amount on the next screen
  5. Tap on the repayment method and confirm the repayment dates
  6. Finally, use the card in Google or Apple Pay


How Sezzle Works
How Sezzle Works

Sezzle contrarily is like Afterpay, where you find a “Pay with Sezzle” option and log in to your account to pay online. The company also offers a virtual card to add to Google or Apple Pay. You need to apply for the card to access it in the app, and the card’s limit might be different than your maximum limit.

The virtual card works in limited stores (in-store), so you will need to make sure that the brand supports Sezzle virtual card before using the card in-store.


Klarna vs. Sezzle Offering Limits
Klarna vs. Sezzle Offering Limits

The available limit is the next section of the Klarna vs. Sezzle comparison. Klarna is generous and can offer up to $1000 in the beginning. The company has said that depending on your account status; we can increase the limit.

The website also mentions that you can try purchasing an item more expensive than your maximum limit and see if the system grants the request. If it does, your limit will automatically increase.

Related: Klarna vs. PayPal

Sezzle, on the other hand, comes with a $2500 limit, but before making the purchase, a few things are checked to make sure that you can pay back on time. One of them is 25% of the order money upfront. You can also expect an increased limit after some successful repayments.


Repayments on Klarna App
Repayments – Klarna App

Klarna offers 6 weeks to pay back. The first payment is the day of the purchase, while the rest are every 2 weeks. You also have the option to “Snooze” the payment if you need extra time.

Sezzle works similarly and gives you 6 weeks to pay back. The first payment is the day of the shop, while the rest are every fortnight.

Late fees


As Klarna is available in multiple regions, the late fee is region dependent. In Australia, the fee is between $3 and $15, depending on the total order value. The table below is taken from the website and covers the late fee (Australian Klarna website).

Order valueLate feeMaximum fee on order
$0 to $59.99$3$9
$60 to $99.99$5$15
$100 to $199.99$7$21
Klarna late fee in Australia


Sezzle Late Fee Meter
Sezzle Late Fee Meter

You may get two extra days to clear the payment if you miss a payment. The company charges a $10 fee, and your account is deactivated until you don’t payback.

Related: Afterpay vs. Sezzle

Which one is for you?

Well, it’s a tricky question. From what we have discovered above, I suggest going with Klarna if you want an app to shop online. It offers a decent amount of money to spend, and you can spend on more stores than Sezzle. Sezzle is great and offers over $2000, but it is not available in as many stores as Klarna.

The third and the option I like is signing up for both and enjoying both on different occasions. For example, if one service offers some cashback on a particular store, use that one. It is a win-win decision.



With the rapid increase in online shopping, the buy now and pay later period is ending anywhere soon, and with new services, we might get good rewards. So, I recommend signing up for at least one service to enjoy any rewards in the future.

Anyway, the article Klarna vs. Sezzle talked about the two services. What do you think of both? Do you have any suggestions? Would you please share in the comments so we can discuss further?

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top