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Klarna vs. Sezzle (2022)

Klarna vs. Sezzle (2022)

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 well. So, how would both stand against each other? Let’s find out in the Klarna vs Sezzle comparison.


Availability of Klarna and Sezzle
Availability of Klarna and Sezzle

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

  • Australia
  • Austria
  • Denmark
  • Finland
  • Germany
  • The Netherlands
  • Norway
  • Sweden
  • United Kingdom
  • 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 provide 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:

  • card or bank account details
  • phone number
  • date of birth (age verification)
  • 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 done, you are asked to give:

  • email address
  • card or bank details
  • verified ID
  • 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?

Let’s learn how both work in Klarna vs. Sezzle. The video below indicates how buy now, pay later apps work, but the video does not target a specific application.

How do Buy Now and Pay Later Apps Work


Klarna tutorial

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 center 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 with your eBay account.

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 exceeds your limit, an error displays on top of your maximum limit.

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

To 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

In Sezzle, you find the “Pay with Sezzle” option on the checkout page. Although the option is slowly being replaced by the virtual card method, you still find it on some websites.

The virtual card can be added to Google to Apple Pay, but you need to apply for it in the app to use it. Also, the card’s limit might be different from your maximum limit.

The virtual card works in limited stores (in-store), so you need to ensure 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.

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 six weeks to pay back. The first payment is the day of the purchase, while the rest are every two weeks. You also can “Snooze” the payment if you need extra time.

Sezzle works similarly and gives you six 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

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 pay it back.

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 compared many of their features. What do you think of both? Do you have any suggestions? Would you please share in the comments so we can discuss this further?