Klarna vs Afterpay (2020) | Final Showdown

Last updated: 12 June 2020 | Reading time: 4.5 minutes | Watching time: 5 minutes

Klarna vs Afterpay
Klarna vs Afterpay

It is just the beginning of the “buying now and paying later” era. New companies are emerging every year. Recently a bank titled Klarna introduced an app called Klarna. It offers to buy now pay later. Although, the purpose is the same. The way both apps work is completely different. The blog post explores both and covers: Klarna vs Afterpay. From availability to repayments, this comparison covers all the essential topics.

Table of contents

Quick Klarna vs Afterpay comparison

Feature Klarna Afterpay
Availability 11 countries 4 countries
Starting limit $200 to $500 $500 to $1,000
Type Online In-store / online
Repayments 6 weeks 6 weeks
Missed payment Additional 7 days (varies by location) $10 fee


Countries Where Klarna and Afterpay are Available
Klarna and Afterpay Availability

Klarna app is available in the United States, United Kingdom, Denmark, Australia, Austria, Belgium, Finland, Germany, Norway, Sweden, Switzerland, and maybe a few more. Recently it has recorded 7 million customers only in the UK.

Afterpay, on the other hand, is an Australian company available in Australia, United States, United Kingdom, and New Zealand. The company will soon start in Canada. Afterpay is available in fewer countries, and the only country it is offered where Klarna does not is New Zealand.

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Sign up process

The sign-up process is pretty straight forward. With Klarna, you need a valid phone number and your email address for the initial process. After signing up, you can browse the app and add products to cart, but you will need to verify your payment information before purchasing the first item.

Afterpay also requires the email address (phone in some locations) to create an account. You will need to add your card details, and they will charge a small amount to verify the payment method.

How do both work?

Interface - Klarna vs Afterpay
Interface – Klarna vs Afterpay

The ways both work are different. Klarna app is actually a browser with additional 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, you see the main website. You will need the normal store account to purchase anything as for those stores you are just using a browser. After you have selected an item which is within limits, add to the cart. Down below, you will have an option to pay with Klarna. The app will automatically detect the payment in the cart, but it also offers to add the total payment manually.

On the next screen, you will find the repayments information. When you pay for the item, the app creates a ghost card which can only be used for the current sale. After you have purchased, the ghost card details are no longer valid. To see the app in action, check out the video: What is Klarna?

Afterpay, on the contrary, is different. After you have signed up, you get to see many stores. Tapping 0n each shows the website and in-store products. Unlike Klarna, Afterpay offers both online and in-store shopping. The second tab on the app is where you find the barcode and the limit. You can refresh the barcode if you don’t see. Furthermore, the barcode is only for in-store purchases. While purchasing anything in-store, you show the barcode to the cashier, and they scan and process the payment.


Barcode and Limit - Afterpay
Barcode and Limit – Afterpay

In the beginning, you don’t get an increased limit. 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 minimum cart amount must be $35.

Afterpay also offers limits, but there is not a minimum spending limit. The maximum is not that much though, Here is Land Down Under, you get to spend $500 in the beginning, and the limit increases by time.

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Repayments on Klarna App
Repayments – Klarna App

Repayments with Klarna are location dependent. The first payment is the day of the purchase. The next three payments are every fortnight. In total it gives you six weeks time to pay for all the money. In some regions, even if you can’t pay on time, you are not overcharged—your rating decreases though, which means decreased limit.

In Australia, if you miss a repayment, the company gives additional days (most likely seven), and if you can’t pay within the additional period, you will most likely be charged. The fee depends on the repayment amount. You can read about the rules in your region on the Klarna website.

Afterpay, on the other hand, also charges the first payment on the purchase day, and the rest are every fortnight. If you miss a payment, you will be charged a $10 fee. Afterpay does not use any rating system, but not paying the required amount may lead to no limit increase.


When you refund something, you must notify Klarna customer service, so then they can process the request. If you don’t inform them, there will be a delay in the refund process. With Afterpay, while refunding in-store and online, the system will automatically detect the email address, and you’ll get the money back to your account.


Still not sure? Let’s watch this Klarna vs Afterpay video and see both in action.

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, then, of course, you don’t have a choice, but those who have access to both, why not sign up on both and use them at different occasions.


The Klarna vs Afterpay comparison covered the basic features. Thanks for reading, and please let me know what you think of both in the comments below and your experience with any. I’ll keep updating this article as new information comes.

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