Is Klarna or Afterpay better for merchants?

Both are popular with merchants. Klarna has a broader global merchant network and more payment options for customers, potentially increasing average order value. Afterpay (now owned by Block/Square) integrates well with Square merchants. Merchant fees are similar: 4–6% per transaction plus a fixed fee.

Klarna vs Afterpay (2026): Which Buy Now Pay Later Is Better?

By ToolVS Research Team · Updated April 10, 2026

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Quick verdict: Klarna wins for flexibility — it offers pay-in-4, pay in 30 days, and longer-term financing across a larger merchant network. Afterpay wins for simplicity — it's strictly pay-in-4 with no credit check and is very popular in fashion and beauty retail.

Klarna

8.5/10

Best for flexible payment options globally

Afterpay

8.2/10

Best for simple pay-in-4 shopping

Feature Comparison

Feature	Klarna	Afterpay
Payment Options	Pay in 4, Pay in 30 days, 6–36 month financing	Pay in 4 only (fortnightly installments)
Interest	0% for pay-in-4 and pay-in-30; interest on longer terms	0% when paid on time
Late Fees	$7 or 25% of order (capped)	$10 late fee (capped at 25% of order)
Merchant Network	500,000+ global merchants	100,000+ merchants (fashion/beauty focus)
Credit Check	Soft credit check for financing options	No traditional credit check
Virtual Card	Yes — use Klarna anywhere Visa is accepted	Yes — Afterpay Card for in-store use
Countries	20+ countries	8 countries (US, AU, NZ, UK, CA, etc.)
Best For	Flexible shoppers, international use, large purchases	Shoppers wanting simple pay-in-4, fashion retail

Which do you use?

Klarna

Afterpay

Who Should Choose What?

→ Choose Klarna if:

You want flexible payment options beyond pay-in-4 (30-day free trial or longer financing for bigger purchases). You shop internationally. You want to use a BNPL service at a wider range of merchants including those that don't specifically partner with a BNPL provider (via Klarna's virtual card).

→ Choose Afterpay if:

You want the simplest possible split-payment option with no credit check. You primarily shop at fashion, beauty, or lifestyle retailers that partner with Afterpay. You're in the US, Australia, or UK where Afterpay has strong merchant partnerships.

Frequently Asked Questions

Is Klarna or Afterpay better for consumers?

Klarna offers more flexibility — you can choose pay-in-4, pay in 30 days, or spread payments over 6–36 months. Afterpay is strictly pay-in-4 with no other options. For simple needs, both are comparable. For larger purchases or international shopping, Klarna is more versatile.

Do Klarna and Afterpay hurt your credit score?

Afterpay does not perform credit checks. Klarna does a soft check (doesn't affect your score) for pay-in-4 and pay-in-30, but does a hard check for longer-term financing. Neither will hurt your credit for standard installment use, but missed payments can affect your account standing with the service.

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Last updated: April 10, 2026