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Afterpay Vs Klarna

Afterpay Vs Klarna


Here at Later Gator, we are excited to announce that we now offer Klarna along with our other pay-later services. Originally founded in Sweden and now taking on the global pay-later scene, Klarna has been making online shopping easier for 15 years, serving over 85 million shoppers. 

So what sets Klarna apart from other pay-later services, such as Afterpay? Here is a breakdown of the key similarities and differences.

The Difference Between Klarna and Afterpay

Signing Up

If you are over 18, have a valid credit or debit card, and live in Australia, you are eligible to sign up for Afterpay. Klarna requires the same information upon sign up, with one notable difference. While afterpay doesn’t run credit checks, Klarna does. 

Their credit checks determine the eligibility of new customers, so if you have particularly bad credit this could prevent you from using Klarna as a payment method. Not only do you undergo a credit check when you sign up, but also with each purchase. Don’t worry, these checks won’t impact your overall credit score.


Neither Afterpay nor Klarna charges any fees or interest, provided that the full repayments are made on time. Once your payments are overdue, Afterpay charges a $10 late fee with a further $7 fee if the late payment isn’t repaid within a week. Klarna gives you a ‘slack period’ of two to seven business days after a missed payment. If you fail to repay in that period, you will be hit with a late fee of $3 for orders under $100 and $7 for orders above $100.

Payment Schedule

Their payment schedule is also quite similar. Afterpay is known for its payment schedule of four equal payments spread over 8 weeks. Klarna also splits your payment into four, with the only difference being that the payments are paid back over 6 weeks. You can also opt to pay back early if you would like.


One feature that Afterpay and Klarna share is they both have apps that make your pay-later experience easier to manage. Both apps allow you to make payments and monitor your account, which is perfect for staying on top of payments wherever you are. The Klarna app even lets you shop on the app itself. Klarna also prides itself on providing 24-hour support, seven days a week, available through their app.


Perhaps the biggest difference between Afterpay and Klarna is the accessibility of Klarna. The way that Afterpay and many other pay-later services work is they partner with specific brands and merchants. While this is great for deals and discounts, it means that you can only use these services at those specific stores. Klarna works differently. With Klarna, you can shop at any Australian merchant through their app.

Known as the world’s first pay-later service, Klarna is a trusted platform for spreading out your payments. The fact that you can shop anywhere using Klarna also means that you can stick to just one pay-later service for all of your shopping needs.

Alongside Klarna and Afterpay, we also offer Laybuy, PayItLater, SplitIt, LatitudePay, Openpay and Zip so that you can shop the way you want now and pay later. To find out how the other pay-later services compare, check out this blog post.

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