Klarna vs. Afterpay
If you're a fan of online shopping or own an e-commerce business, you're likely familiar with Klarna and Afterpay. These two buy now, pay later (BNPL) payment processing technologies allow customers to receive their items immediately and pay for their purchases later. So, what are the differences between Klarna and Afterpay? Let's take a look:
Fees
One of the most significant differences between the two BNPL services is the fee structure. Klarna charges merchants a fee of 3.29% + $0.30 per transaction, while Afterpay charges a slightly higher fee of 4.17% + $0.30 per transaction. For consumers, Klarna offers a more flexible payment system with no fees or interest charged as long as the customer pays on time. Afterpay, on the other hand, charges customers a late fee of $10 per missed payment, plus additional fees if the account remains unsettled.
Transaction Limits
Klarna and Afterpay both offer maximum transaction limits, but Klarna's limit is higher. Afterpay’s maximum limit for purchases is $2,000, while Klarna allows purchases up to $3,000. However, both services require customers to have a good credit history to access the higher transaction limits.
Payment Options
Klarna offers more payment options than Afterpay. With Klarna, customers can choose to pay the entire balance at once, split the payment into four interest-free installments, or choose to pay for their purchase in installments with interest. Afterpay only allows customers to split their payments into four installments.
Availability
Afterpay is available in Australia, New Zealand, the United States, and the United Kingdom, and Klarna operates in those countries as well as in Germany, Austria, Switzerland, Finland, Norway, the Netherlands, and Sweden. So, if you're a business owner looking for a BNPL service to provide your customers, Afterpay may not be an option depending on where you're located.
Conclusion
Ultimately, both Klarna and Afterpay offer a convenient way for customers to make purchases and pay for them later. Klarna may be the better option for customers who want more payment flexibility and for businesses looking for a higher purchase limit. Afterpay, on the other hand, may be a good option for businesses operating in Australia, New Zealand, the United States, or the United Kingdom. The choice between the two ultimately depends on the specific needs and preferences of the customer or business.