What Is the Difference Between Klarna and Affirm?

Which is better: Klarna or Affirm? The highly popular Buy Now, Pay Later (BNPL) services, with a combined market share of 35%, each have their own unique advantages and drawbacks. In this comprehensive guide, we’ll explore both Klarna and Affirm in detail, comparing their key features, repayment terms, customer experience, and security measures. By the end, you’ll clearly understand which BNPL service suits your financial habits best.

Key Features Comparison: Klarna vs. Affirm

Interest Rates and Fees

Both Klarna and Affirm don’t charge interest when you use their “Pay in 4” short-term installment options. However, when it comes to extended financing plans, both platforms may apply interest costs. The precise Annual Percentage Rate (APR) depends on factors such as your credit score and the length of the loan. On Affirm, interest can range between 0 and 36%, while Klarna’s maximum rate typically reaches 33.99%. As a general rule, the shorter the repayment period, the lower the interest costs will be.

Affirm stands out for having no hidden fees whatsoever, including late fees, which is an appealing benefit for many users. Klarna, in contrast, may charge a $7 late fee if you miss an installment payment.

Repayment Terms

So, is Klarna or Affirm better when it comes to flexibility? Klarna’s primary service, “Pay in 4,” divides your purchase into four equal payments, while Affirm’s repayment periods depend on the provider and the purchase value.

With Klarna’s pay-in-four financing plan, you pay 25% of the total amount upfront, while the remaining balance is spread across three biweekly installments. If you pay on time, the entire purchase is cleared within six weeks with no added charges or interest. For larger or more expensive purchases, Klarna offers extended financing plans that can last up to 36 months. In these long-term plans, payments are typically made once per month, providing a more relaxed schedule for higher-value items.

Affirm also provides a wide range of repayment options. Just like Klarna, the lender’s repayment terms range from short-term “Pay in 4” plans and long-term repayment options of up to 36 months. These flexible plans allow you to choose what best fits your budget and repayment preferences.

Impact on Credit Score

A common question users ask is: Does Klarna or Affirm affect your credit score? Both platforms perform a soft credit check for “Pay in 4” plans, which doesn’t impact your rating. However, missed Klarna payments are reported to the credit bureaus and can lower your score. Furthermore, if you wish to apply for a long-term loan, you’ll have to cope with a hard credit check.

As for Affirm, it also reports payment activity to the Experian and TransUnion credit bureaus. This includes late payments, on-time payments, and missed ones. This applies to plans that started after April 1, 2025.

Purchase Limits

One more difference between Klarna and Affirm is their purchase limits. Klarna doesn’t have a universal spending cap, determining it on an individual basis. It usually depends on your payment history, creditworthiness, and the store you’re shopping at.

Affirm, on the other hand, has a more straightforward fixed limit per purchase — up to $30,000. This means you can make multiple purchases with Affirm as long as each one doesn’t exceed this limit. However, the overall credit limit on Affirm is also variable and determined by your credit score and individual merchant policies.

Mobile Applications

Klarna and Affirm apps are available on both iOS and Android. Both apps allow users to monitor their payment schedule, due dates, and payment history. They also provide a clear overview of their account balance, transaction history, and available credit any time.

The Klarna app helps users find the best product deals through its price comparison tool. It also has a personalized AI-powered feed with promotions from multiple retailers.

Affirm integrates a prequalification feature into its app, allowing users to get pre-approved for credit by submitting some personal details before shopping. It also provides tailored recommendations based on their spending habits.

Customer Experience

Is Klarna or Affirm better at creating great customer experiences? Let’s compare these platforms.

Despite the functionality of the Klarna app, its user rating on the Play Market is slightly lower than on the App Store — 4,7 and 4,9, respectively. Users complain that it sometimes takes too long to load card details, especially in rural areas. The app supports 17 languages, though Eastern European languages are not included. Klarna offers AI customer support in over 35 languages, 24/7 chat with specialists, as well as traditional phone and email support.

Affirm has similar user ratings on both the App Store and Play Market — 4,9. However, it’s unavailable on some devices, so checking system requirements beforehand is advisable. Affirm has a smaller list of partner retailers compared to Klarna. However, users can get an Affirm debit card, which is essentially a Visa card that can be added to Apple Wallet or Google Pay. The platform lacks chat support, offering only phone and email assistance. Many users note that response times via email are poor, so calling is the better option.

Security and Privacy

Klarna’s security system includes AES-256 encryption to protect data during transmission and storage, along with tokenization to replace sensitive information with unique identifiers. The service uses two-factor authentication and complies with regulations like PCI DSS, GDPR, and CCPA.

Strong Customer Authentication further enhances security by requiring multi-factor verification. Additionally, Klarna uses advanced machine-learning risk-management tools to detect and prevent fraud.

Is Affirm like Klarna in this regard? Not exactly. Affirm also employs encryption and tokenization to safeguard customer data. However, it features a bug bounty program that invites security experts to help find and fix vulnerabilities in its app and website.

Alongside machine learning, Affirm also utilizes fraud-scoring models to prevent suspicious activity. But unlike Klarna, it doesn’t adhere to international security standards. Instead, Affirm complies with PCI DSS Level 1 and conducts regular audits.

Pros and Cons

And still, what’s better: Klarna or Affirm? Both services have strengths and weaknesses to consider.

Klarna

Pros:

• Ability to shop at any US retailer;
• Several ways to pay for purchases;
• Available in 20 countries;
• Doesn’t charge interest in “Pay in 4” financing;
• Sends price notifications for saved items.

Cons:

• Runs a soft credit check for basic transactions;
• Performs a hard credit check for long-term loans;
• Charges late fees;
• Reports late payments to credit agencies.

Affirm

Pros:

• No late fees;
• Interest-free options for short-term purchases;
• Adaptable repayment plans for up to 36 months;

Cons:

• Reports late payments to credit agencies;
• High interest rates for longer-term loans;
• Limited list of partners.

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