Affirm and Klarna are two popular apps offering buy-now-pay-later (BNPL) payment options, but which is the best for you? While both apps allow you to make purchases without a credit card and pay later in installments, they each have their peculiarities and unique selling point.

Here, you’ll discover the key differences between the two BNPL options, including their features, fees, and user experience. Consequently, you can compare them and find the right fit for you.

What Do Affirm and Klarna Do?

Affirm and Klarna are two of the best buy-now-pay-later sites that support online credit buying for online shoppers today. You can purchase items today without using your credit card and pay over a stipulated period, usually in four parts. These two funding companies provide easy financing for in-store and online spending.

Furthermore, purchases made with the apps have no added interest or fees, provided you pay at the stipulated time. That’s not all. Both services offer loans that tend to be approved quickly with standard interest rates. Now that we've covered how buy-now-pay-later works on these platforms, let's delve into the details.

Affirm vs. Klarna: Availability

Affirm caters primarily to businesses in North America, specifically in Canada and the US. However, you can use the service from anywhere worldwide, provided you have a billing address in either country mentioned above. This limitation may make it less appealing if you don’t live in those areas, albeit it’s still a great option.

Conversely, Klarna offers customers various services and products in different regions. For example, its in-store checkout service is available in most of Europe, including France, Belgium, the Netherlands, Sweden, Poland, Austria, Italy, Germany, Norway, Spain, Denmark, and Switzerland.

It’s also accessible to customers in the UK, the US, Canada, and Australia. At the same time, you can use its payment methods for individual products in Portugal, the Czech Republic, and Finland, as well as those mentioned above. Furthermore, you can pay with your card in various currencies, including AUD, CAD, CHF, PLN, DKK, EUR, GBP, NOK, SEK, and USD.

Do Affirm and Klarna Have Mobile Apps?

Both services do offer mobile apps. The apps contain several features, including viewing your purchase and payment history, updating your payment mode, and tracking deliveries.

Klarna’s mobile app houses exclusive deals and discounts for customers at over 250,000 retailers and notifies you of any price slash. Furthermore, you can get a virtual card for purchases online from US vendors that don’t offer Klarna.

In addition, you can earn rewards from purchases when you join the free rewards club on the platform. As you purchase with the app and pay when due, you unlock higher purchasing power, increased spending limits, and more exclusive offers.

What about Affirm? Over 207,000 merchants use Affirm, and you can make payments in a physical or online store with the app. Also, you can search for offers from available vendors and get exclusive deals with as low as 0% financing. Another exciting feature of the Affirm app is its high-yield savings account with no minimum limits or charges.

Affirm vs. Klarna: Security

It’s normal to ask if Klarna is safe to use, and fortunately, it is. Klarna’s security measures play a significant role in its popularity today. The company offers you the option to pay via direct online banking through its Pay Now service. So, it works with Sofort GmbH, a technical service provider, to ensure the security of your online banking login details, such as your PIN and TAN, with AES 256-bit encryption.

This means your sensitive information is not accessible to merchants, Klarna, or Sofort employees. Additionally, TÜV Saarland, an external reviewer, regularly tests and certifies Sofort GmbH's procedures, providing an extra layer of security.

On the other hand, if you want to use Affirm for your BNPL purchases, you can rest assured that the company also meets the required standards for ensuring user data and funds' safety. The additional security features available on Affirm include multi-factor authentication, including fingerprint and social security number (SSN) protection.

Affirm vs. Klarna: Payment Methods

With Affirm, you can pay using your debit card, checking account, MoneyGram, personal checks, money orders, cashier’s checks, and credit card. Also, Affirm allows you to mail a check to the company’s address provided. However, checks may take up to 10 working days to process. Thus, it is best to use a faster payment alternative if your pending payment is due.

Klarna offers instant card payments with debit and credit cards. You can also use an invoice if you pay within 30 days. Ultimately, regarding payment options, Affirm provides more opportunities for money transfers as it's more versatile.

Affirm vs. Klarna: Interest and Fees

Klarna doesn’t charge any fees if you redeem your payments on time. Also, if you miss a payment, the company will try again to retrieve it. So, you can defer payment for 14 days, providing some flexibility. However, Klarna may charge you a $7 fee on each missed installment after this delay period.

If you’re facing financial difficulties and can’t meet your repayment obligations, you can contact the company, which provides support and alterations to assist customers. Nevertheless, remember that the payment delay option isn’t a long-term solution, and you may be suspended from using the BNPL service if you consistently miss your repayments.

Affirm, on the other hand, has no hidden fees or charges for late payments. Thus, it is preferable if you live in a region that supports it. Also, Affirm does not compound interest on its loans. However, the interest rate on your loan may reach up to 30%, depending on your credit score and the borrowed sum.

Affirm vs. Klarna: Credit Requirements

Klarna has no minimum credit point requirement for its four-part-payment product. To qualify for the pay-in-four loan type, Klarna runs your credit history through a soft credit check that does not affect your credit score or reflect on your credit report.

However, it may report neglected payments to the relevant credit bureaus. Also, Klarna's long-term financing option (usually up to 36 months) requires a hard credit check, and you can qualify for it with a good credit score and payment track record.

The credit requirement on Affirm is different. The company conducts a soft credit inquiry before you are qualified to make purchases. Furthermore, your purchases, used credit, payment history, and the period you opened the account may impact your credit score.

Affirm and Klarna Are Great Options for Your BNPL Needs

Overall, Klarna and Affirm are two fantastic BNPL services for online shoppers that offer flexible payment options. While both services have unique features and benefits, Klarna stands out with its superior security measures, two-factor authentication, and real-time monitoring. On the other hand, Affirm offers more extensive financing options and the ability to split payments into smaller installments.

Ultimately, the choice between these two services depends on your specific needs and preferences as a shopper. Of course, using these services on shopping sites with free international shipping can save you some money too.