Both Affirm and Klarna offer Buy Now, Pay Later services with varying interest rates, fees, and repayment options. Klarna has a larger merchant network and offers 24/7 customer support, while Affirm generally does not charge late fees. Users should consider their individual needs and financial situation when choosing between the two.
| Attribute | Affirm Holdings, Inc. | Klarna Bank AB |
|---|---|---|
| Buy Now, Pay Later (BNPL) service availability | Affirm provides BNPL services, allowing consumers to split purchases into installments. They offer payment options at online checkouts, self-checkout kiosks, through digital wallets, and via virtual or physical cards. | Offers Pay in 4 (split purchase into 4 interest-free installments every 2 weeks), Pay in 30 days (pay full amount within 30 days, interest-free), Pay in 3 (divide purchase into three interest-free installments every 30 days), and Financing (longer-term options with monthly payments). |
| Interest rates and fees | Affirm's APR ranges from 0% to 36%. They may offer a 'Pay in 4' option with 0% interest. Affirm does not charge late fees, service fees, prepayment fees, or hidden fees. | Interest-free options include Pay in 4, Pay in 30 days, and Pay in 3 when payments are on time. Financing options have interest rates from 7.99% up to 29.99% APR. Late fees may be charged for missed payments (up to £5 in some regions, up to $7 in the US). |
| Credit score impact | Checking your purchasing power or creating an account doesn't affect your credit score. Affirm uses a soft credit check for prequalification. However, taking out a loan and your payment history may affect your credit score. Late payments (over 30 days) can negatively impact your credit score. | Soft credit checks are typically performed for Pay in 30 days or Pay in 3, which do not affect credit score. Hard credit checks may be performed for financing plans, which can temporarily lower credit score. Klarna reports payment information to credit reference agencies. Timely payments can positively influence credit score, while missed/late payments can negatively affect it. |
| Merchant network size | Affirm has a global network of over 320,000 merchant partners. They are integrated with over 60% of e-commerce in the US. | Over 600,000 merchants globally. Integrated with e-commerce platforms like Shopify and WooCommerce. Includes major brands like Uber, Stitchfix, Away, Stubhub, and New Balance. |
| Loan approval rates | Affirm considers factors beyond your credit score, meaning you may be approved even without an extensive credit history. They assess each application individually. Factors like payment history, credit utilization, and existing debt obligations can influence approval odds. | Evaluates ability to pay using available data. Approval depends on purchase amount, payment history with Klarna, open invoices, and information from external credit agencies. Makes a new automated approval decision each time you pay with Klarna. |
| Repayment flexibility | Affirm offers various repayment term options, including 3, 6, 12, 18, 24, 36, 48, or 60 months. You can set up autopay, and Affirm sends reminders via email and SMS. | Offers flexible payment options including installments, paying in full within 30 days, or spreading costs over an extended period. In some cases, payments can be rescheduled via the app or customer support. Option to extend the next payment date once per order. |
| Mobile app features and user experience | The Affirm app allows users to shop brands, discover deals, manage their Affirm card, track loans, and check their savings balance. It's designed for user experience, transparency, and retailer discovery. | Customers can manage accounts, track orders, view payment schedules, make payments, and access customer support via the Klarna app. The app offers 24/7 help in any language via chat. |
| Customer support quality | Some users have reported negative experiences with in-app customer support, while praising the app's overall functionality. | Offers 24/7 customer support via live chat. Option to request a phone call with a customer service representative. AI assistant can solve over 300,000 customer issues weekly. |
| Late payment fees and policies | Affirm generally does not charge late fees. However, late or partial payments can hurt your credit score and affect your ability to get future loans with Affirm. | Late fees may be charged if an automatic payment fails. In the US, up to $7 may be charged per missed payment. Reminders are sent before and after the due date. A grace period is provided before a late fee is charged. |
| Purchase limits | The highest cart allowable is $30,000. Affirm may finance up to $20,000 for qualified applicants, with the customer responsible for any down payment. The lowest purchase amount is $50. | No predefined spending limit. Maximum purchase using Pay in 4 is typically $1,000. Financing purchases can go up to $10,000. Klarna assigns a Klarna-specific credit limit based on credit score, usage history, and repayment history. |
| Data security and privacy policies | Affirm uses encryption, secure databases, and access controls to protect user data. They conduct regular security assessments and have incident response plans. Affirm's privacy policy states what information they collect, including contact, financial, location, and government IDs. | Uses advanced encryption methods to secure data transmission. Adheres to PCI DSS requirements. Implements Anti-Money Laundering (AML) and Know Your Customer (KYC) procedures. Complies with data privacy laws like GDPR and CCPA. Users can manage, access, or delete personal data. |
| Integration with e-commerce platforms | Affirm integrates with e-commerce platforms and is also available through the Affirm Card, the Affirm App, and digital wallets. | Integrates with major e-commerce platforms such as Shopify and WooCommerce. |