Both Klarna and Square are strong contenders in the payment processing and BNPL space, each with distinct advantages. Klarna excels in providing diverse BNPL options and broader international support. Square stands out with its comprehensive payment processing platform, business loan availability, and transparent pricing. The choice depends on specific business needs, with Klarna being ideal for businesses prioritizing BNPL and international reach, and Square being suitable for those seeking a comprehensive payment solution with lending options.
| Attribute | Klarna | Square |
|---|---|---|
| Buy Now, Pay Later (BNPL) Options | Offers Pay in 4, Pay in 30 days, longer-term financing plans, and Pay in 3 (in some regions). | Offers BNPL through Cash App Afterpay in the US and Australia, and Afterpay in Canada, allowing customers to pay in four interest-free installments over six weeks. Merchants are paid in full at the time of purchase, minus a processing fee (6% + 30 cents for online, possibly discounted to 2.6% + 30 cents for in-person). |
| Merchant Processing Fees | Klarna Pay Later: 3.29% + $0.30 to 5.99% + $0.30 per transaction. Klarna Pay Now: Approximately 2.99% + $0.30 per transaction. Klarna Financing: 3.29% + $0.30 to 5.99% + $0.30. Chargeback fee: Approximately $15. | In-person: 2.6% + $0.15. Online: 2.9% + $0.30 (3.3% + $0.30 for Payment Links). Keyed-in/Card on File: 3.5% + $0.15. Invoices: 3.3% + $0.30 for cards, or 1% (minimum $1) for ACH. No startup, statement, PCI-compliance, or refund fees. |
| Point of Sale (POS) System Integration | Integrates with existing POS systems and online platforms through APIs and plugins. Integrates with major e-commerce platforms. SensePass provides a virtual payment terminal that integrates with systems like Oracle Xstore, Aptos, NetSuite, Dynamics 365, Microsoft Business Central, NCR, LightSpeed, and Jotform. | Comprehensive payment processing platform suitable for businesses of all sizes. Known for ease of use and setup. Offers native add-on features like invoicing, payroll management, and inventory tracking. Integrates with existing POS systems. |
| Mobile Payment Acceptance | Simplifies the checkout process and enhances convenience, especially for mobile users. | Accepts various mobile wallets like Apple Pay, Google Pay, Cash App, and Samsung Pay. Square Reader accepts chip and PIN, contactless, and magnetic stripe payments. Standard processing fee of 1.75% per transaction applies to all card payment types, including international cards. |
| International Payment Support | Operates in 45 countries. | Card payment acceptance available in the US, Canada, Australia, Japan, the UK, Republic of Ireland, France, and Spain. Does not support cross-border card payments. Supports eight currencies. |
| Business Loan Availability | Not available | Square Loans are available to small businesses that process payments through Square. Eligibility is based on processing volume (typically at least $10,000 annually), payment frequency, and customer base. Requires a minimum repayment amount every 60 days. Charges a flat fee with no prepayment penalties. |
| Early Payout Options | Settles the transaction amount with the business within two to three business days, typically via bank transfer or ACH payment. | Not clearly specified, but Square offers a business debit card that allows instant access to funds. |
| Customer Support Channels | Customers can manage their Klarna accounts through the Klarna app, where they can track orders, view payment schedules, make payments, and access customer support. | Offers phone, email, and chat support. Phone support: (855) 700-6000. Email: support@squareup.com, sellersupport@squareup.com, payments@squareup.com. Chat support is available Monday through Friday, 4 AM to 6 PM PT. Square Community forum for peer-to-peer and official support. 24/7 phone support is available to customers who subscribe to some of the paid tiers on their software plans. |
| Fraud Protection Measures | Uses sophisticated risk-management algorithms powered by machine learning to detect and prevent fraudulent activities. Protects merchants from the financial impacts of non-paying customers by assuming the risks linked to its financing. | Monitors store activity and uses machine learning to flag dubious orders. Sends alerts about unusual customer behavior. Square Risk Manager assesses risky payments, blocks repeat fraud, and creates alerts. |
| Integration with Accounting Software | Integrates with accounting software, reducing manual data entry and ensuring accurate financial reporting. Accounting software like Link My Books integrates with Klarna to automate accounting for sales, fees, and taxes. Klarna can be integrated with Xero and QuickBooks. | Integrates with QuickBooks, Xero, Zoho Books, Sage Intacct, and NetSuite. Square and Xero work together to automatically sync Square transactions and get a daily summary of sales invoices into Xero. Automates the transfer of Square sales data to accounting software. |
| User Interface and Ease of Use | Easy to set up and user-friendly. Provides a user-friendly interface that caters to diverse customer needs. Klarna's interfaces support assistive technologies such as screen readers, keyboard navigation, and speech recognition software. | Known for its ease of use and setup. Offers in-app support and tutorials. User-friendly platform for both merchants and customers. Offers training resources and in-app support. |
| Scalability for Growing Businesses | Uses a distributed architecture to ensure scalability and reliability, handling high transaction volumes and maintaining uptime even during peak periods. | Suitable for businesses of all sizes, from small startups to large enterprises. Offers tools to manage staff and payroll. Scalable to accommodate the needs of growing businesses. Offers various tools and features to manage increasing transaction volumes. |