The BNPL (Buy Now Pay Later) market has grown from $33 billion in 2019 to $180 billion in 2026. Two dominant players — European Klarna and American Afterpay (now part of Block, formerly Square). But comparing them directly is tricky: they grew up in different ecosystems and solve slightly different problems. Let’s compare them through the lens of business scenarios.
Websites: klarna.com | afterpay.com
Scenario 1: Fashion E-Commerce in Europe
Maria runs an online clothing store in Germany. Average order value: €120, returns: 30%.
Klarna: Home turf. Integration via Klarna Payments — 5 minutes, plugins for Shopify, WooCommerce, Magento. The key advantage is Pay Later (pay 30 days after delivery). For fashion with high returns, this is critical: the customer doesn’t pay until they’ve tried on the items.
Afterpay: Technically available in the EU, but merchant coverage is orders of magnitude smaller. Marketing support is weak. German customers simply don’t look for an Afterpay button at checkout.
Verdict: Klarna by a wide margin.
Scenario 2: Youth Streetwear in the US
Jake sells streetwear through Shopify. Audience: 18–25 years old, average order value $95.
Klarna: Present in the US since 2015, but trails Afterpay in brand recognition among younger audiences. The Klarna app in the US is more associated with a shopping aggregator than with installment payments.
Afterpay: Cult status among Gen Z. Shopify integration — free and out of the box. Afterpay actively co-markets merchants in its app (Shop Directory), driving free traffic. Usage frequency among 18–25-year-olds in the US is 2.7× higher for Afterpay than Klarna.
Verdict: Afterpay.
Scenario 3: Large Multichannel Retail
An electronics chain in the UK with 20 stores and online sales. Revenue £5M/year, average order value £350.
Klarna: Works both online and offline (Klarna Card, virtual card). Supports 3 payment options: Pay in 30 days, Pay in 3 installments, Financing (6–36 months). For orders above £100, the financing option is critical for conversion.
Afterpay: No offline solution. No long-term financing. Maximum 4 payments over 6 weeks. $1,500 user limit.
Verdict: Klarna. Afterpay simply wasn’t built for this scenario.
Scenario 4: Asia-Pacific Market
A startup in Australia launches a wellness brand. Target: Australia + New Zealand + Singapore.
Klarna: Not present in Australia or New Zealand. In Singapore — present since 2022, but minimal coverage.
Afterpay: Australian company (founded in Sydney). Home market — dominant position. 60% of Australians aged 18–35 have used Afterpay. In New Zealand — a solid second place. In Singapore — not available.
Verdict: Afterpay in Australia and New Zealand. In Singapore, neither works well — look at local alternatives (Atome, Hoolah).
Comparison Table
| Parameter | Klarna | Afterpay |
|---|---|---|
| Headquarters | Stockholm, Sweden | Sydney, Australia (owned by Block, USA) |
| Founded | 2005 | 2014 |
| Active Users | 150M | 24M |
| Merchants | 500,000+ | 200,000+ |
| Markets | 45 countries | 8 countries |
| Payment Types | Pay Later, Pay in 3, Financing (6–36 mo) | Pay in 4 (6 weeks) |
| Offline | Yes (Klarna Card) | No |
| User Limit | Individual, up to $10,000 | $1,500 |
| Shop Directory | Yes (Klarna App) | Yes (Afterpay App) |
| Affiliate Program | Yes | Yes (via Rakuten) |
| Merchant Fee | 3.99–5.99% + $0.30 | 4–6% + $0.30 |
| Merchant Payouts | Daily | Daily |
| API | RESTful, well-documented | RESTful, simpler |
| Integrations | Shopify, WooCommerce, Magento, BigCommerce, Salesforce, Adobe | Shopify, WooCommerce, Magento, BigCommerce, Wix, Squarespace |
| Soft Credit Check | Optional | Yes |
| Refunds | Automatic proportional refund | Automatic proportional refund |
Affiliate Programs: Klarna vs Afterpay
Klarna Partner Program
- Model: CPA for new Klarna App user or merchant
- Rate: $10–25 per app install; $50–200 per merchant
- Cookie: 30 days
- Payouts: monthly, $50 threshold
- Partner Portal: Partnerize (third-party platform)
- Plus: can promote both the consumer app and the merchant solution
- Minus: rates are lower than some competitors
Afterpay Partner Program (via Rakuten)
- Model: CPA for new users
- Rate: $5–20 per app install; merchant referrals — by request
- Cookie: 30 days
- Payouts: through Rakuten, standard terms
- Plus: simple integration through Rakuten
- Minus: consumer side only, merchant program is closed
Affiliate appeal: Klarna wins thanks to its dual model (users + merchants) and broader geography. Afterpay is stronger in the US and Australia, but its affiliate program is limited.
When to Choose What
Choose Klarna if:
- Your business/audience is in Europe (especially Germany, Sweden, Netherlands, UK)
- Average order value exceeds $200 (financing needed)
- You need an offline solution
- You want to promote an affiliate program with dual monetization
Choose Afterpay if:
- Your business/audience is in the US or Australia
- Your audience is under 30
- Average order value is up to $200
- Free marketing support through the Shop Directory matters
Use both if:
- You operate across multiple markets (Europe + US/Australia)
- You want to maximize checkout conversion
Final takeaway: Klarna and Afterpay are less competitors than geographically complementary services. Klarna dominates Europe, Afterpay dominates the US and Australia. For affiliates, the optimal strategy is to promote the service that matches your target audience’s geography.