Klarna vs. Afterpay vs. Skeps

Klarna and Afterpay offer convenient consumer financing through their merchant partners, as well as their own apps. Merchants looking for a financing integration for their online stores have likely heard of both but may not be sure exactly what they each have to offer or how they differ. It is also helpful to know how they stack up to competitors in the industry like Skeps.

At a glance, it is easy to assume all three firms offer the same thing, but this couldn’t be farther from the truth. So, to give merchants a clearer picture of what fintech partners they have to choose from and what would work best for their situation, we will first compare Klarna vs. Afterpay, then introduce Skeps and how they differ.

A graphic with the words Klarna, afterpay, and skeps written on it representing a Klarna vs. afterpay vs. skeps comparison

In this comparison, we will cover:

  • The types of financing each firm offers
  • The terms of that financing
  • Unique elements of each firm

Types of Financing

Afterpay only offers pay-in-four financing, which is a type of instant installment financing that is broken up into four even payments. While it seems a bit narrow to focus solely on one type of consumer financing, pay-in-four is one of the most popular options for consumers at the point-of-sale, so Afterpay still offers a competitive platform.

Klarna is one of the most established POS financing firms that exists and one of the original pioneers of installment financing. As a result, they have been able to broaden their scope a bit more than Afterpay. Klarna offers pay-in-four, as well as multiple other instant installment loan lengths that allow consumers to break their purchases up into more payments, bringing the value of each payment down.

Skeps works with a network of lenders, which allows us to provide the widest array of financing options on the list. Skeps’ lender network can offer payment plans of various lengths, just like Klarna, as well as co-branded credit cards, consumer loans, and even leases in some circumstances.

Terms of Financing

Afterpay has the simplest terms, as they only offer one type of financing. As is typical with pay-in-four, Afterpay charges no interest and doesn’t perform credit checks. They also don’t report late payments to credit bureaus. However, they do charge late fees, with an initial $10 fee for late payments and another $7 fee if the payment isn’t made within a week.

Klarna’s terms vary based on the length of the financing term. For pay-in-four, they do not charge interest. They also offer a “pay in 30 days” option, which allows consumers to pay as they see fit over the course of 30 days, and this option also doesn’t charge interest. For term lengths longer than this, the interest rate varies based on the length, with options as low as 0%. They charge a $7 late fee for payments over ten days overdue, and they perform a soft credit check.

Skeps’ terms vary the most when comparing Klarna vs. Afterpay due to utilizing many different lending partners. There are no-interest short-term options available, just as there are with Klarna and Afterpay, and beyond that, terms vary based on the term length, type of financing, lender utilized, and the merchant through which a purchase is made. All credit checks are soft checks, and consumers are presented with terms before financing.

Unique Elements of Klarna vs. Afterpay vs. Skeps

Each of these firms have “X-factors” that don’t compare evenly with things that the other firms offer but are worth mentioning when discussing the value they bring to the table. To give a more comprehensive view of each partner, we will wrap up this comparison with each of these firms’ X-factors.


Klarna’s unique offering is its Klarna card. This card costs $5 monthly and allows consumers no interest financing options through the card. It is not a credit card but rather a virtual card on which users can utilize their pay-in-four financing while earning rewards for doing so.


Afterpay’s X-factor is their central focus on pay-in-four, allowing them never to run credit checks or charge interest. Since they only focus on this one financing offer, they are the go-to option for those looking only to offer pay-in-four.


The unique advantage of Skeps as a fintech partner for a merchant is our wide network of lenders, providing a level of versatility that no other partner can offer. This ensures that every consumer has a financing option that works for them, including branded credit cards that encourage repeat business with the same merchant. For those looking to cast the widest net, Skeps is a perfect choice.

Offer Maximum Flexibility With Skeps

Skeps offers a comprehensive, end-to-end consumer financing platform that helps businesses modernize their entire payment process. Working with an entire network of established lenders, we go above and beyond one-click payment, also offering a one-click application process for several different types of consumer financing, including:

  • Installment financing payment plans
  • Co-branded credit cards
  • Consumer loans and leases

If you’re looking to partner with a forward-thinking fintech company that will keep consumers' eyes on the purchase while offering best-in-class financing, Skeps is the perfect fit.

Do you have more questions about Klarna vs. Afterpay vs. Skeps? Request a demo today or email us at support@skeps.com.

Swati Bucha Swati Bucha

Klarna and Afterpay offer convenient consumer financing through their merchant partners, as well as ...


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