Sezzle and Klarna are both “Buy Now, Pay Later” (BNPL) services, allowing users to make purchases and pay in installments. Sezzle divides payments into four interest-free installments, while Klarna offers various payment plans, including interest-free options and longer-term financing.
- Sezzle is a payment platform that allows users to pay for purchases in four interest-free installments. At the same time, Klarna is a payment platform that allows users to pay for purchases in installments or later with interest.
- Sezzle is designed for smaller purchases and has a lower purchase limit than Klarna, which is more suitable for larger purchases.
- Sezzle charges late fees for missed payments, while Klarna charges interest on payments made after the due date.
Sezzle vs Klarna
The difference between Sezzle and Klarna is that Sezzle offers the customer the only way to pay, whereas Klarna offers the customers more than one way to pay. It offers 3 ways customers can pay, including the Sezzle’s way and two other ways. This makes Klarna more convenient and versatile. Klarna also has a way more number of websites than Sezzle.
Sezzle is a company founded in 2016 and is a player of BPNL (Buy now pay later). It was earlier only online, but now a card has been launched, which can be added to apple pay or Google Pay for in-store payment. It works similarly to Paypal Pay 4.
Klarna is a company launched in 2005 which offers to Buy Now and pay later services. The different thing about it is that it not only offers the way of payment as Sezzle but has additional ways to make it more versatile.
|U.S., Canada, Austria, Belgium, France, Germany, Italy, Netherlands, Spain, and U.K. (Sezzle Virtual Card only available in U.S. and U.S. Territories)
|U.S., Great Britain, Sweden, Norway, Finland, Denmark, Germany, Austria, Netherlands, Belgium, and Switzerland
|Minimum Purchase Amount
|Varies by merchant
|Varies by merchant
|4 interest-free installments over 6 weeks
|Varies depending on the option chosen: 4 interest-free installments over 6 weeks, “Pay Later” with interest after 30 days, or “Slice It” with interest in monthly installments
|$10 late fee per missed payment
|Varies by region, late fees may be waived or capped depending on location
|No interest if payments are made on time
|0% – 19.99% APR, depending on the option chosen
|Sezzle Up – virtual card for online shopping, budgeting tools
|Shopping recommendations, loyalty program, in-store payment options
|Widely available, but not as extensive as Klarna
|Extensive network of partnered merchants
|Reports on-time payments to credit bureaus (may help build credit)
|Does not report to credit bureaus unless using “Slice It” option
|Generally positive, users appreciate ease of use and transparency
|Generally positive, users appreciate flexibility and variety of options
What is Sezzle?
Sezzle is a financial technology company that provides a “Buy Now, Pay Later” (BNPL) platform, allowing consumers to make purchases and split the total cost into interest-free installments.
Key Features of Sezzle
- Interest-Free Installments: Sezzle allows users to divide their purchase amount into four equal, interest-free payments. Customers pay the first installment at the time of purchase, and the remaining three payments are scheduled every two weeks.
- Credit Check-Free: Unlike traditional financing options, Sezzle doesn’t perform a traditional credit check. Instead, it assesses users based on their ability to make payments.
- Wide Merchant Network: Sezzle partners with various online retailers, providing consumers with the option to use Sezzle for payments across a diverse range of industries.
- Transparent Fees: Sezzle’s fees are transparent and disclosed upfront. Late fees may apply if a scheduled payment is missed, but there are no hidden charges.
- Quick and Easy Application: Users can sign up for Sezzle quickly, and the approval process is typically fast. Once approved, they can start using Sezzle for eligible purchases.
- Mobile App Integration: Sezzle offers a mobile app, enhancing the convenience of managing payments and tracking purchases on the go.
- Responsible Spending: Sezzle promotes responsible spending by encouraging users to spend within their means and offering financial education resources.
What is Klarna?
Klarna is a Swedish fintech company founded in 2005 that provides various online payment solutions and financial services. It has gained significant popularity as a “Buy Now, Pay Later” (BNPL) platform, offering consumers the flexibility to make purchases and pay for them in installments.
Key Features and Services
- Buy Now, Pay Later (BNPL): Klarna allows users to split their purchases into multiple installments, providing a convenient and interest-free way to spread the cost over time. This flexibility appeals to consumers seeking budget-friendly options.
- Online Shopping Integration: Klarna partners with a wide range of online retailers, seamlessly integrating its payment solutions into the checkout process. This makes it easy for users to choose Klarna as a payment option when making purchases on supported platforms.
- Interest-Free Options: In addition to traditional installment plans, Klarna offers interest-free financing for a specified period. This can be particularly attractive to consumers looking to defer payments without incurring additional costs.
- Klarna App: The Klarna app consolidates a user’s purchases, payment schedule, and available credit in one place. It also provides a smooth and user-friendly interface for managing transactions, tracking deliveries, and accessing exclusive deals.
- Virtual Card: Klarna issues a virtual card to users, enhancing their online shopping security. This card is linked to the Klarna app and can be used for purchases wherever Klarna is accepted.
- Pay Now and Financing Options: While Klarna is known for BNPL, it also offers traditional payment methods, allowing users to pay for their purchases immediately or choose longer-term financing options.
- Convenience: Klarna’s BNPL service provides consumers with the convenience of making purchases without paying the full amount upfront, making it an attractive option for those looking to manage their budget.
- Risk-Free Trials: Klarna’s payment structure enables users to try out products before committing to the full payment, promoting a risk-free shopping experience.
- Transparent Terms: Klarna emphasizes transparency in its terms, ensuring users understand the payment schedule and any associated fees, if applicable.
Main Differences Between Sezzle and Klarna
- Payment Structure:
- Sezzle: Divides payments into four equal, interest-free installments over six weeks.
- Klarna: Offers diverse payment options, including interest-free installment plans, traditional immediate payments, and longer-term financing.
- Sezzle: May charge late fees, but the service is generally interest-free.
- Klarna: Typically interest-free, but users may incur fees if they choose certain financing options or fail to meet payment deadlines.
- Number of Installments:
- Sezzle: Limits payments to four installments.
- Klarna: Provides flexibility with various installment plans, allowing users to choose terms that suit their preferences.
- Merchant Integration:
- Sezzle: Partners with a range of online merchants for seamless integration into the checkout process.
- Klarna: Has a broad network of partner merchants, offering users the option to use Klarna across a wide array of online platforms.
- Payment Duration:
- Sezzle: Requires payments over a six-week period.
- Klarna: Offers diverse payment durations, including immediate payment, short-term interest-free installments, and longer-term financing plans.
- App Features:
- Sezzle: Provides a user-friendly app for managing purchases and payments.
- Klarna: Offers a comprehensive app with features such as order tracking, exclusive deals, and a virtual card for enhanced security.
- Global Presence:
- Sezzle: Primarily focuses on the U.S. and Canada.
- Klarna: Has a more extensive global presence, serving customers in multiple countries.
Last Updated : 25 February, 2024
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Chara Yadav holds MBA in Finance. Her goal is to simplify finance-related topics. She has worked in finance for about 25 years. She has held multiple finance and banking classes for business schools and communities. Read more at her bio page.