Buy now pay later (BNPL) services have quickly become a common feature at e-commerce checkout, with Klarna and Affirm leading the way. Both fintech companies give consumers the ability to split a large purchase into installments rather than pay the full amount upfront. While this payment method is appealing for everything from Amazon to in-store retailers, there are important differences in repayment terms, fees, and credit requirements.

For consumers exploring ways to finance their purchases, understanding Klarna vs Affirm is essential. Let’s explore the key differences and then look at some leading alternatives.

How Klarna Works

Klarna is one of the biggest names in the buy now pay later space, with millions of users worldwide and partnerships with thousands of retailers. Its most popular feature is the “pay in 4” plan, which lets shoppers split a purchase into four equal, interest-free installments paid every biweekly period. This structure is especially appealing for short-term expenses and smaller ticket items, making it a go-to option for clothing, electronics, and other everyday online purchases. Consumers can use Klarna at participating websites or through the Klarna app, which also offers a virtual card and Visa debit card functionality for more flexibility at checkout.

Beyond short-term payment plans, Klarna also provides longer-term installment loans for larger purchases. These plans can extend repayment across several months, but unlike “pay in 4,” they may come with interest rates that vary depending on the borrower’s creditworthiness and the selected repayment terms. In some cases, a down payment is required upfront before financing begins. While Klarna gives shoppers a variety of payment options, missed or late payments can trigger fees and may be reported to credit bureaus, potentially affecting a consumer’s credit history.

Key Features of Klarna:

• Pay in 4: Interest-free payments split into biweekly installments
  
• Pay Later options: Delay due dates or pay the full amount in 30 days
  
• Pay Over Time: Monthly payments with interest for larger purchases
  
• Virtual card and Visa debit card functionality through the Klarna app
  
• Wide partnerships across Shopify, ecommerce, and in-store checkout
  

While Klarna offers flexible payment options, it does report to credit bureaus, meaning missed payments can impact a consumer’s credit history. Some Klarna offers also include promotional interest-free installments, though availability may depend on the retailer.

How Affirm Works

Unlike providers that focus on short-term “pay in 4” plans, Affirm specializes in installment loans with fixed monthly payments. At checkout, borrowers are shown the total repayment cost upfront, including any interest rates, so they know exactly what they’ll owe from the start. Affirm also sets itself apart by not charging late fees, though missed payments can still impact a borrower’s credit score.

This structure makes Affirm a popular choice for larger purchases like appliances, furniture, and travel. With major partnerships through Amazon, Walmart, and various airlines, consumers can spread the cost of expensive items over longer periods. However, because interest rates are tied to creditworthiness, some loans may carry higher costs compared to true interest-free installments.

Key Features of Affirm:

• Installment payments with predictable monthly payments
  
• Affirm card and Affirm app for easier checkout online and in-store
  
• Integration with major retailers like Amazon, Apple Pay, and Walmart Checkout
  
• Soft credit checks to evaluate creditworthiness without affecting borrower credit score
  
• No late fees, though late payments and missed payments can still hurt overall credit history
  

Affirm offers more predictable financing options compared to Klarna, but interest rates can be higher for borrowers with lower creditworthiness.  

Klarna vs Affirm: Key Differences

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Top Alternatives to Klarna and Affirm

While Klarna and Affirm dominate the general retail BNPL market, they’re primarily designed for retail shopping and ecommerce checkout. For other types of financing where consumers face larger purchases or have specific needs, these leading alternatives are worth considering. 

Cherry

Unlike retail-focused BNPL services or medical credit cards, Cherry is purpose-built for healthcare and wellness. Patients can finance everything from smaller ticket items like Botox and fillers to larger purchases like plastic surgery procedures. Loan amounts go as high as $50,000 and terms as long as 60 months.

Flexible payment options, including interest-free installments and long-term monthly payments, make it easier for patients to move forward with care. Plus, Cherry uses a soft credit check — not a hard inquiry — so applying won’t impact a patient’s credit score.

For providers, Cherry isn’t just another payment method. Practices can save 50% or more on merchant fees compared to other providers while offering financing options tailored to their specialty. What’s more, financing is exclusive to the practice where the patient applies.

By integrating directly at checkout with simple tools and API support, Cherry reduces friction, increases treatment acceptance, and provides functionality designed specifically for health and wellness practices.

Why use Cherry?

• Loan amounts up to $50,000
  
• 60-second application and instant approval decision
  
• Options for interest-free pay-in-4 and true 0% APR for qualified borrowers
  
• Soft credit check that doesn’t affect credit score
  
• Provider-specific funding and 50% lower merchant fees on average
  

Built specifically for healthcare and wellness practices like plastic surgery,medspa, dental, and veterinary care.

CareCredit

CareCredit is a long-standing name in medical financing and works more like a credit card than a BNPL service. Patients can use CareCredit across a large network of providers, with credit lines based on approval and extended financing options of up to 60 months for larger purchases. Promotional interest-free installments are available for 6, 12, 18, or 24 months, but if the balance isn’t paid in full during that period, deferred interest is applied — often at high interest rates.

For providers, CareCredit offers strong brand recognition and wide acceptance. However, it requires a hard credit check for approval and may charge higher merchant fees. Patients must also open and manage a dedicated card account, which can create friction at checkout.

Why use CareCredit?

• Widely accepted across healthcare providers
  
• Promotional interest-free installments available
  
• Established brand with longstanding provider partnerships
  
• Functions like a credit card for medical purchases

Afterpay

Afterpay is best known for its “pay in 4” model — four interest-free payments across six weeks. Loan amounts vary by user, but they’re generally capped at around $2,000, making Afterpay a solution for smaller purchase amounts rather than major purchases. Afterpay does charge late fees for missed payments, which can add cost for consumers. Its strength lies in retail ecommerce and in-store checkout.

Why use Afterpay?

• Simple “pay in 4” model
  
• Widely available across online and in-store retailers
  
• Interest-free when payments are made on time
  
• Fast approval at checkout
  

PayPal Pay Later

PayPal’s pay later services include both a “pay in 4” interest-free payments option and longer installment loans for larger purchases. Loan amounts generally range up to $10,000 with repayment terms up to 24 months. While widely integrated into ecommerce checkout, PayPal financing isn’t tailored to healthcare and comes with standard service fees or interest rates on longer-term plans.

Why use PayPal?

• Trusted fintech lender with broad adoption
  
• Pay in 4 short-term, interest-free option
  
• Installment loans up to $10,000
  
• Integrated into most ecommerce checkout flows
  
• Accessible with a PayPal account and linked debit card or Visa

Scratchpay

Scratchpay was originally built with veterinarians in mind, but it’s now available to finance other types of care up to $10,000. Repayment plans can stretch to 36 months, and because the application uses only a soft credit check, people can see if they qualify without risking their credit score.

One drawback of Scratchpay is that some plans come with deferred interest, meaning if the full amount isn’t paid off within the promotional period, borrowers may owe retroactive interest at high rates. Providers may also face higher merchant fees compared to other providers, and Scratchpay’s strongest presence is in veterinary care rather than broader health and wellness.

Why use Scratchpay?

• Loan amounts up to $10,000
  
• Terms up to 36 months
  
• No credit card required
  
• Soft credit checks for quick approvals
  
• Strong option for veterinary practices

Sunbit

‍Sunbit specializes in point-of-sale financing for everyday needs like auto repair, dental, and other service-based expenses. It approves a high number of applicants with a quick soft credit check, offering loan amounts up to $20,000. Most plans range from 3 to 12 months, though some providers can extend terms up to 72 months. While Sunbit advertises promotional interest-free installments, these are typically deferred interest offers — meaning the balance must be paid in full during the promo period to avoid retroactive interest.

Why use Sunbit?

• High approval rate with soft credit checks
  
• Loan amounts from up to $20,000
  
• Terms of 3–12 months, with some up to 72 months
  
• Promotional period uses deferred interest
  
• No late or penalty fees

Final Thoughts on Klarna vs Affirm

Klarna is often the better choice for smaller, everyday purchases thanks to its short-term pay in 4 and pay later options, which work well for shoppers who want quick, interest-free installments. 

Affirm, on the other hand, is typically a stronger fit for larger purchases that require longer repayment, since it offers fixed monthly payments and no late fees, though interest often applies. Both BNPL providers are convenient at retail checkout, but they aren’t built to handle bigger financial needs or specialized expenses.

For higher-cost purchases — especially medical and wellness treatments — consumers often look for more predictable financing. That’s where alternatives come in, with Cherry standing out as a trusted solution backed by more than 40,000 providers nationwide. With true 0% APR options, practice-specific financing, no deferred interest traps, and merchant fees 50% lower on average, Cherry can help you enhance both cash flow and treatment acceptance without the risk if a patient defaults. Want to find out more? Claim your complimentary demo today.