In the rapidly changing world of e-commerce and digital payments, one thing has remained constant! Customers prefer instant, flexible and frictionless checkouts. Klarna has played a key role in shaping this expectation and, as a result, has become a global leader for BNPL. But as commerce grows, the need for diverse BNPL solutions that suit different markets and customers becomes stronger.
Are you an e-commerce platform, fintech entrepreneur, thinking of building a platform, then you might be asking yourself:
What Are The Best Klarna Alternatives in 2025?
Klarna is a leader, but not for everyone. Companies often look for alternatives for the following reasons:
1. Regional Limitations
Klarna is not available everywhere, and expanding into MENA, APAC or LATAM markets often requires more local BNPL partners.
2. Fees & Merchant Costs
Some merchants find that Klarna’s fees are higher than others, especially for high-volume or low-margin businesses.
3. Different User Demographics
BNPL apps targeting the needs of young, credit-building or blue-collar audiences may be more popular with them.
4. Better API Support
Founders and tech teams may want robust developer tools or more control over payment flows.
5. Scalability & Customization
Not every business wants a plug-and-play solution; some want customizable, product-first BNPL options.
Regardless of your reason, researching Klarna competitors isn’t just about finding alternatives. It’s about finding the best strategic partner to help drive sustainable growth.
Top 10 Best Klarna Alternatives & Competitors in 2025
Below are some of the best BNPL apps that meet and sometimes surpass Klarna in terms of features, flexibility, and global reach.
1. Afterpay
Afterpay is still one of the leading BNPL platforms among fashion, lifestyle and millennial audiences.
It splits the payment into four interest-free installments paid every other week.
Why Afterpay Is a Strong Klarna Alternative:
- Huge popularity across the US, UK, and Australia
- High approval for Gen Z shoppers
- Great for impulse purchases
- Upfront full payment received by the merchant
- Zero risk for merchants
If your business covers fast-moving retail, Afterpay can increase your conversions and cart value.
2. Affirm
Affirm offers flexible terms, from 4 interest-free payments to 36-month financing.
What sets Affirm apart from competitors is:
- No late fees
- Clear, transparent pricing
- Great for electronics, appliances, and travel
- Real-time fraud & risk checks
- Strong APIs & developer tools
Klarna is great, but Affirm wins for long-term financing and reliability when it comes to high-value purchases.
3. Sezzle
Sezzle attracts credit-conscious buyers. It allows four installments over six weeks and helps users build a credit score.
Why It’s Unique
- Credit reporting to bureaus
- High approval rates
- Very popular among Gen Z
- Fast onboarding of merchants
If your target audience is young and values financial health, then Sezzle is one of the best Klarna competitors for you.
4. Zip (Quadpay)
This platform splits payments into 4 installments that work for online and in-store purchases.
Key Benefits
- Virtual card for complete flexibility
- Strong omnichannel support
- Easy integration with Shopify, WooCommerce, and custom apps
- Custom promotional programs
Zip could surpass Klarna in customer reach and adaptability for brands with a hybrid retail model.
5. Splitit
Unlike traditional BNPL apps, Splitit does not provide loans, but uses the customer’s existing credit card limit.
Why Businesses Love It:
- No credit checks
- No interest.
- Lower abandonment rates
- Works globally
- Risk-free for merchants
If your audience is interested in transparency and no external loans, Splitit is a strong alternative to Klarna.
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6. Laybuy
Laybuy offers six installments a week and is very strong in the UK, New Zealand and Australia.
What Makes Laybuy Special:
- Users can choose their payment day
- Strong fraud reduction
- Great analytics dashboard
- Simple integration
If you are selling in the Southern Hemisphere, Laybuy may outperform Klarna in reach and performance.
7. Zilch
Zilch combines BNPL with cashback rewards. This is a combination that attracts customers who want flexibility with benefits.
Why Zilch Is Growing Fast:
- Virtual Mastercard
- Pay-in-4 or pay-in-full + cashback
- Budgeting tools
- Strong in UK and EU
This suits brands that focus on loyalty, repeat purchases, and long-term retention.
8. PayPal Pay Later
PayPal Pay Letter takes advantage of PayPal’s vast international trust and user base.
Why It’s a Top Competitor:
- No new onboarding for the user.
- Instant enablement for merchants
- Pay-in-4 and long-term installments
- Strong buyer protection
If you are already using PayPal Checkout, this is the easiest BNPL upgrade you can do.
9. Perpay
PerPay targets people with poor credit files, and they use paycheck-linked installments.
Why It’s Different:
- In-built marketplace
- Credit building
- Great for blue-collar buyers
- Higher repayment security
For electronics and essential goods, ParPay is great for conversion and payment compatibility.
10. Tabby
Tabby leads the BNPL revolution in the Middle East and North Africa.
Why Tabby is crucial for MENA markets:
- Arabic language support
- Wide regional acceptance
- Instant decisions
- Strong partnerships with UAE & Saudi retailers
If your business is entering the Middle East, Tabby is one of the best alternatives to Klarna.
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How to Choose The Right Klarna Alternative?
When considering any Klarna competitor, ask:
Where do your customers work or reside?
- What are your average cart values?
- Do you need fast integration or deep customization?
- How much risk do you want the BNPL provider to take?
What Kind of Shopper Journey Do You Want to Create?
A well-considered BNPL strategy will enhance:
- Conversion rates
- Customer retention
- Order value
- Brand trust
- Overall experience
The right BNPL partner does more than split payments; it elevates your entire product ecosystem.
Final Thoughts
The BNPL landscape in 2025 is rich, diverse and full of opportunities. Klarna is still a big player, but its competitors offer incredible flexibility and sometimes better prices. Choosing the right Klarna alternative is not just about payments! It’s about creating a checkout journey that your customers will love. Whether scaling quickly as a startup or optimizing conversions as an enterprise, what a BNPL partner chooses defines their growth.
FAQs: Questions & Answers
Q1. What is the best BNPL app like Klarna in 2025?
It depends on your business model.
- For global reach: Afterpay or Zip
- For high-ticket items: Affirm
- For credit building: Sezzle
- For MENA markets: Tabby
- For frictionless checkout: PayPal Pay Later
There is no "one best," only the best fit.
Q2. Are Klarna alternatives cheaper for merchants?
Some, yes. Apps like Splitit and Sizzle often have lower merchant fees or more flexible structures. But pricing depends on industry and scale.