Klarna vs Afterpay: Which is Better? (2024)

With Afterpay the 25% first payment can apply to varying situations depending on factors like: your history with Afterpay; how long you have been a customer; and the price of the item.

For example, if you are a long serving customer (more than a year) you don't have to pay the 25% payment up front immediately. You are given 13 days (reprieve ) until on the 14th day, your first 25% payment will start and will continue every fortnight thereafter in 4 payment stages. However, if you are a new customer, you will continue to pay the 25% payment upfront each time until you reach your anniversary date when you first joined and then you will not have to pay the 25% first. Goods above $600.00 in value and above, you will need to pay the 25% payment upfront first regardless whether you are a long serving customer or not.

In New Zealand, the NZ Govt wanted to control the ease of access to easy money spending, because many people were getting into financial debt and were paying excess late fees, as a result. The Govt initiated a 'cap' limit whereas any goods above $600.00 will require Afterpay to check if the person has the funds to purchase the goods, ensuring people don't overspend or above their own financial means. In my case, my Afterpay limit is $3,000.00 and although I had enough, money I was still refused because the goods (TV) was above 600.00. I later found out that although my Afterpay balance was showing I had enough, my bank on the other hand hadn't processed the transaction immediately; until later the day, hours after arriving home with a fully paid TV set.