How they work
With both, a purchase is split into four interest free payments: the first when you buy and the rest every two weeks, taken from your linked debit or credit card. You can pay early at any time in the app.
Afterpay works online and in store at retailers that accept it, and through its card in your phone's wallet. Klarna works with retailers that accept it and, through its app and card, at many that don't.
Signing up
Both need you to be 18 or over, live in Australia, and have a mobile number, email address and a card to pay with. Since BNPL became regulated credit, both check your circumstances, and may check your credit report, before approving you. Your limit is set by the provider and can change with each purchase.
What to compare
The comparison shows each provider's current figures, read from its own website.
- Late fees, and the most you can be charged for each purchase.
- Spending limits, and how quickly they grow as you pay on time.
- Any account or monthly fees.
- Other plans, such as paying in full later or longer plans for bigger purchases, and what they cost.
- Which stores you shop at accept each one.
Pros
- No interest on pay in 4 plans, and nothing to pay beyond the price if every payment is on time.
- Quick to use at checkout once you're set up.
- Payments are spread over six weeks, which can help with a larger purchase.
Cons
- Late fees add up if you miss payments, especially across several purchases.
- It's easy to lose track of how much you owe across plans and providers.
- If you return something, it can take time for the refund to show in your plan, so keep paying until it does.
BNPL is regulated credit
Since 10 June 2025, buy now pay later providers need an Australian credit licence. They must check that a plan suits you before approving it, offer help if you're in hardship, and belong to AFCA, the free complaints service. Your BNPL accounts and repayments can also appear on your credit report.