Apps Like Klarna: Flexible Payment Options and How to Build One

The leading apps like Klarna in the US are Affirm, Afterpay, Sezzle, Zip (formerly Quadpay), PayPal Pay in 4, Splitit and Perpay. Each lets you split a purchase into smaller payments, but they differ on interest, repayment length, credit checks and which stores accept them. Afterpay and Sezzle are closest for short interest free plans, Affirm for larger purchases over several months, and Splitit for people who want to use an existing credit card.

Below we compare the main Klarna alternatives, explain how to pick one, and set out the steps for businesses thinking about building a buy now, pay later (BNPL) app of their own.

How Klarna works

Klarna lets shoppers pay at checkout with participating stores, or anywhere through its app and card, and then repay over time. Its main options are four interest free installments, paying the full amount later, and longer financing that may carry interest. The merchant is paid up front, and the shopper repays Klarna on the agreed schedule.

People look for alternatives when their favorite store uses a different provider, when they want a longer interest free term, when they are not approved for the amount they need, or when they prefer not to open another account.

Apps like Klarna at a glance

Affirm

Affirm is the strongest alternative for bigger purchases. It offers short interest free plans and monthly installments over longer periods, and shows the total cost before you commit. Longer plans may carry interest based on your credit profile. Affirm has made not charging late fees a core part of its brand.

Afterpay

Afterpay splits purchases into four payments over six weeks with no interest. Instead, it charges late fees if a payment is missed. It has broad acceptance in fashion and beauty retail and is now part of Block, the company behind Cash App.

Sezzle

Sezzle also offers four interest free payments and lets you reschedule a payment a limited number of times. It has paid subscription tiers with added features. It suits smaller purchases where a six week window is comfortable.

Zip

Zip, which absorbed the Quadpay brand in the US, splits purchases into four payments and provides a virtual card so you can use it at many stores that do not offer Zip at checkout. Installment fees may apply, so check before you confirm.

PayPal Pay in 4

PayPal's Pay in 4 offers four interest free payments on eligible purchases, managed in the PayPal app you may already use. PayPal also offers PayPal Credit, a revolving credit line with promotional financing on some purchases, which works more like a credit card than a BNPL plan.

Splitit

Splitit uses the available credit on a card you already have, so there is no new loan application. The full purchase amount is usually held on your card at the start, which reduces available credit until the installments are paid. It is less widely available than the larger providers.

Perpay

Perpay works differently. You shop from its marketplace and repay through automatic deductions from your paycheck. It reports payments to credit bureaus on some plans, which appeals to people trying to build credit. Spending limits start low, and prices on the marketplace should be compared with other retailers.

How to choose an app like Klarna

• Check where you shop. The best app is the one your regular stores accept, or one with a virtual card that works almost anywhere.
• Match the term to the purchase. Use short plans for small items. Be careful with long plans that charge interest.
• Read the late fee policy. Interest free plans often rely on late fees.
• Understand credit reporting. More providers now report BNPL payments. That can help or hurt your credit file.
• Keep plans to a minimum. Track every due date in one place and avoid overlapping plans across several apps.

How to build an app like Klarna

For businesses, the bigger question is often whether to build a BNPL product. Here is a practical path.

1. Understand the market

Study why shoppers use BNPL in your category and which providers your target merchants already use. A new product needs a clear reason to exist: a niche merchant segment, a region where established providers are weak, longer terms for a specific category, or a loyalty angle.

2. Choose a business model

You can lend from your own balance sheet, partner with a bank that issues the loans, or offer merchant funded installments where the store carries the cost. Each model changes your licensing needs, your risk and your revenue.

3. Plan the features

• Fast signup with identity verification.
• Instant credit decisions at checkout.
• A clear repayment schedule with the total cost shown before confirmation.
• Automatic payments with reminders and an easy way to pay early.
• A merchant portal for orders, refunds and settlement reports.
• Plugins or APIs for the ecommerce platforms your merchants use.
• An admin console for credit rules, collections and support.

4. Pick the technology

A cross platform framework such as React Native or Flutter lets you ship iOS and Android from one codebase, and a web checkout widget is usually needed from day one. The back end needs a reliable ledger, a decision engine for credit rules, and integrations with payment processors, credit data providers and banking partners. Cloud hosting makes it easier to scale as transaction volume grows.

5. Build in security and compliance

Consumer credit in the US is regulated at federal and state level, and the treatment of BNPL has shifted over the past few years. Bring in legal counsel early. On the technical side, keep card data out of your systems through a processor that meets the PCI Security Standards, encrypt sensitive data, and log every balance change.

6. Test thoroughly

Test the unhappy paths as hard as the happy ones: declined cards, partial refunds, returns after the second installment, duplicate taps and failed automatic payments. These cases cause most support tickets and most compliance risk.

7. Launch with merchants

A BNPL product grows through merchants, so launch with a small group of stores in one category, measure conversion and repayment, and expand once the numbers hold.

Who can build an app like Klarna?

Many fintech products combine these, with an external team building the first version and an in house team taking over as the product matures.

If you are adding BNPL to a store, our payment integration team can connect providers to your checkout, as we did for the EGO Sustainable Shopify store with Tabby and Tamara. If you are building your own product, our mobile app development team works on fintech projects, and a checkout teardown is a good first step for retailers in retail and ecommerce.