Klarna vs Laybuy: Compare popular buy now pay later platforms

Buying now and paying later is booming in the UK but with so many options, which is the right one for you? We look at how Klarna and Laybuy stack up against each other.

As online shopping continues to grow in popularity, UK consumers are being offered an increasing number of ways to pay for their purchases. Rather than traditional forms of credit such as credit cards and loans, shoppers are turning to alternative forms of credit and financing, such as buy now pay later (BNPL) services.

Some of the most popular BNPL services available in the UK right now are Klarna (a fintech company originally from Sweden) and Laybuy (a payment service hailing from New Zealand).

If you’re thinking about using either of these services, we’ve put the payment platforms head-to-head to help you decide which could be the best fit for you.

Overview: Klarna and Laybuy

Klarna

woman shopping online

Klarna was founded in Sweden in 2005 and is currently the most downloaded BNPL app in the UK. It offers 3 different payment options:

  • Pay 30 days later. Receive an invoice for your full order total with up to 30 days to pay the full amount without any interest or fees.
  • Pay in 3 instalments. Spread the cost of your purchase equally over 3 months with no interest. Payments are due at the time of ordering, then 30 and 60 days later.
  • Financing. Split your payments into monthly instalments that you pay over time. (Requires a full credit check and charges interest of up to 18.9% APR.)

Popular retailers: Missguided, Lovehoney, JD Sports


Laybuy

woman shopping online

Laybuy was founded in New Zealand by a father and son duo, and is fast gaining traction in the UK. Laybuy offers 1 simple payment plan option and no interest.

  • Weekly instalments. Laybuy allows customers to split their online shopping total into 6 weekly payments.

Popular retailers: boohoo, Nasty Gal, I Saw It First


Round 1: Payment options

KlarnaLaybuy
Instalment options3 monthly payments6 weekly payments
Financing
More InfoMore Info

Klarna offers 3 different payment options for consumers, one of which acts like traditional credit and charges interest.

  1. Pay in 30 days: Pay your whole bill up to 30 days after purchase.
  2. Pay in 3 instalments: Split your total into 3 payments. The first due at time of purchasing, then 30 days and 60 days later.
  3. Financing: Apply for traditional financing, choose your repayment term and agree to possible interest charges (representative APR 18.9%, variable).

Laybuy offers just 1 simple payment plan.

  1. Pay in 6: Your online shopping total will be split into 6 equal payments, due a week apart.

The winner: It’s a tie.

Klarna offers more flexibility for differing financial needs, but Laybuy’s single payment option is much clearer and less likely to become confusing.

Round 2: Where can you shop?

When considering which BNPL service you may want to use, you’ll definitely need to take into account where can you actually use each service.

Currently, Klarna is partnered with more than 14,000 UK stores and services, whereas Laybuy is partnered with just over 1,200.

KlarnaLaybuy
Number of storesApproximately 14,000 storesApproximately 1,200 stores
Store listsSee store listSee store list

Klarna top providers

boohooboohoo
Exclusive

Exclusive: Extra 15% off

Ends

Exclusive
I Saw It FirstI Saw It First
Top deal!

30% off sitewide

Ends

Top deal!
PrettyLittleThingPrettyLittleThing
Sale!

Summer sale! Save up to 70% off everything!

Get deal
Sale!
Nasty GalNasty Gal
Top deal!

Get 40% off everything!

Top deal!

Laybuy top providers

MISSPAPMISSPAP
Summer!

Turning up the heat! Up to 70% off everything!

Ends

Get deal
Summer!
GlossyboxGlossybox

15% off all subscriptions

Ends

ESPAESPA
Welcome!

New customers: 10% off + Free Delivery

Welcome!
Nasty GalNasty Gal
Top deal!

Get 40% off everything!

Top deal!

The winner: Klarna.

Round 3: Fees

Both Klarna and Laybuy are free to use. However, there are a few instances in which you could end up paying for the service.

KlarnaLaybuy
Free to use
Late payment fee£0£6

Klarna fees

Klarna doesn’t charge fees or interest for its “Pay 30 days later” or “Pay in 3 instalments” options, and doesn’t charge any late fees either. However, if you choose Klarna’s “Financing” option you may be charged interest (representative APR 18.9%, variable).

Laybuy fees

Laybuy doesn’t charge any usage fees or interest on its weekly repayment structure. However, Laybuy does charge a late fee of £6 for any missed payments. After 7 full days of non-payment, Laybuy will charge another £6 fee. Total late fees are capped at £24. If you make all payments on time, Laybuy does not charge any fees.

The winner: Klarna, with no late fees or extra charges with 2 of the 3 payment options.

Overall winner: Is Klarna better than Laybuy?

Klarna and Laybuy offer very similar services. As a more established financial institution, Klarna has more partner stores, more payment options and may be better for you if you’re looking for flexibility. However, if it’s a single, easy-to-manage payment structure at certain retailers you’re after, then Laybuy could be your better option.

Compare: Klarna or Laybuy?

Name Product Automatic payments Early repayment option Payment term options Free to use Late payment fee More info
Klarna
Finder Award
Klarna
Yes
Yes
Pay later, Pay monthly, 3 equal payments
£0
Laybuy
Yes
Yes
6 equal weekly payments
£6
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