Affirm vs Klarna
Business model, scale, and a side-by-side Litmus framework score — which model wins, and for whom.
Affirm wins for transparent, longer-term US financing; Klarna wins on global scale and short-term "Pay in 4" ubiquity.
At a glance
| Metric | Affirm | Klarna |
|---|---|---|
| Revenue | $3.2B (FY2025) | $3.5B (FY2025, +25%); $1.0B in Q1 2026 (+44% YoY) |
| Profit | Operating income positive (FQ4 FY25) | $65M adj. operating profit (FY2025); FY2025 net loss widened to $294M; Q1 2026 net income turned positive at $1M |
| Active users | 26.8M active consumers (FQ3 FY26) | 119M active consumers (Q1 2026, +21% YoY) |
| Employees | ~2,206 | ~2,831 (FY2025 year-end); down 49% since 2022 |
| Founded | 2012 | 2005 |
| HQ | San Francisco, USA | Stockholm, Sweden |
LLitmus Framework Score
Overall: Affirm 84 · Klarna 84
Customer Segment
86
90
Value Proposition
88
88
Marketing Channel
82
85
Engagement
82
82
Income Source
84
84
Asset Validation
84
86
Core Operations
82
80
Strategic Alliance
90
83
Expense Validation
78
78
Affirm leads 2 modules, Klarna leads 3. Overall edge: Tie.
Head to head
| Dimension | Affirm | Klarna |
|---|---|---|
| Active users | 23M active consumers | ~119M users |
| Geographic reach | US-centric (UK, Canada live) | ~30 markets globally |
| Core model | Balanced: ~45% merchant fees, ~40% interest | Mostly short-term Pay-in-4, thin interest income |
| Late fees | Zero late fees by design | Charges late fees in some markets |
| Profitability | First operating profit FQ4 FY25 | Re-listed publicly in 2025 |
FAQ
Is Affirm or Klarna a better business?
Affirm wins for transparent, longer-term US financing; Klarna wins on global scale and short-term "Pay in 4" ubiquity. It depends on what you optimise for — see the module-by-module breakdown above.
What is the difference between Affirm and Klarna's business model?
Affirm operates in Fintech (Buy now, pay later. No hidden fees.), while Klarna is Fintech (Smoooth shopping). Their revenue, scale and Litmus scores are compared in detail above.
Which is more profitable, Affirm or Klarna?
Affirm: Operating income positive (FQ4 FY25). Klarna: $65M adj. operating profit (FY2025); FY2025 net loss widened to $294M; Q1 2026 net income turned positive at $1M.