Afterpay vs Klarna
Business model, scale, and a side-by-side Litmus framework score — which model wins, and for whom.
Klarna wins on global reach; Afterpay wins on closed-loop integration inside Block.
At a glance
| Metric | Afterpay | Klarna |
|---|---|---|
| Revenue | ~$1.0B (BNPL gross profit within Block, est.) | $3.5B (FY2025, +25%) |
| Profit | Gross-profit positive within Block | $65M adj. operating profit; still net-loss |
| Active users | ~24M Active Consumers; 348,000+ Merchants | 118M active consumers |
| Employees | 1,500 (Dedicated) | ~3,500 |
| Founded | 2014 | 2005 |
| HQ | Melbourne, Australia (Part of Block, Inc.) | Stockholm, Sweden |
LLitmus Framework Score
Overall: Afterpay 91 · Klarna 84
Customer Segment
95
90
Value Proposition
92
88
Marketing Channel
96
85
Engagement
88
82
Income Source
93
84
Asset Validation
91
86
Core Operations
85
80
Strategic Alliance
97
83
Expense Validation
84
78
Afterpay leads 9 modules, Klarna leads 0. Overall edge: Afterpay.
Head to head
| Dimension | Afterpay | Klarna |
|---|---|---|
| Active consumers | ~24M | 150M+ |
| Revenue | ~$1.0B (BNPL GP in Block) | $2B+ |
| Consumer interest | None (Pay-in-4) | None on Pay-in-4 |
| Loan funding | Block balance sheet | External facilities |
| Ecosystem | Square + Cash App loop | Standalone shopping app |
FAQ
Is Afterpay or Klarna a better business?
Klarna wins on global reach; Afterpay wins on closed-loop integration inside Block. It depends on what you optimise for — see the module-by-module breakdown above.
What is the difference between Afterpay and Klarna's business model?
Afterpay operates in Fintech (Shop now. Pay later. Fixed interest-free.), while Klarna is Fintech (Smoooth shopping). Their revenue, scale and Litmus scores are compared in detail above.
Which is more profitable, Afterpay or Klarna?
Afterpay: Gross-profit positive within Block. Klarna: $65M adj. operating profit; still net-loss.