Comparison · Updated September 28, 2026
Klarna vs Sezzle for merchants
Klarna
B
Klarna is a Swedish-founded, UK-parented digital bank and flexible payments provider that listed on the New York Stock Exchange in September 2025. Its full year 2025 results put it at $127.9 billion of gross merchandise volume, $3.5 billion of revenue, 118 million active consumers and 966,000 merchants. For a retailer it is not a merchant account — it is an additional payment method that sits alongside card acceptance, sold on the promise of higher conversion and larger baskets, and priced far above card interchange. Klarna publishes no US rate card, its dispute process runs on its own rules rather than the card networks', and it is defending a securities class action filed after its IPO.
Sezzle
B-
Sezzle is a Minneapolis buy-now-pay-later provider founded in 2016; Charlie Youakim, Paul Paradis and Killian Brackey are the co-founders named most consistently, though accounts of the full founding team differ. It began as a next-business-day ACH product and pivoted to instalments in 2017, listed on the Australian Securities Exchange on 30 July 2019, began trading on Nasdaq as SEZL on 17 August 2023 and left the ASX in January 2024. For the quarter ended 30 June 2026 it reported gross merchandise volume of $1.3 billion, up 37.9% year on year, total revenue of $149.7 million, up 51.7%, and net income of $40.8 million. For a merchant the bargain is the standard BNPL one but unusually cleanly stated: the shopper pays Sezzle a down payment, Sezzle pays you the full order value less your merchant rate, and Sezzle then carries both the fraud risk and the repayment risk for the six weeks that follow. What Sezzle does not do is tell you what that costs. There is no published merchant rate anywhere on its site — the fee is in the agreement you sign — and there are three separate ancillary charges most merchants only meet after signing.
VS
Overview
Both let a US retailer offer buy now, pay later, pay the merchant up front and carry the shopper's credit and fraud risk. Their standard US rates are close: Klarna's US pricing terms list 5.99% + $0.30 per transaction, and Sezzle's merchant agreement sets a standard 6.1% + 30¢, which either company can quote differently at approval. The bigger differences are elsewhere. Klarna reaches 120 million active consumers in 26 markets and plugs into Stripe, Adyen and other processors, and its Pay in 4 is interest-free for shoppers who pay on time. Sezzle serves the US and Canada, can charge shoppers a service fee on Pay in 4, adds a $15 monthly fee under $300 of volume, and signs merchants to a one-year agreement that renews automatically. Sezzle documents a typical three-business-day settlement and its merchant agreement sets no dispute fee. Klarna, graded B on Payment Review, suits most retailers better than Sezzle, graded B-.
Key Takeaways
- ✓Klarna reaches far more shoppers: 120 million active consumers and more than 1.2 million merchants at Q2 2026, against Sezzle's 3.2 million active consumers at 30 June 2026.
- ✓Standard US rates are close. Klarna's pricing terms list 5.99% + $0.30 and Sezzle's merchant agreement 6.1% + 30¢, so a $200 order costs $12.28 with Klarna and $12.50 with Sezzle before any negotiated rate.
- ✓Klarna's Pay in 4 is interest-free for shoppers who pay on time. Sezzle's can carry a service fee: its own example is $7.49 on a $300 purchase, a 45.0% APR.
- ✓Sezzle states when you get paid (one to seven business days, most commonly three) and sets no dispute fee in its merchant agreement. Klarna sets the payout schedule in each contract and charges $15 for each dispute decided against a direct-agreement merchant.
- ✓Sezzle's merchant agreement runs for one year and renews automatically unless either side gives 30 days' notice, and it adds a $15 fee in any month under $300 of volume. Klarna publishes no monthly or minimum fee.
Klarna
Klarna suits most US retailers, especially those already on Stripe, Adyen or another processor that offers it, those selling abroad, and those who want the largest pool of BNPL shoppers and a shopper-fee-free Pay in 4.
Sezzle
Sezzle suits US and Canadian online retailers that want a settlement time stated up front and no dispute fee in the merchant agreement, and that are on one of its many ecommerce plug-ins. They should be comfortable with its one-year auto-renewing agreement.
Overall Winner
🏆 Winner
Klarna
Bexpert grade
Runner-up
Sezzle
Why?
Klarna is the better fit for most US retailers adding buy now, pay later, which matches the site's grades (B against B-). Its standard rate is slightly lower, it has no minimum-volume fee, its Pay in 4 costs shoppers nothing when paid on time, and it reaches 120 million active consumers in 26 markets. Most merchants can switch it on through the processor they already use. Sezzle wins on two points: its merchant agreement sets no dispute fee where Klarna charges direct merchants $15 for each dispute they lose, and it states a settlement time (most commonly three business days) where Klarna leaves it to the contract. Sezzle also offers monthly plans of up to 48 months. For a US or Canadian online store that values those points and accepts a one-year auto-renewing agreement, Sezzle is a reasonable choice, and some merchants run both.
Feature by feature
Detailed Comparison
Filter Options
Merchant fees (US standard pricing, September 2026)
| Feature | Klarna | Sezzle |
|---|---|---|
| Standard transaction fee | 5.99% + $0.30 Winner | 6.1% + 30¢ |
| Klarna's figure comes from its pricing terms for merchants in the United States and Canada, a Klarna-hosted onboarding document dated 5 September 2023 and still served; it is the most recent version found, as Klarna publishes no current US rate page. The figure matches the Klarna rate on Stripe's current US price list (5.99% + 30¢), and Klarna calculates its percentage on the order total excluding sales tax. Sezzle's comes from section 5.2 of its merchant agreement (last updated 7 May 2026, effective 13 May 2026), which calls it the standard rate; it may vary by industry and risk, is confirmed by email at approval, and Sezzle's help centre says the rate depends on what you sell, how long you have been in business and other factors. Klarna's pricing terms form part of each merchant's contract, so its rate can also differ by agreement. On a $200 order the standard fees are $12.28 and $12.50. | ||
| Monthly or minimum fee | None in Klarna's pricing terms Winner | $15 in any month under $300 of order volume |
| Neither charges a sign-up or setup fee. Sezzle's agreement also allows an inactive-merchant fee of the greater of 10% of the balance or $1,000 a month when an account has had no volume and holds an undisbursed balance over a rolling 90 days. | ||
| Refund fee | Not disclosed | 2% + 30¢ if refunded from your card on file; nothing if from your Sezzle balance |
| Sezzle funds refunds from the merchant's Sezzle balance or refund reserve at no charge, and deducts them from the next payout. On any refund it keeps the original processing fee (merchant agreement s5.3). | ||
| Dispute fee | $15 per dispute decided against you ($30 above a 1.5% dispute rate) | None in the merchant agreement Winner |
| Klarna's figures apply to merchants with a direct Klarna agreement. Merchants who get Klarna through a processor such as Stripe are not charged by Klarna directly, but the processor may pass a fee on. Klarna's current dispute documentation says the fee is charged when a dispute is decided against the merchant, including when the merchant refunds after escalation, and not when the customer cancels or is found at fault. Some third-party chargeback guides say the fee is charged regardless of outcome, so confirm the term in your contract. The higher fee applies after three months above a 1.5% dispute rate with more than 100 orders. | ||
Standard transaction fee
Klarna
5.99% + $0.30
Winner
Sezzle
6.1% + 30¢
Klarna's figure comes from its pricing terms for merchants in the United States and Canada, a Klarna-hosted onboarding document dated 5 September 2023 and still served; it is the most recent version found, as Klarna publishes no current US rate page. The figure matches the Klarna rate on Stripe's current US price list (5.99% + 30¢), and Klarna calculates its percentage on the order total excluding sales tax. Sezzle's comes from section 5.2 of its merchant agreement (last updated 7 May 2026, effective 13 May 2026), which calls it the standard rate; it may vary by industry and risk, is confirmed by email at approval, and Sezzle's help centre says the rate depends on what you sell, how long you have been in business and other factors. Klarna's pricing terms form part of each merchant's contract, so its rate can also differ by agreement. On a $200 order the standard fees are $12.28 and $12.50.
Monthly or minimum fee
Klarna
None in Klarna's pricing terms
Winner
Sezzle
$15 in any month under $300 of order volume
Neither charges a sign-up or setup fee. Sezzle's agreement also allows an inactive-merchant fee of the greater of 10% of the balance or $1,000 a month when an account has had no volume and holds an undisbursed balance over a rolling 90 days.
Refund fee
Klarna
Not disclosed
Sezzle
2% + 30¢ if refunded from your card on file; nothing if from your Sezzle balance
Sezzle funds refunds from the merchant's Sezzle balance or refund reserve at no charge, and deducts them from the next payout. On any refund it keeps the original processing fee (merchant agreement s5.3).
Dispute fee
Klarna
$15 per dispute decided against you ($30 above a 1.5% dispute rate)
Sezzle
None in the merchant agreement
Winner
Klarna's figures apply to merchants with a direct Klarna agreement. Merchants who get Klarna through a processor such as Stripe are not charged by Klarna directly, but the processor may pass a fee on. Klarna's current dispute documentation says the fee is charged when a dispute is decided against the merchant, including when the merchant refunds after escalation, and not when the customer cancels or is found at fault. Some third-party chargeback guides say the fee is charged regardless of outcome, so confirm the term in your contract. The higher fee applies after three months above a 1.5% dispute rate with more than 100 orders.
Best For Your Business
Recommendations based on your business type
Online store already on Stripe or Adyen
Recommended
Klarna
Klarna can be switched on inside Stripe, Adyen and several other processors, and Stripe lists it at 5.99% + 30¢ in the US. Sezzle is not on Stripe's BNPL list and needs its own application and integration.
Retailer selling outside North America
Recommended
Klarna
Klarna offers one contract across 26 markets. Sezzle operates in the US and Canada only.
Small shop with low or seasonal BNPL volume
Recommended
Klarna
Sezzle charges $15 in any month under $300 of order volume, and its agreement allows a large inactive-account fee on an undisbursed balance. Klarna's pricing terms carry no monthly or minimum fee.
US online store that wants predictable settlement and no dispute fees
Recommended
Sezzle
Sezzle's agreement states a settlement window of one to seven business days, most commonly three, and the agreement sets no dispute fee. Klarna sets payouts per contract and charges $15 for each dispute decided against a direct-agreement merchant.
Higher-ticket goods sold on monthly plans
Both. Klarna offers 3 to 24 months at 0% to 35.99% APR. Sezzle's Pay Monthly runs 3 to 48 months, but its long-term financing is US-only and needs Sezzle's approval for your store. Compare the rate each quotes for interest-bearing and 0% plans.
Klarna: Best for 3 use cases
Sezzle: Best for 1 use case
Frequently Asked Questions
Common questions about this comparison
Klarna's pricing terms for US and Canadian merchants, dated September 2023 and still the latest Klarna publishes, list 5.99% of the order plus $0.30 per transaction and no monthly fee. Stripe charges the same 5.99% + 30¢ for Klarna in the US. Rates can differ by contract, and a direct Klarna agreement adds a $15 fee on each dispute decided against you.
Sezzle's merchant agreement sets a standard fee of 6.1% plus 30¢ per transaction, which can be higher depending on what you sell and your risk profile, and is confirmed at approval. It adds $15 in any month under $300 of order volume, and 2% plus 30¢ on refunds charged to a card on file. There is no setup fee.
The provider does. Both pay the merchant up front and carry the credit and fraud risk, so a missed instalment does not reduce your payout. You can still lose money on a shopper dispute, for example over an order that was not delivered, if the provider decides it against you.
Sezzle settles one to seven business days after capture, most commonly three, and can lengthen that for risk. Klarna sets the payout schedule and delay in each merchant contract; its own example is weekly payouts with a one-week delay.
Yes, both. In the US, each is added as a separate payment app, because Shopify Payments does not include either for US stores. Klarna through Shopify Payments is offered only to merchants in Europe.
Klarna's Pay in 4, Pay in 30 days and Pay in full are interest-free when paid on time. Sezzle's Pay in 4 can carry a service fee; its example is $7.49 on a $300 purchase. Both offer longer monthly plans that can charge interest; Klarna's US range and Sezzle's own examples top out at 35.99% APR.
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