Klarna vs Clearpay on Shopify: which should a UK store offer?
How each one works for shoppers, what Shopify supports in the UK, what changed when the FCA began regulating buy now pay later on 15 July 2026, and how to decide for your store.
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Klarna and Clearpay side by side
Short answer: Klarna gives shoppers a few ways to pay later, from three instalments to paying 14 or 30 days after shipping. Clearpay splits an order into four instalments every 2 weeks. Both are interest-free, and both can charge late fees.
| Factor | Klarna | Clearpay |
|---|---|---|
| Product | Pay in 3 and Pay in 30 days | Pay in 4 instalments |
| When the shopper pays | Pay in 3: the first payment at order confirmation, then at 30 and 60 days. Pay in 30 days: 14 or 30 days after shipping, depending on the store. | Four instalments, due every 2 weeks. |
| Interest | Interest-free | No interest |
| Late fees for the shopper | Pay in 3: £5 on orders of £20 or more if unpaid 14 days after the due date, with at most one fee per instalment. For Pay in 30 days, check Klarna's current terms. | £6 per missed instalment, and a second £6 after 7 days on orders of £24 or more. Clearpay's terms cap total late fees at the lower of 25% of the order or £24, though some older pages show £36. |
| Who can use it | Klarna decides which options a shopper sees, based on factors such as store location and the shopper's order history. | Shoppers aged 18 or over who are permanent UK residents, excluding the Channel Islands. |
| On Shopify in the UK | Listed as a local payment method in Shopify Payments. | Not listed among the UK payment methods on Shopify's Shopify Payments page. |
| FCA lender status | Check the FCA Financial Services Register. | Listed by the FCA among lenders with temporary permission. |
From Klarna's Pay in 3 terms, Klarna's Pay in 30 days page, Clearpay's late fee page and how Clearpay works, plus the sources listed below, checked 13 October 2026. Providers change their terms, so confirm the current UK terms before you rely on a figure.
What Shopify supports in the UK
Short answer: Shopify's UK page for Shopify Payments lists Klarna as a local payment method and does not mention Clearpay. Check Settings, then Payments, in your own admin to see what your store can switch on.
- Klarna: listed as a local payment method for UK customers. Local payment methods are switched on in the Shopify Payments section and are shown according to the customer's location
- Clearpay: not mentioned on Shopify's page for UK Shopify Payments. You may be able to add it through another payment provider or an app, so check that provider's documentation and fees
- Express wallets: Apple Pay, Google Pay and Shop Pay are accelerated checkouts that switch on automatically with Shopify Payments
Each extra payment method adds a fee and a support process, so keep the list short. Our guide to Shopify fees explains how Shopify's own fees apply when you use Shopify Payments or another provider, and shows UK plan prices.
What changed on 15 July 2026
Short answer: The FCA began regulating deferred payment credit, which it says is often known as buy now pay later, on 15 July 2026. Lenders must be authorized or hold a temporary permission. Agreements made before that date stay unregulated.
- The regime applies where the lender and the seller of the goods are different businesses
- From 15 July 2026 a lender must be authorized for the relevant consumer credit activities, or hold a temporary permission
- Registration for the temporary permissions regime has closed, and the FCA lists the firms that hold one, including Clearpay
- Broking of these agreements is exempt from regulation
- Agreements entered into before regulation day are not covered
The FCA's page does not explain what the rules mean for how a merchant describes or advertises these products, so ask your provider for approved checkout and marketing wording, and take advice if you are unsure. This is not legal advice. Read the FCA's guide to regulating buy now pay later.
How to choose
Short answer: Start from your own numbers: basket size, margins, who your customers are and which options your payment setup supports. Then switch one on and measure it before adding another.
- Basket size and margin: work out the provider's fee as a share of your typical order, using the fees in your written agreement
- Setup: check which options your Shopify plan and payment provider allow, because that may decide the question
- Cash flow: ask each provider in writing when you are paid, how refunds are handled and what happens on cancellations
- Customers: look at your audience and how often they ask for pay-later options
- Support: decide who answers shopper questions about instalments and failed payments
Offering both gives shoppers more choice but adds fees, support and clutter at checkout. If you test, switch on one provider first, then compare conversion rate, average order value, refunds and net margin over the same period. Our guide to a good conversion rate shows how to measure it.
Before you switch one on
Short answer: Confirm the provider's status, get fees and payout timing in writing, use approved wording, and test the full checkout and refund flow on a phone.
Pre-launch checklist
- Check the provider on the FCA register and confirm it is authorized or holds a temporary permission
- Get the merchant fee, any monthly charge and the payout schedule in writing
- Ask for approved checkout and marketing wording before you add banners or messages
- Place a test order on a phone and complete the payment flow
- Test a full refund and a partial refund
- Update your returns and payment policy pages
- Decide who handles shopper questions and complaints
- Set a review date to compare results with your numbers from before
Frequently asked questions
Is Klarna or Clearpay better for a UK Shopify store?
Neither is better for every store, so choose by your basket size, payment setup and customers. Klarna offers Pay in 3 and Pay in 30 days, while Clearpay is a fixed four-instalment product. Klarna is listed in Shopify Payments for UK customers and Clearpay is not, so your payment setup may decide which one you can switch on.
Can I offer both Klarna and Clearpay?
Yes, many stores offer more than one, if your payment setup supports both. Each provider has its own agreement and fees, so compare the cost of each, keep checkout simple and measure results over the same period before you decide to keep both.
Is buy now pay later regulated in the UK?
Yes, the FCA began regulating deferred payment credit, often called buy now pay later, on 15 July 2026. Lenders must be authorized or hold a temporary permission, and the FCA lists lenders with temporary permission, including Clearpay. Agreements made before that date stay outside the regime.
Do Klarna and Clearpay charge late fees?
Yes, both can charge late fees on missed payments, and the terms differ. Clearpay's terms list £6 per missed instalment with a cap, and Klarna's Pay in 3 terms list £5 on orders of £20 or more after a grace period. Terms change, so check each provider's current UK terms.
Does Klarna work with Shopify Payments in the UK?
Yes, Shopify lists Klarna as a local payment method for UK customers. You switch it on in Settings, then Payments, under Shopify Payments. Shopify shows local payment methods based on the customer's location.
Is Clearpay available through Shopify Payments in the UK?
Shopify's UK payment methods page for Shopify Payments does not list Clearpay. You may be able to add it through another payment provider or an app. Check your Shopify admin and the provider's own documentation for your setup.
How much do merchants pay for Klarna or Clearpay?
Merchant fees are set in your agreement with each provider, so ask for them in writing. We do not publish figures because they depend on your business and can change. Ask about payout timing, refunds and any monthly charges as well as the percentage.
Will buy now pay later raise my conversion rate?
It can help some stores and not others, so test it on your own store. We do not quote conversion lifts because results depend on your products and customers. Compare conversion rate, average order value, refunds and net margin before and after you switch it on.
Sources
Checked on 13 October 2026. Providers and regulators update their terms, so confirm the current version before you decide. We build only on Shopify and do not offer credit or financial advice.
- FCA: regulating buy now pay later: start date, scope, temporary permissions and the register of lenders
- Shopify Help Center: Shopify Payments methods for the UK: Klarna as a local payment method, express wallets
- Klarna UK: Pay in 3 instalments terms and how Pay in 30 days works
- Clearpay UK: late fee help article and how Clearpay works
Not sure which pay-later option fits your UK store?
Book a free 30-minute call, or ask for a free store audit. We look at your basket sizes and payment setup, and tell you honestly what is worth switching on. Calls work in any timezone.
