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Klarna Review

what is klarna reviews

Sheridan Grant

Sheridan is a writer from Hamilton, Ontario. She has a passion for writing about what she loves and learning new things along the way. Her topics of expertise include skincare and beauty, home decor, and DIYing.

Table of Contents

About Klarna

Klarna Review

Have you ever fallen in love with a product, whether it was a piece of furniture, makeup, or device, only to discover that the price was a little more than you were looking to spend at that moment? 

Designed to make shopping experiences smooth and simple, Klarna offers users the ability to buy what they love now and pay for it later . There are three ways to use the benefits this brand has to offer: the app, browser extension, or credit card.

Offering a convenient and accessible way to shop, Klarna has amassed an impressive following of 529k on Instagram and 196k likes on Facebook. It has also been featured on popular media outlets like Forbes Advisor and GQ Magazine .

Interested in finding out more about all the different ways you can finance your purchases? Stay tuned to my Klarna review. I’ll be your guide through the brand, its methods, how it works, and the different perks to help you decide if it’s worth the try.

Overview of Klarna

Klarna Review

Klarna Bank AB, known as Klarna , is a Swedish company that provides financing services such as payments for online and in-person purchases, direct payments, and post-purchase payments. 

The brand was launched in 2005 by Sebastian Siemiatkowski, Niklas Adalberth, and Victor Jacobsson, who had a vision for “ making online payments easier and safer, both for consumers and retailers .” 

Today, the company is based in Columbus, Ohio, with offices in New York City and worldwide availability. It boasts 147 million active customers and 2 million daily purchases , demonstrating that it is a trusted payment platform .

While it began as a browser extension for certain brands, Klarna is now also available as a credit card and app, making every purchase simpler and streamlined. But we’ll get into those details later.

Now that we know a little more about the brand and its origins, my Klarna review will delve into some of the key highlights to keep in mind.

  • Buy now, pay later with Klarna payment plans
  • Available as a browser extension, app, or credit card
  • It can be used at any store, in person or online
  • Multiple different payment plans available
  • Extra perks like order tracking and notifications of in-stock items
  • No interest
  • Hassle-free returns
  • Rewards program
  • Available worldwide
  • For users 18+

Klarna Review

Klarna offers one simple thing: an easy way to finance your purchases, interest-free . But, there are a number of different ways to shop to suit your specific needs, including an app, credit card, and browser extension. 

Below in this Klarna review, I’ll spill the beans on how all the different methods work, what perks they offer, and what may be the best option for you.

Klarna App Review

Klarna App Review

The Klarna App makes shopping easy. When you’re looking to purchase a few items online, you can split your purchase into 4 interest-free payments .

Here’s an example: if your purchase costs $200, you will pay $50 at checkout. The three remaining $50 payments would each be billed to your debit or credit card, depending on the option you chose, every two weeks until you have paid the complete $200.

Essentially, users can log into the app, browse for brands and products they like in the Klarna stores section, and add them to their cart. On top of that, the app will alert you of price drops, discounts , and even when items are back in stock.

On top of that, the Klarna app will take note of what you’re interested in and begin developing a list of curated recommendations , so you’ll always find pieces you love. 

The Klarna app also helps you get more value from every dollar you spend. With the rewards program, you can earn points and gain access to exclusive deals to save on your favorite brands.

Plus, you’ll get a $5 welcome reward as soon as you complete your first purchase as a member. After that, with every dollar you spend, you’ll earn points that you’ll be able to redeem for discounts and products.

You can also use the app to track orders so you can keep all the important info in one place. And if you need to make a return? No problem–simply log into the app, click “report a return,” and your payment will be halted and refunded.

The best part of the Klarna App ? It’s completely free to use ! You can break up your payments, find ways to save, and organize your purchases, all at no cost to you!

How Does Klarna Work?

Klarna Review

With all that being said, you may still be wondering, “ how does Klarna work? ” The “buy now, pay later” motto is appealing, but it helps to know what you’re signing up for.

Essentially, you can pay later in 4 interest-free payments across all Klarna stores (brand partnerships) using the app. This means that your purchase will be split up into three smaller payments across six weeks without any interest or damage to your credit .

You can scroll through your favorite shops like Sephora, Adidas, and H&M. Alternatively, you can browse through different sections, such as home, makeup, or clothing.

But Klarna offers more than just an app! There is also a browser extension that allows you to do the same thing. You can either download it onto your computer/browser or click the “checkout with Klarna” button at participating stores.

This way, you don’t just have to browse through the list of Klarna stores, but you’ll also be able to “pay in 4” at any online store . Plus, you can still log in and keep track of your payments and purchases in the app.

While Klarna is an alternative to credit, it also offers a credit card. Essentially, you can shop anywhere Visa is accepted–online, in-store, at home, or abroad –regardless of whether a retailer offers Klarna. 

You can add the card to your Apple Pay and Google Pay in order to make contactless payments in-store. Each card has a specific payment plan to help you keep track of your expenses. Interested in the Klarna card? Join the waitlist here .

There are also different financing options available so you can make larger purchases. Whether you’d like to pay sooner or later, organizing your payments is easy. Here are the options:

  • Pay in 4: pay four equal installments, due every two weeks, with no interest
  • Pay in 30: pay nothing for 30 days, then pay the entire balance with no interest
  • Financing: pay with a loan for up to 36 months with interest rates between 0%-24.99%

Klarna does not approve 100% of all orders in order to reinforce responsible, ethical, and sensible spending habits . It’s also worth noting that while there is no interest, fees may accrue if you do not make your payments on time.

Here are a few things to keep in mind about how Klarna works:

  • With the pay in 4 option, Klarna runs a soft credit check which does not affect your credit
  • With financing options, Klarna may run a hard credit check which will be reported to the credit bureaus
  • There is never any interest if you pay in 4
  • You may be charged a late fee of up to $7 if you miss a payment
  • It can be used online or in-store

Overall, Klarna is quite simple in terms of operations and payments. The three different methods ensure there’s something that is convenient and works with your personal needs.

Who Is Klarna For? 

Klarna Review

If you’ve ever fallen in love with a piece but not the price, Klarna makes it easy to set up a payment plan that works with your budget but still allows you to purchase items you love. It makes shopping easy and flexible, helping you develop sensible spending habits and feel good about what you buy.

Contrary to what you might think, Klarna can also be used for those large in-store purchases, too. So if you want to purchase something and be able to use it right away, you can use your Klarna credit card! 

In other words, you’ll be able to break up the payment and experience the joy of having the product immediately. 

Also, Klarna is ideal if you’re waiting for payday to purchase something. You can simply buy it now, set up a payment plan, and then pay in full once you receive your funds!

Klarna Reviews: What Do Customers Think?

Klarna Review

So far, we’ve covered a lot of ground, detailing Klarna’s financing methods, how they work, and how they can benefit you. The brand boasts an impressive following and a vast number of users, not to mention the fact that it’s available worldwide at virtually every and any store.

But is it really worth all the hype? For this Klarna review, I turned to what its users have to say to find out. So, we sourced comments from Trustpilot, NerdWallet, and Better Business Bureau.

Starting off strong, Klarna earns an impressive rating of 4.4/5 stars out of a whopping 148,272 reviews on Trustpilot. One customer shares that the company is a great option around the holidays , helping them make good purchasing decisions and buy their loved ones a few special presents:

“Klarna has been there for me when I’m tight on money during Christmas. Words can’t express how thankful I am especially being a single parent.”

Another shopper notes that Klarna helped with their stress levels , and they also admired that it was easy to use anywhere , as well as convenient and accommodating :

“When there’s a problem or just simple questions it gets handled quickly. I recommend everyone to take full advantage of this gift we were blessed with because the 4 payments gives more than enough time to definitely get it paid with smaller payment I know my stress level went down!”

Klarna helped another customer through hard times, ensuring their credit wouldn’t be impacted, and they could have access to things they needed:

“Klarna understood that I’m having a financial hardship due to medical reasons. My agent was very caring and understanding. Quickly found the best options for me to ensure I dont fall in a bad standing.”

And they’re not the only ones. Check out this testimonial from someone who fell on hard times during the pandemic:

“I had a financial difficulties due to being ill and the person I chatted with was soooo helpful and nice and solved the problem was Soo worried about I would recommend klarna to anyone.”

Another user describes Klarna as accommodating and easy to use, writing:

One shopper also says that returns are hassle-free, stating, “ I really like that I can split payments, also unlike similar companies, I’ve never had an issue with my refund when regarding returns or cancellations .”

Another patron, a self-professed “loyal customer,” had nothing but good things to say, noting the perk of the rewards program:

“I really like that I can split payments, also unlike similar companies, I’ve never had a issue with my refund when regarding returns or cancellations. Please keep up the great work.”

On NerdWallet, the reviewer shares that Klarna is an ideal option for “ anyone who needs to buy a big ticket item, is new to credit and does not qualify for a credit card, has a credit card without a high credit limit, or wants a BPNL plan that earns rewards. ”

On Better Business Bureau, the brand receives an A+ , showing off its excellent customer service skills. There are a fair number of complaints on the BBB, but Klarna has shown to be very responsive and making sure everyone goes home happy.

That being said, a couple of shoppers report an issue with the fact that Klarna offers small loan amounts. But the company does this for one simple reason: to help you make purchases that are within your means, and therefore inspire you to develop healthier spending habits while still being able to enjoy things you love.

Overall, Klarna is known for making bigger purchases feel more manageable, offering an ideal alternative to credit . And with many different financing options and ways to pay, there’s something for everyone to feel comfortable using,

Is Klarna Worth It?

Klarna Review

With Klarna , there is no catch . You won’t have to pay any extra fees, stress about overspending, or pay a huge bill all at once. It’s the ideal way to finance, budget, and develop spending habits that are easy to keep track of.

The company also offers a rewards program for extra savings, an app that helps you track orders and notifies you when items on your wishlist are back in stock, as well as hassle-free returns. Plus, it’s completely free to use . So, it’s really all perks. 

With all that being said, it is always important to be mindful of how purchases can add up and that budgeting is still essential. 

And Klarna supports this, demonstrating a commitment to helping customers make ethical and sustainable purchases , as well as develop healthier spending habits, which is something we can stand behind.

Knowing that this brand makes it easy to understand what you’re spending while taking the stress out of making a larger purchase, I have one last thing to say in this Klarna review: this app, credit card, and browser extension are worth the try .

Klarna Promotions & Discounts 

Klarna Review

Klarna focuses on making pricey products more accessible , but it’s more of a way to spread out costs rather than receive discounts. So at the time of this Klarna review, I couldn’t find any promo codes for the company itself—you’ll have to check out the website of the brand you’re shopping from!

With that being said, Klarna does have a rewards program in the app that allows you to save, which we outlined in detail earlier.

Where to Buy Klarna

Klarna Review

This one is easy! Klarna is an entirely online platform , available in the app store or as a browser extension. Plus, it’s completely free .

The Klarna app and browser extension allow consumers to pay later across all online stores . Are you looking to shop in person? With the Klarna credit card, you can shop anywhere Visa is accepted (online, in-store, at home, or abroad), regardless of whether a retailer offers Klarna.

Klarna Review

Who owns Klarna?

At the time of this Klarna review, the company is privately held, though CEO Sebastian Siemiatkowski and board member Michael Moritz are at the helm of operations.

Does Klarna ship internationally?

No matter where you are in the world, Klarna is an amazing solution. Shoppers worldwide can use Klarna to break up payments.

What is Klarna’s Shipping Policy?

Since Klarna is more focused on payment plans, it doesn’t have a shipping policy . For details on shipping costs, timeframes, and delivery arrangements, check out the deets offered by the brand you’re shopping from.

What is Klarna’s Return Policy?

If you need to make a return, simply follow the store’s instructions. Then, follow these simple steps:

  • Log into your Klarna account or app
  • Select “ Report a Return ” 
  • Then the payment will be paused and refunded

How to Contact Klarna

I hope you enjoyed this Klarna review! If you have any further questions about the brand or its products, you can contact them by filling out the email form .

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what is klarna reviews

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Reviews 4.0.

211,141 total

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Great service, thank you ☺️

When you are on air bnb trying to juggle apartments & get a solid rental for a family holiday, Klarna have got the goods making it easy to place, in my case, 3 separate payments on venues till 1 was confirmed. They got the voids & refunds back to me super quick. Thanks Klarna, much appreciated, I’m a happy user 💐

Date of experience : February 25, 2024

Klarna my friend my home builder …

I totally love klarna helps me to buy what i would not be able to afford out right and pay off deals with problems with company's until problem is solved caring and so helpful and understanding when you come across company's you buy from who are not so great with product..thankyou you klarna changed my life and home x

Date of experience : January 25, 2024

Klarna is a Life Saver

Overall ease of use andballowing me the flexibility to purchase items making paymets over 4 installments so I can still enjoy making purchases I might not be able to of I had to pay all at once. Love that there are alot of major sellers who acept this form of payment.

Date of experience : January 01, 2024

It is basically like a free credit card…

It is basically like a free credit card but better. I dont need to worry about apr nor interests. And the more I pay throu klarna, more benefits I receive. I honestly havent had any negative experience till now.

Date of experience : February 26, 2024

Reply from Klarna

Thanks so much for the review, nothing but clear skies and smoooth sails when you're shopping with Klarna! ⛵

I love Klarna!

I love Klarna!! It's so convenient and easy. I appreciate that you accept me or ehat i mean is I qualify!! Especially when i was just falling on bad times and now I'm back on my feet and it's nice to have a company who supports people like me and gives me some options to work with. Thank you so much!! It's much appreciated!!

Date of experience : February 16, 2024

Klarna gives you an opportunity to…

Klarna gives you an opportunity to purchase items by splitting payments. I normally have one or two payments taken out then I try to pay it off.

Date of experience : February 28, 2024

All Smiles For Klarna

My experience is great with Klarna, It’s easy to make 4 payments when you are allow the purchases you need without paying full price all at once. (Grateful)

We love to hear it!

I love the payment plan and how if you need to change the date on the payment you are allowed to also can’t wait to order more from this place. Thank you for trusting me letting me pay payments on my items.

Date of experience : February 27, 2024

We love to hear it! 🙌

Convenience at it's finest but...

It's a good app. Great for those who don't have a credit card or if your in debt. The only thing I will say is I had spoken to a mortgage lender and they did tell me that if your in the process of looking for a home and having tongo through the bank to mortgage your home. It does not look good if you have these kind of charges on your account because it tells them you can't afford to make a payment. So, buyer beware!

Poor Customer Service

I purchased an item using the Klarna app. When I didn’t received the item, I filed a dispute against the seller. Klarna declined to refund me, stating that the item was recorded by the seller as being delivered. Neither parties were willing to investigate the shipping service. I escalated concern through their chat system that they also refer to as their formal complaint department with “specialists” standing by to assist. Klarna does not provide a physical number or email that you can reach out to for additional support. Everything is communicated via chat or via their customer service messaging system. WARNING! The company was founded and is currently based in Stockholm, Sweden.

Hi there, we do want to make sure this issue is resolved smoothly and by doing so, you can report this incident to our team so that this can be forwarded to a senior specialist who can further investigate this for you. Please visit us at https://www.klarna.com/us/customer-service/how-can-i-make-a-formal-complaint-to-klarna/. Thanks.

Makes shopping bearable

Makes shopping bearable. Instead of buying stuff you really need now when you get paid every other Friday, you can now buy it in installments and get it right away.

Date of experience : February 01, 2024

I would give 0 stars

I would give 0 stars if they would exist. Imagine going to shop with Klarna Bank and you realize that your account is suddenly closed. Your money is stuck in the bank and the customer service is unreachable with calls and emails. Verification with Klarna is pain in the ass with their unrespectful employees who verify you when opening a bank with them. KLARNA IS A TOTAL TRASH

Date of experience : December 14, 2023

Klarna vouch for companies do you use…

Klarna vouch for companies do you use them as you trust klarna but don’t resolve any issues . I was sold a broken phone and back market is impossible to get hold of even tho I bought insurance . Klarna didn’t do anything they promised and continued to take payment any way I will never use klarna again Added …. I have disputed this and it was ignored with no action so the below statement from klarna is untrue 348342349 is the number if you want to check

Date of experience : January 17, 2024

Hi there, thanks for your review. We are sorry to hear this. We want to highlight that Klarna vets every merchant we partner with to ensure they meet our highest standards. We apologise these standards have not been met in your case, and want to assure you we will help. We believe no one should have to pay for a faulty, and we have measures in place to support our customers in cases like this. You can read our full Buyer Protection in them following link: https://www.klarna.com/uk/buyer-protection-description/ We kindly ask if you could dispute your invoice in the app. To do this: 1. Go to Orders and select the order you want to cancel 2. Tap Report a problem or More and then Report a problem 3. Select the option that suits you best and follow the instruction to pause your payments This pauses your invoice, allowing some time for the store to update it on their end. If they fail to do so, our team will reach out to you after 21 days to request additional information. Please respond to this request as it allows our team to step in and investigate directly with the store on your behalf. As soon as our team have any updates on their investigation, they will be in touch with you. We hope this information can help, however please reach out to us anytime if you need further assistance. Find us via the in-app chat, or by calling 0808 189 3333 (Mon-Sat 9 am-6 pm). Thanks / The Review Team @ Klarna.

Worst customer service I have ever received

Will never use this cmpany again I put a complaint in around February to March 2023. Despite repeated chasing the complaint was never dealt with or resolved. Every time I rang to case it the oplaint had been closed they then opened it againn and closed it within another month All the relevant information was sent to them by email but they just ignored any evidence sent I do not expect to hear from them even though they still owe me money Very disappointed.

Date of experience : February 28, 2023

Hi Karen, thank you for your review. First and foremost, we want to offer our sincerest apologies for any stress that has been caused by this situation, and for the fact we have been unable to ease this stress for you. We completely understand your frustration in the way your case has been handled, but we want to assure you that our dedicated specialist team thoroughly investigates all case handling and are in touch with a resolution as soon as they can. We kindly ask you to reach us via email through this link https://www.klarna.com/uk/contact-customer-service/ and request a new complaint to be filed. For more info on our complaints procedure, please visit: https://www.klarna.com/uk/feedback-and-complaints/ Under the tab 'What happens if I remain dissatisfied after I’ve received a final response?' you can select the link 'complaints handling procedure' and here you can find a complete timeline on our process and what to expect over the coming weeks. We will also outline it below for your convenience: 1. We will acknowledge your complaint promptly. 2. We will investigate your complaint and endeavour to send a final response to you within 4 weeks of receipt of your complaint. If we are unable to provide you with a final response within this time, we will send you an update. 3. We will endeavour to send a final response to you within 8 weeks of receipt of your complaint. If we are unable to provide you with a final response within this time frame, we will write to you explaining why and advise you when you can expect a final response. 4. If you are dissatisfied with the final response you have received, or more than 8 weeks have passed since you submitted your complaint to Klarna and you haven’t received a final response, you may refer your complaint to Klarna's Complaints Adjudicator for an impartial review We are sorry for any inconvenience caused thus far, and we thank you in advance for the chance to rectify it. Thank you / The Review Team @ Klarna

I love that i don’t have to pay…

I love that i don’t have to pay everything at once. It’s very convenient for me i also love that i don’t have to pay any interest on anything. This is a dream app for me and i appreciate how they give you points and purchase power this app is dope

Thank you Delishay!

Klarna for the Win!

I’ve used Klarna for several purchases and have only had good experiences and this includes for a clothing item I had to return. I love the versatility and ability it gives me to make purchases and pay over time.

Thanks so much for the stellar review, Devan. At Klarna we aim to make shopping a simple, headache free experience and we are glad that we could be your one stop shopping destination.

The best! I wouldn't dare to go shopping without the protection of Klarna! These guys got my back numerous times when the companies I was buying from were fake! I'm so grateful! Thank you Klarna people for making me feel safe !!

Never disappointed with Klarna's…

Never disappointed with Klarna's experience!! Always come to the rescue when you really need them. I don't have to sweat before having products and services sorted for me. Klarna is always a sure go-to!

Etsy and Klarna charged my checking…

Etsy and Klarna charged my checking account twice for the same purchase. I wanted a refund back for one of the charges and the customer service representative was sarcastic and refused me my rights as a paying customer to speak to her supervisor. She was rude and obnoxious. I want ever refer people or my followers on my Social Media Platforms to make purchases to Etsy through Crooked A$$ Klarna!!!

Hi La'Toya, we want to first and foremost apologize for this as this definitely sounds like a frustrating experience. We do want to make sure this issue is resolved smoothly and by doing so, you can report this incident to our team so that this can be forwarded to a senior specialist who can further investigate this for you. Please visit us at https://www.klarna.com/us/customer-service/how-can-i-make-a-formal-complaint-to-klarna/ to view steps on how to do this and to also view contact information.

Worth using whenever needed

Klarna initially gave me $250 to start with to use to get what I needed when I only had 25% of the cost. After a few purchases and a few on time payments they have increased my purchase power to $400+ which will come in handy if I ever need it. Works great with Amazon and Etsy. And a bunch of other online merchants.

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Klarna Buy Now, Pay Later: 2024 Review

Jackie Veling

  • 20+ years of combined experience covering personal loans and financial topics.
  • Objective, comprehensive star rating system assessing 20+ categories and 70+ data points.
  • Governed by NerdWallet's strict guidelines for editorial integrity .

Klarna's no-interest pay-in-four plan may be a good fit for BNPL users, as long as they can make the payments on time.

Klarna

Pros & Cons

  • Offers zero-interest loans.
  • Includes access to rewards program.
  • Pauses account after missed payment.
  • Offers monthly financing.
  • Charges late fee.
  • No option to build credit.
  • May send past-due borrowers to collections.

Compare to Other Lenders

Full review of klarna.

Klarna is a “ buy now, pay later ” provider that offers a pay-in-four plan in addition to longer financing options. Its pay-in-four plan comes with no interest and no fees if you pay on time, though it charges a late fee for missed payments.

Klarna partners with popular retailers like Macy’s, Sephora and Etsy, so you can opt in to Klarna directly at checkout. You can also download the Klarna mobile app to shop anywhere online and in some stores.

Klarna at a glance

How does klarna work, klarna pay-in-four.

Klarna offers a pay-in-four payment plan, which lets shoppers split their purchase into four equal installments to be paid every two weeks, with the first due at checkout.

For example, if your purchase costs $200, you would pay $50 at checkout. The three remaining $50 payments would each be billed to your payment method every two weeks until you’ve paid in full. You can use a debit card, credit card or bank account for pay-in-four with Klarna.

Installments are interest-free, but the company charges a late fee of up to $7 if you miss a payment. Late fees are capped at 25% of the total purchase amount. After two failed attempts to acquire payment, Klarna will also pause your account so you can’t continue using the service. This can help keep you from overextending yourself.

There's no penalty for making a payment early or paying off your balance in full before the final due date.

Other Klarna payment options

Klarna offers other financing options besides pay-in-four, including an interest-free option to pay in full in 30 days. Instead of paying at the checkout, shoppers have 30 days after the item ships to pay for their purchase. This plan allows online shoppers to try out items before they have to pay anything, according to the company.

Klarna also offers monthly financing, with terms up to two years. These loans may charge interest up to 33.99% APR.

Is Klarna a good idea?

Whether you should use Klarna depends on your financial situation. Weigh the pros and cons below to decide whether it’s the right fit for you.

Where Klarna stands out

Interest-free financing: Klarna’s pay-in-four can help you spread out the cost of a purchase without incurring interest, which is hard to find among other types of credit products, especially those that have no minimum credit score requirement.

Multiple payment plans: While some buy now, pay later (BNPL) lenders offer only a pay-in-four plan, Klarna offers multiple payment types, which could help you finance a bigger purchase. Longer payment plans aren’t a fit for everyone, though, especially because they tend to charge interest.

Rewards program: Klarna’s free rewards program is unique among BNPL providers and may help you get more out of your purchase. Once you download the Klarna mobile app, you can join the rewards program and earn one point for every dollar you spend. Points can be cashed in for rewards, which are redeemable at select retailers. You may also receive access to special offers and deals.

Ability to reschedule payments: Klarna lets you push back one payment per order by 14 days for no additional fee. This flexibility can help you avoid a late fee if you’re short on cash for an upcoming installment.

Where Klarna falls short

Charges late fee: If you’re 10 days overdue on a payment, Klarna may charge a late fee up to $7. Not all BNPL lenders charge fees, even for a late payment, and incurring fees can add significant costs to a BNPL purchase.

Charges service fee: Klarna may charge a flat fee when you use a one-time card to make biweekly payments with an online retailer that’s not a Klarna partner. A one-time card, which you create in the Klarna mobile app, lets you use Klarna at any online store that accepts a Visa card. Klarna doesn’t disclose how much the fee is but says it’ll be included in your first installment.

Klarna offers a monthly subscription service called Klarna Plus, which waives service fees, among other benefits. However, the subscription costs $7.99 per month and may not be worth the cost for some shoppers.

Payments aren’t reported to the bureaus: BNPL lenders don’t typically report payments to the three major credit bureaus (Equifax, Experian and TransUnion) for pay-in-four plans, and Klarna is no different. Showing a history of on-time payments to the bureaus can help you build credit, which opens the door to more affordable financing options.

Collection practices: If your loan is outstanding for long enough, Klarna may send you to a debt collection agency, which not all BNPL providers do. Klarna says this is a last resort — less than 1% of Klarna transactions end up in collections — but it’s something to note. Having a debt in collection can hurt your credit score, though it’s less clear how BNPL debts affect credit.

What to know about 'buy now, pay later'

You can now use “buy now, pay later” to check out at most retailers. The type of payment plan — and whether it charges interest or fees — depends on the BNPL provider, so it’s important to pay close attention to the loan terms you’re offered at checkout.

For some users, BNPL is a smart way to break up a purchase, especially if you get a zero-interest offer and are positive you can afford the installments. Getting approved may also be easier compared with credit cards or loans because there’s no minimum credit score requirement.

But BNPL is still a form of debt, and there are risks. The Consumer Financial Protection Bureau released a study in September 2022 raising concerns about inconsistent consumer protections, the ease of debt accumulation and overspending, and data harvesting and monetization. Another CFPB study from March 2023 identified BNPL users as more likely to show signs of financial distress.

NerdWallet recommends using BNPL only for necessary expenses. Though BNPL can be a convenient and low-cost payment option, you’re still taking on debt, and it’s rarely a good idea to go into debt for a nonessential purchase.

How to get approved for Klarna

To be eligible for Klarna, you’ll need to be at least 18 years old, be a U.S. resident, provide a valid payment method and be able to receive verification codes to your phone via text.

According to Klarna, each purchase is an individual approval decision, so you may be approved for one purchase but not another. Klarna looks favorably on applicants who show positive credit history with the company, meaning they don’t miss or delay payments.

Does Klarna check credit?

Klarna performs a soft credit check, which doesn't hurt your credit score. Klarna doesn't disclose a minimum credit score requirement, and borrowers with fair or bad credit (689 credit score or lower) may be eligible to use Klarna’s payment plan.

How does Klarna compare?

Klarna is similar to pay-in-four plans offered by Afterpay and Sezzle, which charge no interest and no fees if you pay on time. Afterpay and Sezzle also offer monthly financing options, which may come with interest.

How to get Klarna

Download the klarna app or klarna chrome extension.

If you want to use Klarna, you can download the mobile app, where you can create an account and start shopping. Klarna also offers a Chrome extension, which lets you use the pay-in-four plan while shopping in the Chrome browser.

Shop with Klarna online and in stores

Some retailers have Klarna integrated into their online checkout flow, which means you can opt in to a Klarna payment plan on the retailer’s site.

If you want to shop in person, look for the store in the Klarna app and then create a digital card, which you can save to your mobile wallet and use to check out at the store. Some stores may also offer a QR code that you can scan at checkout to pay with Klarna.

Alternatives to Klarna

If you have good or excellent credit (690 credit score or higher), you may consider a 0% APR credit card . These cards offer introductory periods of up to 21 months and charge no interest during that period. You may also receive a sign-up bonus or access to a rewards program.

If you’re looking to fund a large, essential purchase, you could apply for a personal loan . Personal loans have fixed interest rates and longer repayment terms, and there are options for borrowers with fair or bad credit (689 credit score or lower).

You can pre-qualify with NerdWallet below to see your loan options. Pre-qualifying doesn’t affect your credit score.

Find the Best Personal Loan

NerdWallet’s review process evaluates and rates “buy now, pay later” (BNPL) loan products from the top financial technology providers. We collect over 40 data points from each lender, verify the information with company representatives and compare the lender with others that seek the same customer or offer a similar BNPL product. NerdWallet writers and editors conduct a full fact check and update annually but also make updates throughout the year as necessary.

Our star ratings award points to BNPL providers that offer consumer-friendly features, including: soft credit checks to pre-qualify, zero interest and minimal fees, transparency of rates and terms, flexible payment options, accessible customer service and built-in borrower protections. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they affect consumers’ experiences.

This methodology applies to classic BNPL loans, which divide payment into four equal installments, typically due over six weeks. Some providers offer other loan products with longer terms, which is factored into the rating process. NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for buy now, pay later and our editorial guidelines .

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Company overview.

Klarna is a financial technology company that provides buy now, pay later services. It was founded in 2005 in Stockholm, Sweden. Today, Klarna has 150 million active consumers across more than 500,000 merchants in 45 countries.

Klarna offers three different payment plans to best fit your budget.

Pay no interest if you choose to pay in four installments or within 30 days later.

Klarna’s customer service can be reached at any time.

Late payments may be reported to credit bureaus.

Long-term financing might require a hard credit check and will charge interest.

On-time payments are not reported to the credit bureaus.

How Does Klarna Work?

Klarna allows you to shop at your favorite retailers in the app, either in person at stores or anywhere online. There is also a Klarna browser extension in Chrome that lets you split purchases when shopping from your desktop.

The Klarna debit card can also be used to pay anywhere that accepts Visa, including online, in-store and abroad. It comes with 0% APR and a monthly fee of $4.99, and your credit score isn't affected by applying for or using the card.

Additionally, Klarna offers a free rewards club that allows you to earn one point for every $1 you spend with Klarna. Points can receive a boost by completing tasks in the app. Members also get exclusive access to deals.

Other perks of using Klarna include a tool for managing all of your loyalty cards, discounts for referrals and a wish list that notifies you when a product's price drops.

Where Is Klarna Accepted?

Klarna partners with thousands of retailers all over the world, with the option to pay via Klarna online or in-store. Some of the major retailers include Nike, Instacart, Versace, Sephora and Wayfair.

What Are the Terms and Fees?

Klarna offers financing plans up to 24 months with an annual percentage rate, or APR, ranging from 0% to 29.99% APR.

Installment purchases below $25 do not incur a fee if a payment is late. Late fees for purchases above $25 are tiered, and will not exceed 25% of your order value. The Klarna Card comes with a $4.99 monthly fee.

How Are Payments Structured?

Klarna allows users to pick a flexible payment schedule that fits their budget:

  • Pay in 4. Allows you to split your purchase into four interest-free payments, paid automatically every two weeks, with the first 25% paid upfront.
  • Pay in 30 days. Choose to shop now and pay up to 30 days later, interest-free. This option is only available with select retailers.
  • Financing. For larger purchases, Klarna offers financing plans with terms of up to 24 months and an APR up to 29.99%.
  • Pay Now. You can opt to pay in full right away, and earn Klarna rewards points on your purchase.

If you miss a payment, Klarna will attempt to collect it again in seven days. If the payment still doesn't go through, the missed payment will be added to your next scheduled payment, along with a late fee. If you have an outstanding payment, you won't be able to continue using Klarna until you've paid off your debt. Late financing payments might also be reported to the credit bureaus. If you need more time to pay, you can extend your next payment date by 14 days once per order.

Find the Best Personal Loans for You

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How Does Klarna Compare?

Klarna vs. Affirm

Accepted: Klarna's partner stores include Instacart, Sephora and Wayfair, among many others. Affirm is also available at many stores, including popular retailers like Amazon and Target. APR: Klarna only charges interest on long-term installment plans, with an APR of up to 29.99%. Affirm also charges interest on long-term financing, up to 36% APR. Terms: Klarna offers the option to pay in monthly installments up to 24 months, while Affirm repayment terms can range from as short as one month to as long as 48 months for larger loans. Fees: Klarna charges fees for late payments on purchases over $25, according to a tiered structure. Affirm, on the other hand, does not charge late fees.

Klarna vs. Afterpay

Accepted: Both Afterpay and Klarna are widely accepted as payment methods. However, their retail partners can differ. Klarna's partner stores include Instacart, Sephora and Wayfair. Retailers that accept Afterpay include Target, Shein, Pandora, MAC Cosmetics and Dyson. APR: Klarna only charges interest on long-term installment plans, with a rate of up to 29.99% APR. Afterpay does not charge interest on its pay-in-four payment plans. However, you'll pay 0% to 35.99% APR for its monthly payment plan. Terms: Klarna offers repayment terms of up to 24 months. Afterpay's monthly installment plans range from six to 12 months. Fees: Klarna charges late fees on a tiered structure which are capped at 25% of the order value. Afterpay charges late payment fees which also will not exceed 25% of the original order value.

How Does Klarna Affect Your Credit?

When you use the Pay in 4 payment option, Klarna runs a soft credit check. This means it won't affect your score. However, if you apply for one of the other financing options, a hard credit check might be required, meaning it will show up as an inquiry on your credit report.

Is Klarna Reputable?

Klarna is accredited by the Better Business Bureau and has an A+ rating. Trustpilot users rate Klarna with 4 out of 5 stars, based on more than 162,000 reviews.

In 2022, the Consumer Financial Protection Bureau received 126 consumer complaints about Klarna. The company gave a timely response in all cases. It closed 121 cases with an explanation, while five were closed with monetary relief.

How is Klarna's Customer Service?

You can get 24/7 help using Klarna's chat function on the website or in the app. You can also call any time at 844-552-7621.

Klarna Is Best For People:

  • Who tend to make small purchases.
  • Who know they will not be late on payments.
  • Who are interested in additional perks and savings options.
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Klarna Review

Earn rewards on your buy now, pay later purchases at more than 450,000 retailers

what is klarna reviews

Katie Miller is a consumer financial services expert. She worked for almost two decades as an executive, leading multi-billion dollar mortgage, credit card, and savings portfolios with operations worldwide and a unique focus on the consumer. Her mortgage expertise was honed post-2008 crisis as she implemented the significant changes resulting from Dodd-Frank required regulations.

what is klarna reviews

As a buy now, pay later (BNPL) app, Klarna makes it easy for customers to use their service with over 450,000 participating retailers and the ability to create virtual card numbers to make purchases everywhere else. If you need more time than traditional Pay in 4 loans allow, it also offers longer-term loans so you can make your purchases and stay within your budget.

  • Pros and Cons
  • Key Takeaways
  • Company Overview

No interest on Pay in 4 financing

Offers multiple ways to finance purchases

Create virtual card numbers for other stores

Set price alerts in the app on your saved items

Requires a soft credit check

May report missed payments to credit bureaus

Charges late fees

  • Klarna is available at over 450,000 retailers
  • Purchases earn rewards through its Vibe rewards club
  • Can share wish list with family and friends for gift ideas
  • Pay in 30 program allows an interest-free trial of items

Klarna is a private company that was founded in Sweden in 2005. It has attracted numerous rounds of investor capital, with one of the latest being a $800 million round of funding in July 2022.

There are more than 150 million active users and 450,000 merchants across 45 countries. When customers shop online or through the app, they have multiple financing options to choose from. The first is the traditional buy now, pay later format of Pay in 4, which requires 25% down immediately and three equal payments every two weeks to pay off the rest. Customers may also choose Pay in 30 interest-free financing or term loans ranging from six to 24 months.

  • Credit Limit Varies per customer
  • Amount Due at Purchase Varies by loan type
  • Repayment Terms Varies by loan type
  • Interest None
  • Credit Check Required Pay-in-4: Soft credit check; Pay in 30 days: Soft credit check; Six to 24 mos: Soft credit check
  • Minimum Credit Score Not available
  • Other Financing Products Pay in 30 days with no interest; Six to 24-month financing; Virtual card numbers
  • Company Website www.klarna.com

Pros Explained

Cons explained, how it works, interest and fees, approval process, customer service, customer satisfaction, other services, klarna vs. affirm, methodology.

Customers who want multiple options for BNPL should consider Klarna. This app offers Pay in 4 financing with no interest or fees, as long as you pay on time, while also offering loans up to 24 months when you need extra time to pay off your purchase. While there is a soft credit check, your credit score will not be affected by Klarna's Pay in 4 loans as long as you make all of your payments on time.

Klarna's app allows you to create a wish list of your favorite products and will notify you if a price goes down. Customers can shop at over 450,000 retailers online or through the app and create virtual card numbers to use at other U.S.-based stores. Every purchase earns rewards through Klarna's Vibe loyalty program that can be used toward a future purchase.

  • No interest on Pay in 4 financing . With Klarna's Pay in 4 financing, you will not pay any interest on your purchases. The interest-free loans make it easier for customers to spread their payments out over time without paying interest on a credit card. However, if you want to use its longer-term financing, you may be charged interest on those loans.
  • Offers multiple ways to finance purchases . In addition to Pay in 4 lending, Klarna also offers interest-free Pay in 30 loans so you can try out items, return what you don't like, and pay for what you keep. It also offers longer-term loans ranging from six to 24 months that allow you to keep your monthly payments lower.
  • Create virtual card numbers for other stores . You can create virtual card numbers that can be used just like a traditional credit card. Each virtual card purchase has its own payment plan that is managed online or through the Klarna app.
  • Set price alerts in the app on your saved items . For items that you like, but aren't yet ready to buy, you can set price alerts in the app so that you'll be notified if they go on sale or the price drops. This feature helps you save money on the items you like the most.
  • Requires a soft credit check . To open an account with Klarna, there will be a soft inquiry on your credit report. This will not affect your credit score, but it may mean that some potential customers could be declined for poor credit or a thin credit history.
  • May report missed payments to credit bureaus . While Klarna does not report positive repayment of its Pay in 4 loans to the credit bureaus, if you miss payments and fall behind, it may negatively affect your credit score.
  • Charges late fees . While Klarna does not charge interest on its Pay in 4 loans, it will charge late fees if you miss a payment.

Shopping with Klarna can be done online, through the app, and at participating stores. Your spending limit and ability to shop are determined by Klarna's soft credit inquiry, your personal information, and your Klarna purchase history.

When you make a purchase, you can choose one of three financing options: Pay in 4, Pay in 30 days, or a six- to 24-month loan. The Pay in 4 is a 0% interest option that requires a 25% down payment at the time of purchase, then three equal, biweekly payments for the balance. Pay in 30 loans give you time to try out your items, return what you don't want, and pay for the rest in one lump-sum payment. The longer-term loans require monthly payments until the balance is paid in full.

Through the mobile app, you can view your purchase history, track your shipments, and process returns.

Customers can create a wish list of items for future purchases or to share with friends and family for gift ideas. The app provides notifications if the price drops on any item on the wish list. All purchases earn rewards through the Vibe loyalty program that can be used to reduce the cost of future purchases. This is one of the few BNPL apps that offers a loyalty program that rewards customers.

Klarna does not charge interest on its Pay in 4 loans. As long as you make your payments on time, you'll never pay more than your original purchase price. If you do pay late, there is a late fee, however, the Klarna website does not clearly disclose late its late fees.

To get started with Klarna, you'll first need to download the app and create your account. During the signup process, Klarna will perform a soft credit inquiry to confirm your identity and determine your spending limit. This soft inquiry will not affect your credit score, nor will it appear on your credit report.

While setting up your account, you'll provide basic details like name, email, address, and phone number. Additionally, you'll add bank information for your payments to be withdrawn when you take out a loan.

Customers can browse and shop for items through the Klarna mobile app. It is available for both Apple and Android mobile devices. You can view your purchase history, track deliveries, view previous and upcoming payments, and make changes to your payment method.

The mobile app offers new deals every day and includes exclusive discounts for Klarna users at over 450,000 retailers. Customers can create wish lists of their favorite stores and products to save for later and share with friends and family looking for gift ideas. You'll also be alerted whenever there are discounts or price drops on your favorite items.

Save money by creating a wish list of your favorite items and be notified whenever there's a discount or price drop.

Klarna's free rewards club is called Vibe. Customers earn rewards on every purchase and unlock a $5 welcome reward when they complete their first payment.

You can use Klarna's Pay in 4 financing at other retailers, as well. Simply create a virtual card number in the Klarna app and you can spread out payment of your purchases as if you were shopping through the app. 

If you have a customer service issue, there are multiple ways to contact Klarna's customer service team 24 hours a day, seven days a week. Online chat is available through the Klarna website or you can send a message through the Klarna app. You can even call customer service at 844-KLARNA1 (844-552-7621).

Klarna is rated highly on online rating websites. As you would expect, the company has its share of negative reviews and complaints, just like any other financing company. Klarna typically replies to negative reviews within two business days and has replied to almost 90% of its negative reviews.

Its app receives overwhelmingly positive reviews from both Apple and Android mobile device users. It has a rating of 4.8 stars in the Apple App Store and a 4.6 rating in the Google Play store.

Klarna makes it easy for customers to contact customer service the way they want to. Customers can chat online, send a message through the app, or call customer service 24 hours a day, seven days a week. Having the ability to contact customer service at all hours of the day or night makes it easier to resolve issues and improve customer satisfaction.

In addition to Pay in 4 financing, Klarna also offers no-interest loans for 30 days and longer-term loans from six to 36 months.

The Pay in 30 loans do not charge any interest. However, full payment is due at the end of the 30 days, so you should only use this financing option if you have the money to pay off the balance in full within 30 days. These loans are best used when you want to try out several items, return the ones that you don't want, then pay for the rest.

Customers may also finance their purchases using longer-term financing of up to 36 months. These loans range from six to 24 months and require monthly payments. The interest rate is 0% to 24.99% on these loans.

With multiple financing options, Klarna customers have the flexibility to pick and choose which loans work best for each purchase.

Klarna and Affirm are two of the buy now, pay later apps that offer longer-term financing on customer purchases. While Pay in 4 financing is gaining in popularity, many customers cannot afford to pay off their purchases within six weeks. Longer-term financing options — up to 24 months for Klarna and 48 months for Affirm — enable customers to spread out their payments over many months so that the payment amounts are more affordable.

Affirm is the better option for shoppers because shoppers may qualify for 0% financing over longer repayment periods than what is offered by Klarna. Affirm customers may also use The Affirm Card to split repayment of purchases over $100 into four easy installments.

Klarna offers attractive buy now, pay later financing for its customers. It charges no interest or fees on its Pay in 4 loans as long as all payments are made on time. Plus, it offers other payment options if you need more time to pay your balance in full. Customers can shop online, through its app, or in-person with a virtual card number at participating retailers.

The company does require a soft credit inquiry, but this will not affect your credit. It does not report to the credit bureaus as long as your account is in good standing. Because Klarna performs a soft credit inquiry, potential customers with bad credit or limited credit history may not get approved.

We researched publicly available information about the Klarna buy now, pay later app from its website, mobile apps, and other relevant sources. Data points on interest rates and fees, credit limits, repayment terms, credit requirements, app features, and more were gathered to write this review. Our review focuses on the features we consider most important to potential users as they consider BNPL services to finance their purchases. This information is updated regularly to ensure that readers can make an informed decision when financing their purchases.

Klarna. " What Is Klarna? "

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Klarna Klarna

  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Multiple types of repayment plans offered
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No interest charged
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Convenient shopping on mobile app
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Soft credit check
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Can use with thousands of retailers
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Physical card available
  • con icon Two crossed lines that form an 'X'. Late fee
  • con icon Two crossed lines that form an 'X'. Late and missed payments may be reported to credit bureaus

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Klarna is a buy now, pay later (BNPL) lender that allows you to defer the full cost of an item until a later time. You'll make the first of four payments when you purchase the item, then will pay off the rest over six weeks. Your payments will be due every two weeks. 

Choose between two payment options when you check out, Pay in 4 or Pay in 30 days. With the first option, you split the cost of your item into four interest-free payments paid every two weeks, with the first payment due when you get the item. With the second option, you'll receive an invoice for the item due in 30 days, and you'll have to pay off the item by then. 

For some large purchases, you may also see the option to get financing over a longer period, usually between six months to two years. Some items come with no interest charges, but it depends on the item and the individual store you're buying from. 

Pay with Klarna through its app, on a partner store online, or in person at a mall or store. Klarna also launched a physical BNPL card in June 2022, and you'll be able to use that card as a BNPL option anywhere Visa cards are accepted. The card is free to use for the first year you have it, then will cost $3.99 per month after that introductory period. 

There are thousands of retailers that allow you to use Klarna to finance your purchases. Some popular companies include Abercrombie & Fitch, H&M, and Shein. Klarna also has a Google Chrome extension which allows you to Pay in 4 anywhere from your desktop.

There's no cost to use Klarna — as long as you pay on time. 

If you fail to make a payment for 10 days after its due date, you will pay a late fee of up to $7. This fee won't exceed 25% of the installment payment amount. Additionally, if you are late on a payment with the Pay in 30 purchase option, you will be in default and unable to use the service in the future. Avoid this at all costs. Klarna may employ a debt collection agency to get the unpaid money and report default information to credit bureaus.

If your payment is returned — for example, you have insufficient funds in your bank account — Klarna will charge you up to $27, though the amount won't exceed the installment payment amount. 

Klarna will run a soft credit check when you use the application to buy something. A soft credit check allows a lender to see your credit history without impacting your credit score . If you choose a long-term financing option, Klarna may perform a hard credit inquiry , which does impact your credit score. 

To use Klarna, you need to be a resident of a US state or territory. You also need to be at least 18 years old, have a valid bank account, and have a positive credit history.

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Klarna is best for borrowers who want to take advantage of spreading out the cost of an item over several installments – and who can fit those payments into their budgets. You also won't pay interest on Pay in 4 or Pay in 30 payments, so the overall cost of your purchase will be less than putting it on a credit card or taking out a personal loan. However, you might pay interest with long-term financing. 

How Klarna compares to other buy Now, pay Later apps

Klarna and Afterpay charge late fees, while Affirm doesn't. The late fees are relatively small, but if you are worried you might fall behind on your payments, this may be a factor that's important to you. 

Both Affirm and Klarna offer physical cards, allowing you to make purchases anywhere Visa cards are accepted. Affirm allows you to use the BNPL option on eligible purchases over $100, while Klarna doesn't specify its limits.  Physical cards give you greater flexibility over where you shop — the store you purchase from doesn't have to be partnered with the BNPL company. 

You're able to use the "pay in four" option with all three companies, meaning you pay for your item over four installments. Additionally, each company has thousands of retailers they have partnered with, making buy now, pay later a great choice for many items. 

Klarna is a Better Business Bureau-accredited company and has an A+ rating from the BBB, a nonprofit organization focused on consumer protection and trust. The BBB evaluates companies based on responses to customer complaints, honesty in advertising, and openness about business practices. 

Keep in mind that a top-notch BBB rating doesn't mean you'll have a great relationship with Klarna. Ask friends and family who have used Klarna about their experiences with the app. 

Klarna hasn't been involved in any recent controversies. Between its clean history and excellent BBB rating, you might feel comfortable using the service. 

On its face, Klarna might seem a little too good to be true, as you can get an item with four-interest free payments, spreading out your cost over multiple paychecks. While it can be a good option for borrowers who budget properly, be careful. 

Klarna may lead you to spend outside your means — higher cost items may seem more affordable when you break down their cost into four segments. You also might be tempted to buy things you don't need, just because they appear cheaper than what you'd normally expect to pay. 

Klarna may report to credit agencies — but that will likely only happen in the case you miss a payment or default on your financing. In that way, it's a lose-lose proposition for you, as you won't see a boost to your credit score with on-time payments, but you will get dinged if you fall behind. 

Yes, you are able to return items on Klarna. To do so, follow the return instructions from the store where you purchased the item. Then, let Klarna know you've returned the items, making note of the tracking number. Finally, check your Klarna app for refund updates. 

How do buy now, pay later companies make money?

Merchants usually pay BNPL companies a percentage of the purchase amount or a flat fee, depending on the company. Some BNPL companies, like Klarna, also make money off of late fees. Additionally, with Klarna's long-term financing, the company can make money off of interest payments.

Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards .

Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.

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Klarna Buy Now, Pay Later: 2024 Review

Hanneh Bareham has been a personal finance writer with Bankrate since 2020. She started out as a credit cards reporter before transitioning into the role of student loans reporter. She is now a writer on the loans team, further widening her scope across multiple forms of consumer lending.

Rhys Subitch is a Bankrate editor who leads an editorial team dedicated to developing educational content about personal loans products for every part of life.

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  • At a glance

Klarna Buy Now, Pay Later logo

About Bankrate Score

Klarna's pay-in-four payment plan is a buy now, pay later (BNPL) service that doesn't charge interest. It offers three repayment options: pay in four, pay in 30 days and a financing option of up to 24 months. Founded in 2005, Klarna states that it works with 150 million active customers across the globe and works with 500,000 retailers. 

  • Lender details

This app is best for users who don't need to finance a specific amount of money all at once. 

Find personal loan offers in 2 minutes or less

Choose your loan amount and answer a few questions to see personalized offers.

Best for nonspecific purchases 

Klarna is best for borrowers who want to finance a purchase at the point of sale. Your initial loan amount range will be based on your application information and, with positive repayment history, your maximum loan amount could increase.

Klarna pros and cons 

  • Multiple payment options
  • Access to a rewards program
  • Partners with popular stores
  • Late fee may apply
  • Doesn't help you build credit
  • Limited information available

Do you qualify? 

To use Klarna, you must: 

  • Be at least 18 years of age.
  • Be a resident of the U.S. or one of its territories.
  • Have a positive credit history.
  • Have a valid credit or debit card and bank account.
  • Purchase an eligible item.
  • How this lender compares

Klarna vs. PayPal

Unlike Klarna, PayPal's pay-in-four option has a maximum limit of $1,500. However, if you have multiple small purchases you want to finance then PayPal may be the better option. PayPal also offers the benefit of no late fees with its pay-in-four option. 

Klarna vs. Apple Pay Later 

Apple Pay Later is similar to Klarna in structure, but Apple users will likely find more convenience in Apple Pay Later than Klarna. Rather than having to be redirected or only making purchases within the Klarna app, Apple houses its BNPL loans directly within your Apple Wallet. Every time you make an eligible purchase with your mobile device, it automatically gives you the option to use its pay later option. 

Klarna: In the details

Klarna Buy Now, Pay Later

What we like and what we don’t like

What we like.

  • Multiple payment options: Rather than just a single 0 percent payment plan, Klarna offers both a pay-in-four and pay-in-30 option. Outside of its two 0 percent options, Klarna also offers personal loans with terms up to two years.
  • Access to a rewards program: There is a free rewards club through Klarna that gives one point for every dollar spent using Klarna. Points can be redeemed for discounts and offers at certain stores.
  • Partners with popular stores: From Nike to Instacart, Klarna partners with a number of popular stores that offer a variety of goods. Whether you're looking for clothes, beauty supplies, electronics or more, you'll likely be able to pay with Klarna.

What we don’t like

  • Late fee may apply: If you're late on your payment, you may owe $7. If you miss more than one payment, the late fees can add up — though it's limited to 25 percent of the original purchase amount. You may be able to extend your payment once by up to seven days.
  • Doesn't help you build credit: As with many BNPL options, using this type of financing won't help you build credit. Your on-time payments are not reported to any credit reporting agencies. However, your late payments may be reported.
  • Limited information available: Due in part to its approval requirements varying on a highly individual level, Klarna doesn't provide information on exact financial requirements, or how small of a loan can be taken out.
  • How to contact Klarna

Klarna can be contacted 24/7. You must have a Klarna account to contact customer support by chat. Once you do, you can choose to chat or call with a customer support agent.

How to take out a loan with Klarna 

To start a payment plan with Klarna, you will need to follow four steps.

1. Download the mobile app or sign up online

Head over to your device's app store and download the Klarna app. You can also sign up online by going to the Klarna website.

2. Start shopping

Start shopping within its list of approved retailers. Once you're ready to check out, you'll be able to select Klarna as a payment method if your purchase is eligible for its BNPL option. 

If you've never used Klarna's pay-in-four feature, you'll be guided through the application process. You'll be asked to provide basic information, like your phone number and address, and the app will conduct a soft credit check. 

4. Agree to the terms

If approved, you'll be guided through the loan terms and repayment dates. Klarna will automatically collect your first of the four payments at checkout. 

Klarna features and perks 

Klarna's rewards program is free and awards points for every eligible purchase. Its reward structure allots one point for every $1 spent on eligible purchases. The app also offers a $5 welcome reward upon signing up for the program. These points can then be used to score discounts, deals and offers at a participation store of your choosing. 

Fees and penalties 

A late fee of up to $7 will be charged for each missed payment, and won't exceed 25 percent of your order value. 

Klarna frequently asked questions 

Is klarna legit.

Yes, Klarna is a legitimate business and company that offers buy now, pay later financing options. It is accredited by the Better Business Bureau and is given an A+ rating and Klarna states that it uses "the highest security standards to protect your data and personal information."

What is the downside to paying with Karna?

The major downside to using Klarna — and every similar app — is the convenience of the financing. It often doesn't impact your credit on applying, and can be used just as every other payment method, which can make it easy to soar past your budget and overspend. Plus, it can carry a high interest rate of nearly 34 percent if you use its loan product.

Is everyone approved for Klarna?

No, not everyone is approved for Klarna. But, unlike traditional lending, your creditworthiness doesn't play the largest role in approval. Most buy now, pay later apps — like Klarna — don't conduct a hard credit inquiry for approval, making it easier to get approved with a low credit score. However, it does have a specific set of eligibility requirements and not all purchases are guaranteed to be approved for financing. 

How Bankrate rates Klarna

  • Methodology

The Bankrate team did a complete analysis of the features and services offered by the most well-known buy now, pay later apps in the industry. Then our experts developed a scoring system to rate these apps, focusing on three main areas:

  • Availability: We look at the minimum and maximum loan amounts offered by the apps, as well as the number of interest-free plans they offer. Apps offering more than one interest-free plan and those with the most flexible loan amounts rank higher in this category.
  • Affordability: We evaluate the APR ranges apps assess on purchases once the interest-free period ends. Additional fees, exclusive perks and discounts are also rated. Apps with the lowest APRs, fewer fees and more perks obtain the highest scores in this category.
  • Customer experience: Purchasing flexibility, as well as return, exchange and refund policies are vetted in this section. Mobile app rating, number of consumer complaints with the CFPB and customer support are also taken into account. Apps with more flexibility and lower complaints rate higher in this category.

Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.

On This Page

  • Pros and cons
  • Do you qualify?
  • In the details
  • How to apply
  • Fees and penalties
  • Frequently asked questions

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Great service, thank you ☺️

When you are on air bnb trying to juggle apartments & get a solid rental for a family holiday, Klarna have got the goods making it easy to place, in my case, 3 separate payments on venues till 1 was confirmed. They got the voids & refunds back to me super quick. Thanks Klarna, much appreciated, I’m a happy user 💐

Date of experience : 25 February 2024

Klarna my friend my home builder …

I totally love klarna helps me to buy what i would not be able to afford out right and pay off deals with problems with company's until problem is solved caring and so helpful and understanding when you come across company's you buy from who are not so great with product..thankyou you klarna changed my life and home x

Date of experience : 25 January 2024

Klarna is a Life Saver

Overall ease of use andballowing me the flexibility to purchase items making paymets over 4 installments so I can still enjoy making purchases I might not be able to of I had to pay all at once. Love that there are alot of major sellers who acept this form of payment.

Date of experience : 01 January 2024

It is basically like a free credit card…

It is basically like a free credit card but better. I dont need to worry about apr nor interests. And the more I pay throu klarna, more benefits I receive. I honestly havent had any negative experience till now.

Date of experience : 26 February 2024

Reply from Klarna

Thanks so much for the review, nothing but clear skies and smoooth sails when you're shopping with Klarna! ⛵

I love Klarna!

I love Klarna!! It's so convenient and easy. I appreciate that you accept me or ehat i mean is I qualify!! Especially when i was just falling on bad times and now I'm back on my feet and it's nice to have a company who supports people like me and gives me some options to work with. Thank you so much!! It's much appreciated!!

Date of experience : 16 February 2024

Klarna gives you an opportunity to…

Klarna gives you an opportunity to purchase items by splitting payments. I normally have one or two payments taken out then I try to pay it off.

Date of experience : 28 February 2024

All Smiles For Klarna

My experience is great with Klarna, It’s easy to make 4 payments when you are allow the purchases you need without paying full price all at once. (Grateful)

We love to hear it!

I love the payment plan and how if you need to change the date on the payment you are allowed to also can’t wait to order more from this place. Thank you for trusting me letting me pay payments on my items.

Date of experience : 27 February 2024

We love to hear it! 🙌

Convenience at it's finest but...

It's a good app. Great for those who don't have a credit card or if your in debt. The only thing I will say is I had spoken to a mortgage lender and they did tell me that if your in the process of looking for a home and having tongo through the bank to mortgage your home. It does not look good if you have these kind of charges on your account because it tells them you can't afford to make a payment. So, buyer beware!

Poor Customer Service

I purchased an item using the Klarna app. When I didn’t received the item, I filed a dispute against the seller. Klarna declined to refund me, stating that the item was recorded by the seller as being delivered. Neither parties were willing to investigate the shipping service. I escalated concern through their chat system that they also refer to as their formal complaint department with “specialists” standing by to assist. Klarna does not provide a physical number or email that you can reach out to for additional support. Everything is communicated via chat or via their customer service messaging system. WARNING! The company was founded and is currently based in Stockholm, Sweden.

Hi there, we do want to make sure this issue is resolved smoothly and by doing so, you can report this incident to our team so that this can be forwarded to a senior specialist who can further investigate this for you. Please visit us at https://www.klarna.com/us/customer-service/how-can-i-make-a-formal-complaint-to-klarna/. Thanks.

Makes shopping bearable

Makes shopping bearable. Instead of buying stuff you really need now when you get paid every other Friday, you can now buy it in installments and get it right away.

Date of experience : 01 February 2024

I would give 0 stars

I would give 0 stars if they would exist. Imagine going to shop with Klarna Bank and you realize that your account is suddenly closed. Your money is stuck in the bank and the customer service is unreachable with calls and emails. Verification with Klarna is pain in the ass with their unrespectful employees who verify you when opening a bank with them. KLARNA IS A TOTAL TRASH

Date of experience : 14 December 2023

Klarna vouch for companies do you use…

Klarna vouch for companies do you use them as you trust klarna but don’t resolve any issues . I was sold a broken phone and back market is impossible to get hold of even tho I bought insurance . Klarna didn’t do anything they promised and continued to take payment any way I will never use klarna again Added …. I have disputed this and it was ignored with no action so the below statement from klarna is untrue 348342349 is the number if you want to check

Date of experience : 17 January 2024

Hi there, thanks for your review. We are sorry to hear this. We want to highlight that Klarna vets every merchant we partner with to ensure they meet our highest standards. We apologise these standards have not been met in your case, and want to assure you we will help. We believe no one should have to pay for a faulty, and we have measures in place to support our customers in cases like this. You can read our full Buyer Protection in them following link: https://www.klarna.com/uk/buyer-protection-description/ We kindly ask if you could dispute your invoice in the app. To do this: 1. Go to Orders and select the order you want to cancel 2. Tap Report a problem or More and then Report a problem 3. Select the option that suits you best and follow the instruction to pause your payments This pauses your invoice, allowing some time for the store to update it on their end. If they fail to do so, our team will reach out to you after 21 days to request additional information. Please respond to this request as it allows our team to step in and investigate directly with the store on your behalf. As soon as our team have any updates on their investigation, they will be in touch with you. We hope this information can help, however please reach out to us anytime if you need further assistance. Find us via the in-app chat, or by calling 0808 189 3333 (Mon-Sat 9 am-6 pm). Thanks / The Review Team @ Klarna.

Worst customer service I have ever received

Will never use this cmpany again I put a complaint in around February to March 2023. Despite repeated chasing the complaint was never dealt with or resolved. Every time I rang to case it the oplaint had been closed they then opened it againn and closed it within another month All the relevant information was sent to them by email but they just ignored any evidence sent I do not expect to hear from them even though they still owe me money Very disappointed.

Date of experience : 28 February 2023

Hi Karen, thank you for your review. First and foremost, we want to offer our sincerest apologies for any stress that has been caused by this situation, and for the fact we have been unable to ease this stress for you. We completely understand your frustration in the way your case has been handled, but we want to assure you that our dedicated specialist team thoroughly investigates all case handling and are in touch with a resolution as soon as they can. We kindly ask you to reach us via email through this link https://www.klarna.com/uk/contact-customer-service/ and request a new complaint to be filed. For more info on our complaints procedure, please visit: https://www.klarna.com/uk/feedback-and-complaints/ Under the tab 'What happens if I remain dissatisfied after I’ve received a final response?' you can select the link 'complaints handling procedure' and here you can find a complete timeline on our process and what to expect over the coming weeks. We will also outline it below for your convenience: 1. We will acknowledge your complaint promptly. 2. We will investigate your complaint and endeavour to send a final response to you within 4 weeks of receipt of your complaint. If we are unable to provide you with a final response within this time, we will send you an update. 3. We will endeavour to send a final response to you within 8 weeks of receipt of your complaint. If we are unable to provide you with a final response within this time frame, we will write to you explaining why and advise you when you can expect a final response. 4. If you are dissatisfied with the final response you have received, or more than 8 weeks have passed since you submitted your complaint to Klarna and you haven’t received a final response, you may refer your complaint to Klarna's Complaints Adjudicator for an impartial review We are sorry for any inconvenience caused thus far, and we thank you in advance for the chance to rectify it. Thank you / The Review Team @ Klarna

I love that i don’t have to pay…

I love that i don’t have to pay everything at once. It’s very convenient for me i also love that i don’t have to pay any interest on anything. This is a dream app for me and i appreciate how they give you points and purchase power this app is dope

Thank you Delishay!

Klarna for the Win!

I’ve used Klarna for several purchases and have only had good experiences and this includes for a clothing item I had to return. I love the versatility and ability it gives me to make purchases and pay over time.

Thanks so much for the stellar review, Devan. At Klarna we aim to make shopping a simple, headache free experience and we are glad that we could be your one stop shopping destination.

The best! I wouldn't dare to go shopping without the protection of Klarna! These guys got my back numerous times when the companies I was buying from were fake! I'm so grateful! Thank you Klarna people for making me feel safe !!

Never disappointed with Klarna's…

Never disappointed with Klarna's experience!! Always come to the rescue when you really need them. I don't have to sweat before having products and services sorted for me. Klarna is always a sure go-to!

Etsy and Klarna charged my checking…

Etsy and Klarna charged my checking account twice for the same purchase. I wanted a refund back for one of the charges and the customer service representative was sarcastic and refused me my rights as a paying customer to speak to her supervisor. She was rude and obnoxious. I want ever refer people or my followers on my Social Media Platforms to make purchases to Etsy through Crooked A$$ Klarna!!!

Hi La'Toya, we want to first and foremost apologize for this as this definitely sounds like a frustrating experience. We do want to make sure this issue is resolved smoothly and by doing so, you can report this incident to our team so that this can be forwarded to a senior specialist who can further investigate this for you. Please visit us at https://www.klarna.com/us/customer-service/how-can-i-make-a-formal-complaint-to-klarna/ to view steps on how to do this and to also view contact information.

Worth using whenever needed

Klarna initially gave me $250 to start with to use to get what I needed when I only had 25% of the cost. After a few purchases and a few on time payments they have increased my purchase power to $400+ which will come in handy if I ever need it. Works great with Amazon and Etsy. And a bunch of other online merchants.

Klarna Review: How Does It Work?

  • Money & Credit
  • Banks & Banking
  • Budgeting & Saving
  • Investing & Retirement

Need to shop but want to spread out your payments? Want to sample a product you find online before deciding to keep it?

Klarna is one of several major “buy now, pay later” companies that are becoming massively popular in the United States.

In this article, I’ll explain the risks associated with Klarna , how it works , the spending limits the company offers and more.

Table of Contents

What is klarna, how does klarna work, my experience with klarna, klarna review: what happens if you miss a payment, how does klarna determine your spending limits, klarna pros, klarna cons, alternatives to klarna, klarna: quick look.

Founded in 2005 in Stockholm, Sweden, Klarna offers point-of-sale loans, otherwise known as “buy now, pay later.”

It operates in 17 countries, launching in the United States in September 2015.

Klarna counts Visa, Sequoia and Ant Financial (the parent company of Alibaba) among its investors. Headquartered in Stockholm, Klarna has a U.S. home base in Columbus, Ohio.

Valued at $45.6 billion during a June 2021 fundraising round, Klarna’s website says the company works with 250,000 merchants and claims 90 million active customers (15 million in the U.S.).

You can make purchases online or in person through Klarna’s merchants. Its brand partnerships include:

  • Abercrombie & Fitch
  • Bed, Bath & Beyond
  • Bloomingdale’s
  • Brooks Brothers
  • Macy’s
  • Saks Fifth Avenue
  • Under Armour

Here are the steps to follow if you want to make a purchase with Klarna :

  • Download the Klarna app.
  • Connect the app to a form of payment (debit card, credit card or bank account).
  • Choose Klarna as the payment method when you’re ready to make a purchase (on the retailer’s checkout page online or in the app if you’re shopping in a store).
  • Go through the nearly-instant credit approval process.
  • Make your payments (some Klarna options require a down payment).

Klarna, unique among the “buy now, pay later” (BNPL) companies I’ve reviewed, offers four different payment plans. Each of those plans comes with its own set of nuances.

1. Pay in 4

This is the industry-standard BNPL payment plan. You’ll make four equal, interest-free payments, one every two weeks (15 days in California).

The only difference between Klarna and other BNPL operators is that, if you buy through Klarna online, your down payment won’t be processed until the merchant “completes” your order. That’s typically on the shipping date rather than at the time of the sale.

If you make all your payments on time — paying for the item in full within six weeks (45 days in California) — you won’t owe a cent in fees. If one of your scheduled payments goes 10 days past due, Klarna will charge you a late fee of up to $7 (never exceeding 25% of your installment payment).

You’ll also be in danger of defaulting on your loan. The potential consequences include ruining your credit, having a debt collection agency come after you and getting banned from Klarna.

Merchants make refund decisions (not Klarna). But if a merchant approves you for a return and you’ve paid Klarna (partially or in full), you can get a refund to your original payment method.

2. Pay in 30 Days

Do you like testing items without committing to purchase them when you shop online?

The old-fashioned method for doing that is keeping your receipt and shipping the item back to the sender. But that can lead to slow returns that hold up your money.

Klarna offers “Pay in 30 Days” as an alternative. Once your item ships, Klarna emails you an invoice that’s due in 30 days. You’ll owe zero interest and won’t be charged any fees.

Just like Klarna’s other financing options, you’ll pay with a bank account, debit card or credit card.

You can return your purchase if you don’t want it. If the merchant approves your return, you won’t owe Klarna anything. In other words, you can test out the item before paying. You get a chance to physically see an item that you buy in person at a store; this gives you an opportunity to do the same when you’re shopping online.

If the 30-day deadline is approaching and you still haven’t paid your bill, log into your Klarna account, select the purchase you returned and click “report a return.” Klarna says this will pause your payment until the merchant processes your return.

There’s a major risk with this option according to the terms and conditions listed on Klarna’s website: If you fail to make your payment by the due date, you’ll be in default of your loan.

Again, that can mess up your credit, send a debt collection agency after you and get you banned from Klarna.

3. Financing for 6 to 36 Months

Klarna partners with WebBank, which is FDIC-insured, to offer something similar to a personal loan.

Klarna says that it may do a hard pull on your credit when you applying for this longer-term option.

The minimum purchase price for this option is $540. The interest rate will typically be 19.99%. But Klarna and WebBank offer terms between six and 36 months and interest from 0 to 29.99%. (That 0% is usually part of a promotional offer, and the 29.99% likely means your credit isn’t that great.)

If you don’t pay off your balance by the end of each billing cycle, you’ll get charged interest 23 days later. The company charges a minimum of $2 in interest per month.

Klarna markets this option as “flexible spending for larger purchases.”

This is virtually no different from paying with a debit card, credit card or through your bank account. If you use “Pay Now,” you’ll pay for your entire purchase upfront. However, you’ll check out via the Klarna app.

Why would anyone take the time to do this? Because Klarna sometimes offers discounts with its partners and sends you price-drop notifications. This is supposed to create a win-win-win for you, Klarna and the merchants.

The first item on the Klarna website menu is “Shop.” Click on that, and you’ll get to the partner brands.

Klarna separates them into 17 separate categories. I imagine that most people are shopping at specific stores and don’t notice Klarna (and other BNPL companies) until they get to the checkout page.

Still, it’s nice to be able to sift through all of Klarna’s partner brands in a practical way.

The functionality works just as well on the Klarna app as it does on the Klarna website.

I discovered a boutique salt and sugar company and bought Wild Blueberry Sugar, Black Lava Salt and Black Truffle Salt. I know that because I can still see each individual item and their prices when I’m logged into Klarna.

The BNPL company gave me several intuitive, clear, visual indicators on its app and website about when my payments are due, how much I had already paid and how much I owed.

I also found a way to schedule payments without much digging.

There may be a grace period in some cases. But if you’re late on a payment, Klarna hits you with the trifecta: late fees, debt collection agencies and credit bureau reports.

For the Pay in 4 option, if any of your scheduled payments go 10 days past due, Klarna will charge you up to $7. Its late fees will never exceed 25% of your installment payment amount.

The Pay in 30 Days option doesn’t charge fees. But the financing option charges late payment fees of up to $35.

You go into default immediately if you don’t meet the deadline for Pay in 30 Days. With Pay in 4, you get at least 10 days of grace. And for the longer-term financing, you get at least 23 days from the end of your monthly billing cycle to pay.

Depending on how overdue your payment is, Klarna may report you to the credit bureaus, which can mess up your credit score. It may also hand over your debt to a collection agency.

This type of missed payment can linger on your credit for years and lower your credit score.

Like many of its competitors, Klarna runs a soft credit check when you apply. This won’t impact your credit score. (The company may run a hard check if you’re applying for longer-term financing.)

Klarna will provide a near-instant decision along with an email explanation if it rejects you.

I filled out some basic information with Klarna and the site pre-approved me for an initial $500 credit line for its Pay in 4 option. I had no previous history of payments through Klarna, but I do have a strong credit score.

The company imposes a $540 minimum purchase for its longer-term financing (six to 36 months) and a $10 minimum for other methods. At least publicly, it doesn’t define its maximum loan amount.

You can increase your limits over time by improving your credit score and by showing a history of on-time payments through Klarna.

Here are some of Klarna’s advantages:

  • More options relative to competition. The company offers four different payment options, which is more than I’ve seen from any other “buy now, pay later” company.
  • Zero-interest loans. Klarna’s Pay in 4 (not to be confused with the PayPal program), its most prominent financing option, offers interest-free installment loans.
  • Large number of partner brands. Klarna claims it works with 250,000 merchants in 17 countries. Among the BNPL services I reviewed, only PayPal’s Pay in 4 claims to work with more brands.
  • Rewards program. Called “Vibe,” the Klarna rewards program allows you to rack up one point for every dollar you spend. You can redeem rewards for gift cards from major retailers.
  • Simple interest. Credit cards typically charge compound interest. That costs you more money than the simple interest that Klarna charges.

Here are some of Klarna’s disadvantages:

  • Can threaten your credit if you miss payments. If you miss a payment deadline, the company reserves the right to report that to the credit bureaus. This can impact your credit and stay on your credit report for a long time.
  • Charges late fees. You’ll get slapped with a late fee of up to $7 if you don’t pay on time. That’s easier to do than you may think, as payments aren’t automatic.
  • Doesn’t report on-time payments. If you make on-time payments on a credit card (or to service other debt), it usually gets reported to the credit bureaus. This can help you build a good credit score over time. You won’t get that benefit when you borrow from Klarna.
  • Can encourage excess spending. It’s easier to spend by swiping or tapping a plastic card than by paying with cash, money expert Clark Howard says. It’s even easier to buy when you owe nothing upfront, he says. This can lead you to spend more money than you otherwise would (or should, in some cases).

The best alternative to “buy now, pay later” is to avoid debt: Just say “No.”  

Alternatively, you can pay with a credit card. Klarna offers rewards for purchasing through its service, which is rare. But many credit card rewards programs offer more value.

Klarna offers simple interest, which is better than the compound interest that credit card companies typically charge. However, the company’s standard purchases carry 19.99% APR. According to CreditCards.com , the average credit card charged 16.2% interest as of Sept. 23, 2021.

If you’re isolating BNPL options, here are some of the other major choices:

  • American Express
  • Pay in 4 (PayPal)

Final Thoughts

Klarna offers four different payment options, including the typical “buy now, pay later” method: splitting your purchase into four equal, interest-free payments.

It also runs a rewards program. That potentially negates one of the advantages of using a credit card. However, Klarna charges late fees and reports missed or late payments to the credit bureaus. That even seems to happen instantaneously if you miss the deadline for the Pay in 30 Days method.

Messing up your credit can be a big deal.

Klarna may make sense for some circumstances and personalities. But be cautious and ask yourself questions before you decide to use the service.

More Clark.com Content You May Like:

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  • How PayPal’s Pay in 4 Installment Plan Works
  • Best Rewards Credit Cards: Top Picks for 2021
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Retail | Editorial Review

Klarna Review: How it Works, Pricing & Features

Published June 2, 2023

Published Jun 2, 2023

Meaghan Brophy

REVIEWED BY: Meaghan Brophy

Brigitte Korte

WRITTEN BY: Brigitte Korte

This article is part of a larger series on Payments .

  • 2 When to Use Klarna
  • 3 When to Use an Alternative
  • 5 Merchant Features
  • 6 Customer Features
  • 7 User Reviews
  • 8 Bottom Line

Klarna is a buy now, pay later (BPNL) service that offers customer financing for both in-store and online retail purchases. It is available in 31 countries and has its own marketplace with over 147 million shoppers and a mobile app for completing purchases on the go. Klarna is a good fit for businesses of any size that want to offer BNPL services—it is our pick for the best overall BNPL app for merchants .

  • Pros & Cons
  • Deciding Factors
  • Alternatives

Klarna logo.

  • Offering Klarna financing improves conversion rates
  • Multiple financing options including Pay-in-4, pay in 30 days, or 6- to 36-month plans
  • Klarna assumes loan risk
  • Dedicated customer success team and marketing support
  • High processing rates (3.29%-5.99% + 30 cents)
  • Limited POS integrations
  • Requires good credit from shoppers

Learn more with our guide to the best BNPL services for small businesses in 2023 .

Visit Klarna

When to Use Klarna

Klarna is our pick for the best overall BPNL app because of the services it provides for both sellers and shoppers.

We especially recommend Klarna for:

  • Businesses processing international sales: Klarna is available in 31 countries. To sell internationally, you need to sign up for Klarna in each country in which you want to offer its financing services, but signing up is free and easy.
  • High-revenue businesses: Klarna offers enterprises with more than $3 million in annual sales a dedicated account team to assist with marketing and analytics to grow their business.
  • Small and growing businesses: If your store generates less than $3 million annually, you can still offer each payment method and get marketing support through the merchant portal.
  • Retailers looking for seller protection: Klarna assumes responsibility for fraud risks and chargebacks.

When to Use an Alternative

While Klarna is a great tool for most businesses, there are cases when you might want to use an alternative BNPL provider.

  • Retailers needing diverse integration opportunities: Currently, Klarna only integrates with 11 ecommerce platforms. However, it does offer custom API credentials. If you need more, Affirm has integrations with dozens of platforms.
  • New businesses: Klarna requires a minimum contract of 12 months, which automatically renews one month before the binding period ends. So, if you’re still a new business with an uncertain future, you may want to wait until you’re more comfortable making a yearlong commitment. Affirm or PayPal Later may be better options.
  • Businesses using Square products: Square recently partnered up with Afterpay to offer financing services for in-store and online purchases. While you can still offer Klarna on your Square website, Afterpay will be a much easier service to integrate.

Want to accept regular card payments as well? See our guide to the best merchant services for small businesses.

Klarna Pricing

Opening a Klarna account is free and easy. Simply fill out the application online and then wait for Klarna to review and give approval. Once your application is approved, you’ll receive your API credentials and can begin integrating Klarna onto your site.

Klarna does not charge a monthly service fee, rather charging processing fees for each transaction using the financing service. Your processing rates will range from 3.29%–5.99% + 30 cents, depending on the size and processing volume of your business. When you partner with Klarna, your rates will be determined and outlined during onboarding and then agreed upon in your contract, along with your payout schedule and terms.

Klarna Merchant Features

Expand the sections below to see exactly what Klarna has to offer its merchants, including customer service options, integration abilities, seller protections, marketing tools, and the merchant portal.

Customer Service

Klarna has two programs for merchants—one for businesses processing less than $3 million in sales and one for those processing more than $3 million—with different levels of support tools. Larger businesses get lower processing rates and a dedicated support team to help with marketing, large-scale integration needs, and ongoing support.

All other Klarna merchants have access to customer service through Klarna’s online chat, phone, email, and Klarna’s library of online support resources. Live merchant support hours are limited to Monday through Friday, 8 a.m. to 5 p.m., Eastern time.

Integrations

Klarna integrates with the biggest payment providers and ecommerce platforms, including Shopify, our top-recommended ecommerce platform .

Seller Protection

Klarna protects sellers by taking on all fraud and credit risk when customers use Klarna’s financing services. This means that businesses get paid in full when the purchase is made and are not responsible for collecting payments or issuing late fees.

Read more about how you can protect your business with our guide to the Best Chargeback Protection Services .

Marketing Tools

Klarna has an array of marketing tools for businesses to understand how shoppers are using financing services and increase their visibility. Klarna marketing tools include:

  • The Klarna App Marketplace: Businesses can list their store on the Klarna App Marketplace to help gain visibility among new customers. There is even a new AI feature that caters to what businesses show up on each customer’s marketplace based on their preferences and previous activity.
  • Ads Manager (NEW): Klarna just rolled out its new Ads Manager , where businesses can gain access to Klarna’s first-party data and receive suggestions on creating more relevant shopping experiences, ad creation, and audience targeting.
  • Dedicated account manager: For businesses processing more than $3 million per year, Klarna will provide a dedicated team to give you 1:1 marketing assistance.
  • Ads and Sponsored Content: Target high-intent shoppers with premium placements in the Klarna app, including on the homepage feed.
  • Customer relationship management (CRM) campaigns: Connect your brand with Klarna’s loyal shoppers through Klarna emails, articles, in-app messaging, and push notifications.
  • Comparison Shopping Service: Klarna’s comparison shopping hosting service will help boost your product visibility on Google Search.
  • Creator platform: A new feature of the Klarna app is its creator storefronts, where creators can list products in their own branded store within the Klarna app. Leverage this tool and collaborate with creators to bring your products in front of new eyes.
  • Browser extension: Businesses can deliver highly relevant, targeted incentives through Klarna’s desktop browser extension. The extension, used by over 1 million customers worldwide , reduces bounce rate, and is run on a cost-per-action basis through an affiliate network. Plus, Klarna takes care of all the technical aspects.
  • Virtual shopping: Customers can connect with your team either live or through pre-recorded content to get personalized advice and recommendations. Businesses can even text and email through a list of opted-in customers.
  • Dynamic ads: Klarna uses an artificial intelligence (AI) content engine to create custom dynamic ad campaigns for your entire product catalog. The ads can be scheduled in advance and include push updates, promotions, and sales without altering the algorithms.
  • Closed-loop reporting: Klarna offers closed-loop reporting to know where your marketing dollars are making an impact and how to get a more significant return on your investments.

Klarna sample ads in mobile.

Klarna’s marketing options include sponsored placements. (Source: Klarna)

Klarna mobile notification sample.

Brands can tap into Klarna’s app audience with push notification marketing. (Source: Klarna)

Klarna sample target ads.

Over 1 million Klarna shoppers use the browser extension, which can be used for targeted ads. (Source: Klarna)

Klarna sample product and conversation in mobile view.

Klarna offers virtual shopping options, and retailers partnering with Klarna can tap into its network of over 500,000 influencers. (Source: Klarna)

Klarna sample products.

Klarna retailers can promote products with dynamic, AI-powered ads. (Source: Klarna)

Merchant Portal

The merchant portal helps you manage your day-to-day operations from one dashboard. From the portal, you can view and manage your order history, view payout settlements and disputes, make branding customization, change your settings, and troubleshoot issues.

Klarna merchant portal with Settlements Report page open.

Manage your Klarna account from the merchant dashboard. (Source: Klarna Docs)

Klarna Customer Features

Expand the sections below to see exactly what Klarna has to offer its customers, including financing options, the Klarna app, and the Klarna card. You can also check out Klarna’s demo store , where you can test out what it is like to use Klarna on the customer side.

Four Financing Options

When checking out with Klarna, customers will get four financing options to choose from—more than any other BNPL provider. All merchants are paid upfront and in full by Klarna once each order is processed. Businesses have no further responsibility for collecting payments, so all you have to do is fill and ship the order.

  • Pay-in-4: Consumers can make four interest-free payments paid every two weeks.
  • 6- to 36-month monthly financing: Consumers can spread out their monthly payments for up to 36 months, with an APR from 0%–24.99%. When they check out, they complete an application and receive an immediate response with personalized offers.
  • Pay in 30: This option allows shoppers to place, receive orders, and pay in full up to 30 days later without any interest or upfront payments.
  • Pay now: This gives shoppers the option to pay through the Klarna app. Shoppers can also earn rewards for every dollar spent via the Klarna App.

Klarna Pay later in interest free installment.

Pay-in-4 (Source: Klarna)

Klarna Pay by months.

Monthly financing (Source: Klarna)

Pay in 30 days Klarna.

Pay-in-30 (Source: Klarna)

Klarna Pay now in mobile view.

Pay now (Source: Klarna)

Customers will incur a late fee is they miss a payment or fail to pay for their purchase. Late fees start at $7 after the first 10 days and go up to 25% of the purchase. Missed payments will also affect customer credit scores.

The Klarna App is where users can manage their Klarna orders, make payments, and shop the Klarna marketplace. Klarna’s marketplace offers exclusive deals and a convenient platform to use your Klarna card and get Klarna’s financing offers.

In the news: In the last few months, Klarna overhauled its app . Changes include:

  • Major redesign
  • A personalized shopping feed powered by artificial intelligence (AI)
  • A self-service advertising platform for retailers
  • Creator storefronts

Klarna Card

The Klarna Card is Klarna’s credit card. Customers can either get the card physically or access it via the Klarna app as a mobile payment option. They can use the card anywhere Visa is accepted—in-store, online, abroad, or with Klarna and non-Klarna merchants.

What makes the Klarna Card special is that it offers 30 days to pay on all purchases with the ability to pay early or extend your window by 10 days—no fees or interest. It is completely free to apply.

What Users Say Klarna Reviews

Overall, Klarna has favorable online reviews, with an average user score of 3.9 out of 5 across multiple review sites. Users often cite the app’s ease of use and convenience. Many Klarna payment reviews also praise the variety of payment methods and online and in-store shopping options.

Negative comments mention inconsistent customer service and difficulty with returns. Some shoppers have also experienced unexplained decreases in their purchase power.

Bottom Line

Our Klarna review finds the app an excellent fit for businesses of any size, particularly retailers that would like to increase revenue and broaden their client base. It offers the widest variety of payment methods and is expanding its reach across the global marketplace. While the number of ecommerce platform integrations is on the smaller side, Klarna does partner with most major sites and does have a custom API integration available. Create a free account today.

About the Author

Brigitte Korte

Find Brigitte On LinkedIn

Brigitte Korte

Brigitte is a retail specialist and staff writer with brick-and-mortar management experience. Before joining FSB, she managed a storefront for several years, working in everything from merchandising, to buying, to sales analysis. Brigitte also has a background in writing, research, and publishing, with an undergraduate degree in writing.

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Advertiser Disclosure

Split any online purchase into 4 installments with Klarna

Pay off purchases over time with a variety of payment plans

Published: April 19, 2021

Emily Sherman

Author: Emily Sherman

Ana Staples

Author: Ana Staples

Why trust us?

Klarna lets users pay for any online purchase in four installments – here’s how it works.

The content on this page is accurate as of the posting date; however, some of our partner offers may have expired. Please review our list of best credit cards , or use our CardMatch™ tool to find cards matched to your needs.

If you are a fan of online shopping , you might have heard of one of the many alternative payment solutions popping up recently. New services are allowing shoppers to finance their online purchases for low or no interest, making it easier to pay off large purchases over time.

One of the largest services currently available is Klarna. Klarna has gained popularity for allowing consumers a variety of payment options with their favorite retailers. Now, shoppers can use the app to pay off their purchases in four installments for no interest, delay payment on purchases for 30 days or apply for six to 36-month financing plans with competitive interest rates. Offerings vary by merchant, but no matter which of these payment plans is available, they all provide a new level of flexibility to online shopping.

See related:  Best credit cards for large purchases

Klarna review: How it works and key things to know

What is klarna, pay in four installments, apply for financing, pay 30 days after purchase, other ways to shop with klarna, pros and cons of paying with klarna, tips for maximizing klarna, other installment plan services.

Klarna is a multifaceted payment solution, offering a variety of unique payment plans designed with online shoppers in mind. Through partner retailers, Klarna users can qualify for interest-free installment plans or flexible financing options – depending on the merchant.

Alternatively, the Klarna app allows users to make a purchase with any online retailer and take advantage of an interest-free installment plan – allowing users to test products without worrying about the cost up front.

How Klarna works

Klarna offers a few different kinds of payment solutions, each with their own functionality. The service partners with thousands of online retailers, each of whom offers one or more of three Klarna solutions. The Klarna app works a little differently, allowing customers to shop with any online retailer they can think of and pay with an installment plan. Read on to learn more about each kind of payment plan.

The first of Klarna’s payment solutions is also the most versatile, since you can use it with nearly any online retailer. With this payment plan, users pay for their purchases in four equal installments spread over six weeks. The first payment is due when your order ships, with the other three payments automatically scheduled at two-week intervals thereafter.

There are a couple of different ways to take advantage of this solution. Klarna partners with dozens of online retailers, who might offer an installment plan in their checkout platform.

Using Klaran installment plan at checkout

You can also shop through the Klarna app at any online store you can think of. If you want to take advantage of an installment plan, Klarna gives you a “ghost card” with a  virtual card number to input at checkout. You’ll be charged four equal installments on the card you have linked to the app.

Alternatively, you can download a Chrome extension that will allow you to use the four-installments option at any online retailer.

Klarna ghost card

No matter which way you take advantage of a Klarna installment plan, you won’t be charged any interest on your payments. Additionally, there is only a soft credit check , which won’t affect your credit score.

On the downside, you’ll be charged late fees of up to $7 if your any of your payments do not process on time. Additionally, you’ll be tied to automatically set payment dates based on when you purchase the item, and you cannot alter your payment schedule. Even if you have the money to pay early, you cannot pay off installments ahead of their due date.

Klarna financing plans are another solution offered by partner retailers. The structure of these plans more closely resembles a traditional loan but can vary merchant to merchant.

Klarna financing

In some cases, you can be preapproved for Klarna financing plans, which won’t trigger a hard pull to your credit. However, most Klarna financing requires an application complete with a credit check, which will result in a hard pull of your credit report. That means you’ll need to carefully consider how a financing plan will affect your score before choosing this option.

Klarna financing terms come in three types, depending on what the retailer prefers to offer – detailed below.

  • Flexible month-to-month : With this option, the retailer will offer you a standard interest rate and minimum payment, like with a credit card. You then are responsible for designing your own repayment plan (though we recommend paying off your balance quickly to avoid accruing significant interest).
  • Planned payments : With this plan, you’ll receive a fixed repayment schedule and interest rate, with typically competitive APRs. You are then responsible for making the predetermined payment each month.
  • No interest if paid in full : Deferred repayment terms allow you to pay off your purchase over time with no interest. As this is a deferred interest financing option, however, you’ll be charged interest for the entire repayment period if you don’t pay in full in the allotted time. This plan will also require a minimum payment.

Both planned payments and no-interest-if-paid-in-full plans range from six to 36 months. Carefully read the terms and conditions provided by the merchant before beginning a Klarna financing plan, so you can identify which kind of repayment structure it is offering and plan out your monthly payments.

This Klarna payment solution is particularly unique, as it allows users to try out their purchase before they’ve paid. Among partner retailers, the ability to pay 30 days after you order your item seems to be offered less frequently than other Klarna solutions – but it can be incredibly valuable if a merchant you like supports the option.

Klarna pay after 30 days

When you choose to pay later with Klarna, you won’t be charged upfront for your purchase. Instead, you’ll have 30 days from when the item ships to make your payment or return the item. You’ll receive email reminders from Klarna of your due date to ensure you don’t miss it. Plus, you aren’t charged a fee or interest for using this feature.

Just like with installment plans, the pay-later Klarna solution charges a late fee of up to $7 if you don’t pay by your due date.

Klarna is also available to use in-store in more than 60,000 physical stores at brands like Sephora, H&M, Macy’s and more.

Klarna offers variable payment plans that can be incredibly valuable for shoppers looking to pay off large purchases over time, but like any payment solution, it comes with pros and cons.

  • Installment plans and pay-later purchases allow you to pay over time without accruing interest or affecting your credit score.
  • You can pay for any major purchase over time by shopping through the Klarna app. Other payment services work with a limited list of retailers.
  • Unlike some other installment plan services, Klarna accepts American Express and Discover cards.
  • Financing plans can trigger a hard pull on your credit and might have a higher interest rate.
  • You can’t customize your payment due dates on an installment plan.
  • You can’t pay early for an installment if funds free up.
  • Pay-later payment options are limited.
  • You can’t pay with a prepaid card.

To get the most out of the Klarna service, keep the following tips in mind.

Shop through the Klarna app

Since the Klarna app offers a virtual card to make any online payments with an installment plan, you can split up any large purchase you can think of by shopping through the platform.

Use a rewards card as your primary payment method

Klarna accepts all major credit cards to make your payments, so use a rewards card that earns cash back or miles to maximize the benefits from your purchase.

Another way to maximize rewards is to join Klarna’s free loyalty rewards program  Vibe . You can earn Vibe rewards when using Klarna for purchases and double stack with other rewards programs you have. For example, if you use Klarna to buy an item at Sephora, you’ll earn both Vibes and Sephora points.

Always make your payments on time

If you make a late payment, you’ll be charged a fee of up to $7. But on top of that, you’ll be less likely to be approved for future installment plans or financing.

Avoid taking on several installment plans at once

When you split up large payments into smaller installments, it can be easy to forget how much you are actually spending. Keep careful track of the Klarna installment plans, financing options and pay later purchases you have open and avoid taking on more than you can pay off.

  • Pay over three, six or 12 months (up to 39 months at select stores).
  • APR range: 0% to 30%, based on credit check.
  • Down payment may be required for some users.
  • No late fees or loan limits, but your loan might be limited based on credit history.
  • Pay in four equal installments, spread over six weeks.
  • Zero interest and no fees when you pay on time.
  • 25% of the balance is due at the time of purchase.

Verdict: Should you use Klarna?

Klarna is one of the most flexible alternative payment solutions on the market, offering a variety of different payment plans and allowing customers to shop with any online retailer and pay in installments. If you have a large purchase coming up that you’d like to pay over time with no interest, consider downloading the Klarna app to split any payment over six weeks.

Editorial Disclaimer

The editorial content on this page is based solely on the objective assessment of our writers and is not driven by advertising dollars. It has not been provided or commissioned by the credit card issuers. However, we may receive compensation when you click on links to products from our partners.

Emily Sherman is a senior editor at CreditCards.com, focusing on product news and recommendations. She is also one of the founders of To Her Credit, a biweekly series of financial advice by women, for women. When she's not writing about credit cards, she's putting her own points and miles to use planning her next big vacation.

Ana Staples is a staff reporter and young credit expert reporter for CreditCards.com and covers product news and credit advice. She loves sharing financial expertise with her reader and believes that the right financial advice at the right time can make a real difference. In her free time, Anastasiia writes romance stories and plans a trip to the French Riviera she'll take one day—when she has enough points, that is.

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Klarna Reviews – Pros and Cons in 2024

The average American is drowning in $5,525 of high-interest credit card debt.

This means that if you need to borrow money, you’ll have to go into more debt, and it will likely take multiple years to pay off.

But buy now, pay later platforms like Klarna can help. 

Klarna lets you borrow up to $10,000 in personal loans . And most of their loans are interest-free! 

So if you’re sick of high-interest debt, keep reading. 

Below, I provide you with an in-depth explanation of what Klarna is, how it works, and several Klarna reviews to help you make confident financial decisions. 

What Is Klarna?

Klarna is a buy now, pay later (BNPL) service that has a mobile app, browser extension, and in-store shopping options. 

They offer personal loan options like

  • Six to 24-month loans

Klarna is commonly known for its Pay in 4 payment option, where you can pay 25% of the purchase price at checkout and 25% every second week for six weeks.

This is a convenient choice for anyone looking to make a large purchase without paying interest and fees.

The Pay in 30 payment plan is a practical alternative if you need flexibility. Instead of sticking to a schedule, Pay in 30 allows you to pay for your items anytime within 30 days, interest-free.

Klarna also has traditional personal loans that you can use to buy more expensive items and pay them off over six to 24 months. The interest rate on these loans depends on your credit score but normally ranges between 0% – 28.99%.

Klarna’s user dashboard makes shopping through the app easy

Although I recommend paying for products in full whenever possible, if you’re sure you can pay the installments, Klarna is a good choice.

Tip: Klarna earns money by making your checkout total look smaller and encouraging you to buy more. So be aware of this and avoid using Klarna regularly, as the frequent bank charges can easily become overwhelming.

What Is The Klarna Card?

Klarna also offers the Klarna Card. It’s like a credit card, but shares buy now, pay later characteristics such as zero interest or late fees.

You can use it in-store wherever Visa is accepted, as you would with a regular credit card.

This lets you split your checkout total into four payments. Users posting Klarna reviews also love how low the monthly fee is. It’s $4.99 per month, which is far cheaper than most credit cards.

View of user dashboard for the Klarna card

Once you’ve made a purchase, head to your mobile app, and you’ll find your payment history alongside reminders of when to make your next payment.

What stands out about this card is the rewards. In addition to the points you get after buying products, Klarna encourages you to complete “Missions.” These missions are small tasks in the app that allow you to earn more rewards.

How To Use Klarna

Are you thinking of signing up for Klarna? Awesome! 

Follow this five-step guide on how to use Klarna to get started:

  • Sign up for an account
  • Get approved
  • Buy from your favorite stores
  • Track your order, payment plans, and returns
  • Pay your installments

Step 1: Sign Up For An Account

Sign up for a Klarna account by downloading the app and providing information like your

  • Mobile phone number
  • Email address
  • Current billing address
  • A debit or credit card

Klarna will conduct a soft credit check but don’t worry; this won’t harm your credit score. Also, you can still qualify if you have a zero credit score since Klarna doesn’t have minimum credit requirements.

Step 2: Get Approved

It takes less than 24 hours for Klarna to review your profile, conduct a soft credit inquiry, and approve your account. This short turnaround time can come in handy if you need money fast.

Although, there is a drawback. Like Afterpay, Klarna restricts your card usage and will reject purchases if it thinks you’re buying too much too soon. 

But you can increase your eligibility for purchases by:

  • Building a good payment history
  • Paying off your balances
  • Lowering your checkout cart value
  • Connecting Klarna to your bank account ( Note : this option is only given when Klarna needs a better understanding of your current ability to pay back loans) 

Step 3: Buy From Your Favorite Stores

Klarna works anywhere Visa is accepted. Some of the most popular stores that accept Klarna include:

  • Urban Outfitters 
  • Vivid Seats

Since Klarna works directly with these retailers, you’ll get discounts that are hard to find elsewhere. For example, you can get up to 60% off eyeglasses with Frames Direct by using Klarna. 

Shop at places like Sephora, Wayfair, and Saks Fifth Avenue with Klarna

However, shopping with Klarna can be tricky. Upon checkout, I used to find myself going back and buying more products because my total looked so low. If I was buying something worth $100, I’d only have to pay $25 that day. 

In other words, even though your total seems low today, it doesn’t mean you should buy more than you need. 

As a rule of thumb, I only use Klarna to buy big-ticket items. This limits the frequency of payments, making it easier to manage and pay off my debt.

Step 4: Track Your Order, Payment Plans, and Returns

Once you’ve bought something using Klarna, it’s time to track your order. 

Klarna has in-depth tracking features, so you know exactly where your shipment is.

To enable delivery tracking, head to the “Deliveries” tab and click “Get Started.” Klarna will ask you to confirm your email, and you’ll be able to track, add, and mark orders from your Klarna dashboard. 

You can also return an order through the Klarna app without visiting the merchant’s website. This is a convenient feature if you’re buying from smaller websites with less efficient return policies. 

All you have to do is go to “Orders,” choose the items you want to return, and select “Report Return.” From here, Klarna will automatically adjust your payment plan.

Step 5: Pay Your Installments

With the Pay in 4 payment plan, Klarna sets up autopay for you, so you don’t have to remember to make payments every two weeks. 

But if you choose the Pay in 30 plan, you have the freedom to pay anytime within 30 days of purchase. For example, you can pay your account in full the day after buying something or make four weekly payments.

Klarna also offers longer-term personal loans for up to 24 months. So, it’s a good option if you’re buying big-ticket items like a new couch, refrigerator, or gaming setup that you want more time to pay off.

Klarna has a rewards club that allows you to earn free money every time you shop. Although you only get one point per dollar spent, this can quickly add up if you make large purchases. These points don’t expire, so you can save them for a rainy day or to treat yourself.

Keep in mind that Klarna charges a $7 late fee if you make a payment ten days after your due date. These late fees are capped at 25% of the original purchase amount. 

As always, I’d recommend making your payments on time to avoid extra fees altogether. 

Is Klarna Legit?

Klarna is a legit app, with an average of 4.1 stars on Trustpilot’s online review forum, making it one of the highest-rated buy now, pay later apps. Most customers talk about how secure and easy to use the platform is, while others love Klarna for its diverse range of stores.

I also noticed that the support team responds to all negative Klarna reviews on Trustpilot, in the App Store, and on Google Play store pages. This shows they make an effort to try to resolve issues and ensure customers have a positive experience.

Is Klarna Safe?

With over 23 million monthly users worldwide, Klarna is a safe buy now, pay later platform. 

The Better Business Bureau (BBB) also gives Klarna an A+ rating. So you can have peace of mind knowing there are no unfair business practices going on.

Regarding data safety, Klarna’s privacy policy says they may share your personal data with other companies for marketing purposes. This data includes your location, email address, and device ID.

But according to the GDPR (General Data Protection Regulation), companies must delete all your data if you request. So if you’re uncomfortable with Klarna collecting your data, contact their customer support team to delete it.

Klarna Reviews

Here are some recent Klarna reviews from customers:

positive klarna reviews from trustpilot

I found that most of the bad Klarna reviews talk about poor customer support and decreases in spending limits, so that’s something you’ll want to consider before signing up.

Commonly Asked Questions About Klarna

Klarna vs affirm.

Klarna and Affirm are both buy now, pay later (BNPL) apps, but Affirm charges zero late fees. Affirm also allows you to make purchases worth up to $17,500, while Klarna’s limit is $10,000. So, Affirm gives you access to more credit and no late fees. However, Klarna is available at more stores. 

Can Klarna Be Trusted?

Klarna is a trustworthy buy now, pay later (BNPL) app because it has an A+ rating from the Better Business Bureau (BBB). Klarna also has over a 4-star rating on Trustpilot and responds to both positive and negative Klarna reviews.

Is Klarna Bad For Your Credit?

Klarna doesn’t affect your credit score, but other lenders can see your Klarna on-time payment history or unpaid balances. So, Klarna can help you qualify for larger loans in the future if you’re a responsible consumer.

How Does Klarna Work?

Klarna allows you to shop on credit and pay back your loan interest-free. They offer loan options for 30 days, six weeks, and even up to 24 months. To start using Klarna, sign up for an account, and once you’re approved, buy products, and pay your installments on time.

Is There A Downside of Klarna?

Klarna makes your total look smaller upon checkout, encouraging you to buy more products. These psychological tricks can leave you in mountains of debt if you aren’t aware of them. So I suggest using Klarna occasionally and avoiding it entirely if you have a history of poor spending habits.

Is Klarna A Good Way To Build Credit?

Klarna can help you build a good credit history. Although it won’t boost your credit score, future lenders can view your payment history. And if your payments are always on time or early, it’ll show that you’re a responsible consumer. 

Does Klarna Affect Credit?

Klarna doesn’t report your payments to a credit bureau, so it’s an impractical option if you’re looking to boost your credit score. 

What Credit Score Do You Need For Klarna? 

Klarna doesn’t have a minimum credit score requirement, so you can get approved without a credit history. If you apply for the ​​four interest-free installment payments, Klarna will conduct a soft credit check, but they aren’t looking for a specific credit score; they just want to approve your account.

Is Klarna Better Than Afterpay?

Klarna is a more flexible buy now, pay later (BNPL) app than Afterpay because it offers more payment plan options. With Klarna, you can pay in 4, pay in 30, or choose loans for up to 24 months. This makes Klarna a plan that can be tailored to your financial situation.

What Are Klarna Alternatives?

  • Cushion (read this full Cushion App review to learn more)
  • Sezzle (read full Sezzle review here)
  • Perpay (read this full PerPay review to learn more)
  • Afterpay (read these Afterpay reviews to learn more)
  • Affirm (read these Affirm reviews to learn more)
  • Zilch (read this full Zilch review to learn more)
  • Nelo (read this Nelo review to learn more)
  • Zip (read these Zip reviews )
  • PayPal Pay in 4 (read these PayPal Pay in 4 reviews to learn more)
  • Splitit (read this Splitit review to learn more)
  • Apple Pay Later (read this Apple Pay Later review to learn more)
  • Sunbit (read this Sunbit review to learn more)

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Everything You Need To Know About Klarna: How It Works, Reviews, Late Fees

By Nina Bradley

Nina Bradley

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As we do more of our shopping online, retailers want to make it easier for consumers to hit that “Add To Cart” button. Whether through major discounts, free and/or expedited shipping, or other incentives, retailers have to get creative to stay competitive. One of the newest trends we’re excited about is the emergence of all those Buy Now, Pay Later services such as Klarna, AfterPay, Affirm, QuadPay, Sezzle, and PayPal’s Pay-in-4 program. These apps provide an easy way to pay a portion for the purchase upfront, receive it, and pay the balance over a period of time. 

Think of it as Layaway 2.0 . (Except way better, because you get your items immediately.)

Payment platforms like Klarna break down your total purchase price into smaller and more digestible payments — a structure that can appeal to younger, savvy shoppers on a budget. And who isn’t on a tight budget these days? Although there are many financial tech companies offering buy now, pay later programs, we’ve decided to take a closer look at one in particular in today’s review: Klarna .

What Is Klarna?

Based in Sweden, Klarna provides payment solutions that make purchasing simple and safe for buyers and sellers. It specifically assists in making point-of-sale purchases by offering no-interest loans that allow consumers to buy now and pay later at thousands of stores around the world.

Klarna’s website explains, “We partner with retailers all over the world to make it easy to pay how you like right from checkout. Or, you can use our app and enjoy flexible payment options anywhere online.” For example, let’s say you have your eyes on a pair of designer sneakers that cost $750. Klarna customers can have the shoes delivered immediately but pay for the shoes with a series of smaller payments over a period of several months.

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Klarna’s website explains it this way: “Split the cost of your purchase into 4 interest-free payments, paid every 2 weeks. No interest. No catch.”

How Does Klarna Work?

Klarna is an app that allows you to make purchases without full payment upfront. When initiating the purchase, you pay 25% of the total order and receive the items, which are shipped immediately. You then make 25% payments every two weeks thereafter until the entire balance is paid in full. Think of it as the reincarnation of layaway. However, this time you get to take your items with you immediately.

For example, if you make a $100 purchase, you would pay $25 at checkout. The three remaining $25 payments would be billed to your debit or credit card every two weeks until you’ve paid the full $100. Sounds amazing, right? Yeah, we think so too.

Of course, there are late fees for missed payments. We’ve outlined the company’s late-fee policy below. In general, if you miss a Klarna payment, a late fee of $7 will be added to your next bill (plus the cost of your missed payment).

Spy’s Review: We Tested Klarna, And We’d Use It Again

Below, I’ll answer some common questions about Klarna. Before joining Spy as an E-Commerce Editor, I personally used Klarna (and other Buy Now, Pay Later services) at several retailers without issue. The initial approval process took mere minutes, allowing me to sign up quickly without any hard inquiries to my credit profile.

Klarna started me off with a limit of $600 and began increasing it gradually once I showed financial responsibility through on-time and sometimes early payments. I have used it with several retailers without issue, most frequently with ASOS, Macy’s and DSW, and I can tell yoou that the shipping of my items remained the same as it would if I had used a credit card. So in my experience, Klarna works as smoothly as promised.

When using it at ASOS, I was able to apply coupons as normal and take full advantage of the ASOS Premier 2-day shipping  that I purchased from the retailer a while back. 

As far as returns are concerned, the process was just as easy, if not easier, than the purchase itself. A return to ASOS (following their return guidelines) resulted in a full refund to the debit card that was used to purchase through Klarna. I also returned an online purchase from DSW in-person at a physical location and the process was just the same — a full refund to the debit card that I had used during my purchase with Klarna.

I’ve only made purchases directly from the retailers through the Klara app. However, they also have a browser extension that will allow you to easily “pay in four” on your desktop or laptop. You can also use the app for in-store purchases at just about any retailer. 

The Verdict: From my personal experience, I can truly say that the Klarna platform is safe, quick and simple to use . It allows me to fill my cart up with items that I can try before I actually buy while initially paying a fraction of the price. That said, I’ve pretty much become obsessed with using the app to buy purchases when I’m short on cash, unsure about sizing, or just trying to make my purchase price feel a bit more palatable.

Read on to learn more about exactly how Klarna works for consumers, retailers, and the company itself.

Does Klarna Run A Credit Check?

When it comes to a credit check, Klaran’s website notes, “We do not always perform a credit check on you, nevertheless, as a responsible lender, we want to make sure we’re helping our customers make the right financial decisions for their circumstances. When a credit check is performed, we verify your identity using the details you provided and we look at information from your credit report to understand your financial behavior and evaluate your creditworthiness.”

They never perform a credit check during the signup process or when downloading the app. They may perform a soft check when deciding whether to let customers pay in 4 interest-free installments or in 30 days.

Can You Use Klarna In-Store?

Yes, Klarna can be used to make payments in-store. Simply select the retailer, set a spending budget, and view your payment plan. Add the one-time card to your Apple or Google wallet, and tap to pay. That being said, not all retailers accept Klarna, so check with the store before trying to pay with Klarna at the register.

What’s The Catch To Using Klarna?

There is no catch that we’ve found, although you should understand the late fees and non-payment penalties, which we’ve outline below. As an alternative to credit cards, this Buy Now, Pay Later service allows you to shop when you want and pay the balance in four smaller payments over time. The company charges no interest or fees as long as payments are made on time. A tagline on the fintech company’s page reads, “Klarna is the smoothest & safest way to get what you want today and pay over time. No catch. Just Klarna.”

What If I Miss a Payment with Klarna? Does Klarna Charge Late Fees?

Klarna does charge late fees if your payment is not processed on time. Their website reads, “If we are unable to collect a biweekly payment on the scheduled day, we will try again. If the payment is unsuccessful when we retry, a late fee of up to $7.00 and the missed payment will be added to the next scheduled payment.” According to Klarna , “Late fees will never exceed 25% of your order value. To keep you in the loop, we’ll send you an email notification if your payment was unsuccessful.”

What Happens If I Need To Return A Purchase?

Returns are simple with Klarna. All you have to do return the product according to the retailer’s return policy. The process is easy to handle within the app using the “Report a return” feature to pause your payments while the return is in process.

If the retailer offers full refunds, the money for your returned items is immediately credited back to the original payment method. If it’s a partial return or partial refund, the credit will be applied to the remaining balance. If the partial refund was more than the remaining balance, then the amount will be automatically refunded to the original payment method.

For example, if you placed an order for $200 and paid the first installment, then a refund of $75 is issued, the refund will be equally deducted from the upcoming payment installments. This means that the second, third, and fourth installments will be $25 each going forward.

*Remember that all returns are subject to the store’s return policy.

What Stores Accept Klarna?

Thousands of stores accept Klarna both online and in-store. Klarna also allows you to create a “one-time card” that can be used at any online retailer(see below). Here’s a listing of some of the more popular retailers that accept Klarna directly:

  • Alternative Airlines
  • Bloomingdales
  • Canada Goose
  • Golf-clubs.com
  • Macy’s
  • Turkish Airlines

What Is Klarna’s One-Time Card?

 Klarna also has an option that lets you create a “one-time card” that can be used at any online retailer. Their website notes, that the one-time card is a “virtual single-use card to use for shopping at any US-facing online store.” The single-use card can be used just about anywhere. However, Klarna states that they sometimes decline certain transactions to “promote financial wellness and best meet our regulatory, ethical, and risk standards.” 

These purchases include payments for:

  • Bill or rent payments
  • Food or delivery services
  • Gift card providers
  • Governmental agencies
  • Medical care
  • Online gaming or gambling
  • Rideshare services
  • Subscription services
  • Selling of drugs or alcohol

How Does Klarna Make Money?

Although it sounds too good to be true, Klarna does not charge interest or fees for its standard Pay in 4 payment options. It makes money from retailers by charging them a transaction fee on your purchase.

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For SPY, Nina creates shopping guides and roundups on the latest home goods, grooming and beauty products, deals, and seasonal events. She's worked as an entertainment writer for BDG and Wetpaint and…

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Buy now pay later services (also known as BNPL) have catapulted in popularity within the past few years, offering shoppers a new and interest-free type of credit line that’s not tied to a typical credit card. Klarna is a BNPL platform with more than 25 million users in the U.S. and 147 million worldwide.

This review takes a deep dive into Klarna’s history, how it works, and some potential pitfalls of this service.

What is Klarna?

How does klarna work, klarna payment plans, pros and cons of klarna, what are the benefits of klarna, what are the downsides of klarna, faqs about klarna, alternatives to klarna, how to apply with klarna, the final word on klarna.

Klarna is a BNPL lender that lets you make a store purchase today and  pay over time through one of several payment plans. The company was founded in 2005 in Stockholm, Sweden, and works with a network of 400,000 merchants.

Retailers that offer Klarna at online checkout include well-known brands such as Calvin Klein, H&M, Adidas, Bloomingdales, and more. But Klarna isn’t just for online shopping. You can use the service as an in-store payment method as well.

You need to be at least 18 years old with a positive payment history to use Klarna. If you make a purchase and aren’t satisfied with the item, the merchant will provide return instructions, and then Klarna will refund your bank account and adjust your plan payments.

There are four main ways you can use Klarna to make purchases.

  • Shop directly at online stores. Choose Klarna as the payment option when you check out from a participating online store. Payments will automatically be authorized using the credit or debit card connected to your Klarna account.
  • Shop with a virtual card. If you don’t see Klarna as a payment option at checkout, you can request a virtual one-time card from the Klarna app to pay for merchandise wherever prepaid cards are accepted.
  • Shop in the app. Log in, shop with merchants, and set up payment plans directly within the Klarna shopping app.
  • Pay in the store. Log into your Klarna app and tap “pay in-store.” Then find the store where you want to shop and create a digital card. Connect that card to your digital wallet and pay at the checkout counter.
  • Use the Google Chrome extension. Use Klarna’s Google Chrome extension to check out at online stores in a few clicks.

Pay in 4 is a popular option that lets you break up payments for purchases into four installments with no interest. Klarna will perform a soft credit check in order to see whether you qualify.

Your first payment will be due when you check out, with the remaining three payments due every two weeks. For example, if you go on a shopping spree that totals $300, you would have an upfront payment of $75 when you checkout and then make payments of $75 every two weeks. Klarna also charges a late fee of 25% (up to $7) for missed payments.

Klarna’s Pay in 30 option sends you an invoice for your purchase that you will have to pay within 30 days. Pay in 30 also offers interest-free payments, but you could be declined for another payment plan if you don’t pay by the due date. Klarna uses a soft credit check in its Pay in 30 plan approval process.

Klarna offers financing for up to 36 months on certain purchases. Interest applies to this payment option with an annual percentage rate of 0%-29.99% (as of May 31, 2023). Unlike the payment plans above, Klarna may perform a hard credit check to approve your application.

  • Make purchases and pay them off over time
  • Payments are interest-free unless you choose financing
  • Applying usually doesn’t involve a hard credit check
  • Many big-name brands accept Klarna as a form of payment
  • Multiple payment plans could strain your budget
  • Interest for financing options could be high
  • Plans are not completely free and charge for late payments

Klarna could be a smart option for one-off purchases. Maybe you need a laptop, and you don’t want one shopping trip to eat up your entire paycheck. Klarna’s Pay in 4 plan would let you spread out those payments without having to worry about interest charges.

If you don’t have the credit to qualify for a credit card (or you prefer not to have one), Klarna provides an alternative way to finance large purchases. Klarna also has a rewards program where members get access to exclusive offers and earn one point for every $1 spent that can be redeemed for rewards, such as gift cards or vouchers for your favorite retailer or service.

Klarna doesn’t give you a credit limit. Instead, each repayment plan is offered on a case-by-case basis, so you’re a bit in the dark about what purchases will or won’t qualify. Using Klarna may not work for you if you’re struggling with personal finances and trying to  get out of debt .

Not making payments could also result in expensive late fees. If you have limited or no credit and want to build credit, using a secured credit card to make and pay off purchases could be a smarter way to improve your score.

Is Klarna legit?

Klarna is a legitimate company that’s been around for over a decade, despite becoming popular within just the past few years. The company has 5,000 employees, handles two million transactions per day, and has 147 million users worldwide. Klarna processes payments through secured connections and doesn’t store your information.

Klarna has also been accredited by the Better Business Bureau since 2015, but customer sentiment about Klarna isn’t very positive. Many customers have complaints about trouble with payments and frustrations with getting issues fixed. However, the company gets 4 out of 5 stars on Trustpilot and many customers report better experiences.

Is Klarna bad for your credit?

The popular Klarna Pay in 4 and Pay in 30 payment options won’t affect your credit score because they only involve soft inquiries, which don’t get reported to credit bureaus. However, applying for certain Klarna financing could show up on your credit report if a hard inquiry is performed.

Even if there is no credit check, one risk of BNPL services is how payments could impact your budget. If keeping up with payments makes you fall behind on other bills, those unpaid bills could impact your credit. While using pay over time services may not affect your credit directly, new payment obligations could create an additional financial burden.

Affirm is similar to Klarna in that you can pay in four interest-free installments every two weeks or choose a longer-term loan with monthly payments. Interest for the longer-term loan is up to 30.00% APR, which is higher than what Klarna offers. You also need to shop first and then apply for Affirm financing at checkout.

With Afterpay, you can pay in four installments over six weeks with no interest. Unlike Klarna, Afterpay’s spending limit starts out at $600 and increases once you prove that you can keep up by making on-time payments.

American Express

American Express offers Plan It, a feature that lets cardholders split up purchases of $100 or more into installments with a fee. You can sign up for Plan It by logging into your card account and clicking on qualifying statement purchases. Payment terms may range from three to 24 months. Some eligible American Express cards include:

  • Blue Cash Everyday ® Card from American Express
  • Blue Cash Preferred ® Card from American Express
  • American Express Cash Magnet ® Card

All information about American Express Cash Magnet ® Card has been collected independently by FinanceBuzz.

PayPal Credit

With PayPal Credit, you can pay off purchases of $99 or more over six months with no interest. Although you get more time to pay off your balance compared to Klarna, this is a deferred interest rather than an interest-free offer. That means if you don’t pay off the credit within six months, you’ll be charged retroactive interest from the purchase date.

Perpay is an online shopping marketplace that lets you pay in installments from your paychecks. Perpay doesn't charge interest or fees on your purchase, but you’ll need to make payments with direct deposit. As you use Perpay, the company will continually apply your history towards helping you build credit over time and customers can potentially boost their credit by an average of 39 points.

With Zebit , you can pay for purchases over six months without interest. Your payment frequency is determined by how often you get paid. For example, if you get paid every two weeks, you will pay in 12 installments over six months. Down payments range from 25%-25%.

  • Download the app. The app is available for free in the Apple App Store or Google Play store.
  • Set up your Klarna account. Klarna will ask for your email address and then send you a code to verify your email. This initial process of setting up your account doesn’t involve a credit check.
  • Start shopping. Browse the stores within the Klarna shopping app. If you find a store you like, you’ll be taken to the store’s website within the Klarna app, where you can add items to your shopping cart.
  • Apply for a Klarna payment plan. When you’re ready to check out, you’ll get prompted for Klarna payment options. The payment options available can depend on which store you’re shopping at, how much you’re trying to purchase, and your previous history.
  • Keep track of your payments. After making purchases and setting up payment plans, Klarna’s app offers notifications and features to help you keep track of your orders, spending, and deliveries.

Klarna doesn’t outline specific credit criteria for users, but credit is a factor in getting approved for a payment plan. If you have unpaid balances with Klarna, that could also affect your ability to qualify for additional payment plans. Other factors that may impact approval are your credit history with Klarna and the amount of your purchase.

Klarna may be suitable for smaller purchases, such as sneakers, a purse, or a wedding gift for your best friend. But when it comes to larger purchases, saving up rather than using Klarna’s long-term financing options could save you on interest.

Learning  how to get a loan or credit card with an introductory APR deal could be a better alternative when you need to borrow money for a big-ticket item, such as furniture or appliances. If you have good credit, these options could give you more time to pay off your debt with a lower interest rate.

Some of the  best personal loans have no origination fees, offer low interest rates to qualified borrowers, and have quick application processes. Although Klarna offers a sleek interface for applying for credit, it’s not the only way to get quick money when you need it, so be sure to explore your options.

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Klarna Considers Aiming for $20 Billion Valuation in IPO This Year

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Gizmodo

Klarna CEO Boasts His AI Can Do Work of 700 People After Laying Off 700 People in 2022

P raising AI for how well it can do the equivalent of 700 human jobs in one sentence and warning about its impact on humans in another is a bit weird.

Klarna CEO Sebastian Siemiatkowski bragged on Tuesday that his company’s new OpenAI-powered customer service chatbot was doing the work of 700 people—nearly two years after Klarna laid off about 700 people.

In a post on X , Siemiatkowski called the work of Klarna’s AI assistant a “breakthrough in the practical application of AI!” The CEO explained that in the chatbot’s first four weeks, it had handled about 66% of its customer support or about 2.3 million chats. Klarna announced its new chatbot in a press release on Tuesday.

Klarna’s chatbot scored equivalent in customer satisfaction when compared to humans and also exceeded humans in some cases, according to Siemiatkowski, reducing repeat inquiries and resolving problems in 2 minutes versus 11 minutes when compared to humans.

“It performs the equivalent job of 700 full time agents,” Siemiatkowski, who leads one of the world’s biggest buy now, pay later companies , said. “So while we are happy about the results for our customers, our employees who have developed it and our shareholders, it raises the topic of the implications it will have for society.

Specifying the number of human jobs that could be done by AI didn’t seem to be a good decision on Siemiatkowski’s part, however. Fast Company quickly pointed out that Klarna just so happened to have laid off approximately 700 people in 2022 , which raised questions over whether the company had replaced those workers with AI.

Klarna told Gizmodo in an email on Wednesday that the company’s new AI chatbot was “in no way connected” to its workforce reductions in 2022.

“We have not made any cuts as a consequence of launching this AI assistant. Klarna’s customer service is supported by 4-5 large global partners who collectively have over 650,000 employees and work with thousands of different companies around the world,” Klarna global policy and communications lead Filippa Bolz said. “When one of the companies, like Klarna, requires less support, these agents are assigned to new tasks at another company.”

To his credit, Siemiatkowski also pointed this out in his post on X, though he did not explain why the company felt the need to equate AI work to human work or how it made its calculations.

“We chose to share the figure of 700 to indicate the more long-term consequences of AI technology, where we believe it is important to be transparent in order to create an understanding in society. We think it’s important to proactively address these issues and encourage a thoughtful discussion around how society can meet and navigate this transformation,” Bolz said.

While AI didn’t take any jobs away from humans at Klarna in this case—whether that remains true at its third-party partners remains to be seen—it still feels a bit tone-deaf to praise AI and specify exactly how many human jobs it can do in one paragraph and warn about the implications on people affected by AI in another.

As Siemiatkowski said, there are humans affected by this technological shift, which means we should try to act like humans in our response instead of heartless machines.

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    Reviewed by Colin Hogan | Nov. 28, 2023 Company Overview Customer Service Personal Loan APR up to 29.99% Loan Term 24 months Company Overview Klarna is a financial technology company that...

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    Pros and Cons Key Takeaways Company Overview Customers who want multiple options for BNPL should consider Klarna. This app offers Pay in 4 financing with no interest or fees, as long as you pay...

  7. Klarna Review

    Insider's Rating 4/5 Regular Annual Percentage Rate (APR) 0% Recommended Credit N/A Show Pros, Cons, and More The bottom line: Klarna offers multiple repayment options — including ones that don't...

  8. Klarna review: should you use a buy now, pay later service?

    10.07.21 (updated more than 1 year ago) 7 minute read If you're new to buy now pay later services, you may well be wondering about how Klarna¹ works as a financing option. This review will cover key information - including questions like how does Klarna work, is Klarna safe?

  9. Klarna Buy Now, Pay Later: 2024 Review

    5.0 Customer Experience 4.3 About Bankrate Score Klarna's pay-in-four payment plan is a buy now, pay later (BNPL) service that doesn't charge interest. It offers three repayment options: pay in...

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    The Ascent Personal Finance Klarna Review: Split Up Big Purchases Into More Affordable Payments Review Updated Feb. 22, 2023 By: Lyle Daly Our Personal Finance Expert Many or all of the...

  11. Klarna Review: Buy-Now, Pay-Later Credit

    Klarna review: Buy-now, pay-later credit for online purchases Written by: Sarah Sidlow • Updated December 14, 2022 • 6 min read In a Nutshell The Klarna app lets shoppers make purchases from U.S. retailers and pay them off later. You can pay in installments or get extra time to pay off a big purchase.

  12. Klarna Reviews

    1 review US A day ago Invited This service has been amazing This service has been amazing. I've accomplished so many of my goals using these payment plans (as I've used Klarna many times) while furnishing my business and building my office space. Super easy and convenient. Date of experience: 24 February 2024 MM Monica Moreno 5 reviews

  13. Klarna Review: How Does It Work?

    Klarna Review: How Does It Work? Written by Christopher Smith | October 12th, 2021 Home Money & Credit Why You Can Trust Clark.com Trusted source for financial advice for more than 30 years. Never paid to promote anything. Never influenced by commissions. Real people who are ready to serve you.

  14. Klarna Review: How it Works, Pricing & Features

    What Users Say Klarna Reviews. Overall, Klarna has favorable online reviews, with an average user score of 3.9 out of 5 across multiple review sites. Users often cite the app's ease of use and convenience. Many Klarna payment reviews also praise the variety of payment methods and online and in-store shopping options.

  15. Klarna review: How it works & how to get approved

    Klarna is also available to use in-store in more than 60,000 physical stores at brands like Sephora, H&M, Macy's and more. Pros and cons of paying with Klarna. Klarna offers variable payment plans that can be incredibly valuable for shoppers looking to pay off large purchases over time, but like any payment solution, it comes with pros and cons.

  16. Klarna Buy Now, Pay Later Review

    Klarna pros and cons. The idea behind buy now, pay later is similar across companies, but each has its own unique perks and drawbacks. Here's what we found during our Klarna review. Pros. Cons. No interest on most plans. Instant financing approval. No hard credit check for most types of financing.

  17. Klarna Reviews

    Klarna Reviews - Pros and Cons in 2024 By Maddy Scheckel January 19, 2024 Spending Want to shop but don't have enough money in your account? Not to worry! Learn everything you need to know about Klarna's buy now, pay later (BNPL) app. The average American is drowning in $5,525 of high-interest credit card debt.

  18. Review: I Tested Klarna, and I've Got Answers To All Your Questions

    Think of it as Layaway 2.0. (Except way better, because you get your items immediately.) Payment platforms like Klarna break down your total purchase price into smaller and more digestible payments — a structure that can appeal to younger, savvy shoppers on a budget. And who isn't on a tight budget these days?

  19. Klarna Review 2023: Buy Now, Pay Later With This Service

    Klarna will perform a soft credit check, which does not affect your score, when using the majority of its services, including Pay in 4 and Pay in 30 Days. However, Klarna will perform a hard credit check when you apply for a Klarna Financing Account. Klarna does not report on-time payments to credit bureaus and will not help you build credit.

  20. Klarna Review [2024]: Pay Over Time with No Interest

    In this Klarna review What is Klarna? Klarna is a BNPL lender that lets you make a store purchase today and pay over time through one of several payment plans. The company was founded in 2005 in Stockholm, Sweden, and works with a network of 400,000 merchants.

  21. Klarna Credit Card 2024 Review

    Updated: Jan 10, 2024, 3:19pm Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. Our Verdict If you're...

  22. Klarna Reviews

    Klarna Review. Reviewed a year ago. klarna has made paying in installements without interest very simple and keeps all information secure. Pros. klarna is an easy and secure way to pay online in installments when it is more convenient for the buyer. i use this often, along with afterpay as these are similar and not always offered on the same ...

  23. Klarna Review: Is it safe and does it affect my credit score?

    By Damien Fahy 9 min Read Published: 21 Nov 2023 Klarna is at the forefront of "buy-now, pay-later" and is the current market leader in the UK. It offers point-of-sale credit to consumers, allowing them to spread the cost of purchases. For most of its services, the short-term debt is interest free.

  24. Klarna in Talks With Banks for US IPO at $20 Billion Value

    Klarna Bank AB, the Swedish fintech that was once Europe's most valuable startup, is moving forward with plans for a potential US listing that could be one of the largest listings this year ...

  25. Klarna Considers Aiming for $20 Billion Valuation in IPO This Year

    Klarna is having detailed discussions with investment banks for an IPO could happen as soon as the third quarter, Bloomberg reported. The company is "considering seeking a valuation of around $20 billion," according to the report, which cited people familiar with the matter. A Klarna IPO would be a key step for the Swedish fintech company that was valued as high as $45.6 billion in 2022 but

  26. Klanra CEO Boasts His AI Can Do Work of 700 People After Laying ...

    P raising AI for how well it can do the equivalent of 700 human jobs in one sentence and warning about its impact on humans in another is a bit weird.. Klarna CEO Sebastian Siemiatkowski bragged ...