What is Klarna and how does it work? Let’s delve into the details to see when and who uses it, as well as costs, fees, pros, cons, and refund options.
Online shopping has become an integral part of daily life for millions of people around the world. Among the various payment methods available, some solutions stand out for their simplicity and flexibility, allowing you to manage your expenses more conveniently than traditional card or bank transfer payments.
One such solution is Klarna, a Swedish platform now available in over 45 countries, which offers the option of paying immediately, in interest-free installments, or after a set period of time, both online and in some physical stores. In this guide, we’ll explore how Klarna works, who uses it, its costs and payment methods, its main advantages and disadvantages, as well as how to request refunds or contact customer support.
What is Klarna
Klarna defines itself as a Buy Now, Pay Later (BNPL) platform. In essence, Klarna acts as an intermediary between the customer and the store, paying the merchant immediately, while the user decides how and when to pay the balance, choosing between deferred or installment payment options.
In addition to offering more flexibility than immediate payments, Klarna allows you to speed up checkout, increase transaction security, and conveniently track each purchase through the official app. Here, users can monitor due dates, installment summaries, notifications, and manage any returns.
How Klarna Works
Klarna offers various payment solutions designed to meet different needs.
The most popular is "Pay in 3 Interest-Free Installments," which divides the total amount into three equal monthly payments. The first installment is debited immediately, while the other two installments follow every thirty days. There are no additional costs, as long as the payment deadlines are met. This is a useful solution for medium-sized purchases, allowing you to reduce your expenses without resorting to traditional financing.
The second option is immediate payment, which is equivalent to paying the full amount at the time of ordering. In this case, Klarna acts as an intermediary, offering an additional level of security and monitoring, without altering the traditional payment experience.
The "Pay after 30 days" option is also very popular, allowing you to receive the product and verify it before paying. The customer has one month to decide whether to keep or return the goods and pay the total amount interest-free.
In addition to these shorter options, Klarna also offers a monthly installment financing option designed for larger purchases. Unlike paying in three installments, this financing includes interest and a payment plan that can typically extend over 6 or 12 months.
For each payment method, Klarna performs an internal credit assessment. This check is used to ensure proper use of the service and may result in the order being rejected in the event of inconsistencies in the data, previous delays, or amounts deemed excessive.
Who uses Klarna and when is it worth it
Klarna has gained popularity especially among younger consumers, particularly those aged 18 to 35. Students and young workers appreciate the ability to spread expenses interest-free and without having to resort to bank loans. However, an increasing number of adults are choosing Klarna because it allows them to spread their spending easily and with highly intuitive management via the app.
Businesses also find advantages in adopting Klarna. Offering installment payments increases the likelihood of completing a purchase and often leads to higher average cart sizes. Consequently, many e-commerce businesses, from fashion to electronics, have integrated this platform as an alternative payment method.
Klarna is especially suitable for those who want to better manage their budget, those who prefer to inspect goods before paying for them, or those who want to spread an interest-free expense. However, it may be less suitable for those who tend to make impulse purchases, as the ease of deferring payments could lead to unwise use.
Costs and fees
For private users, Klarna is generally free if the deadlines are met. Fees only apply for late payments or when using financial services other than the traditional three-part or deferred payment plan. Late fees vary by country and are designed to incentivize punctuality and correct use of the service. As stated on Klarna’s official website:
"Pay Now, Pay after 30 days, and Pay in 3 installments are always interest-free. There are no late fees if you pay on time. If you choose financing or miss a payment, interest or fees may apply. Always check the terms of your payment plan to find out what costs you may incur if you miss a payment."
Accepted Payment Methods
Klarna supports various payment methods to adapt to user needs. Among the most popular are:
- debit and credit cards (Visa, Mastercard, American Express);
- some prepaid cards, depending on the store;
- direct debit from your bank account, where available;
- digital methods such as Apple Pay and Google Pay in stores that support them.
Installments are automatically deducted from the registered method, avoiding delays due to forgetfulness.
Original article published on Money.it Italy. Original title: Cos’è Klarna, come funziona e come pagare
