Klarna Review: Is It the Right ‘Buy Now, Pay Later’ Platform for You?
GOBankingRates Score
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Retail Partnerships
5.0
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Customer Service
4.8
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Security
4.3
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Flexibility
5.0
Pros
- Shop at major retailers and brands while enjoying flexible, interest-free payment terms
- Buy what you want — keep what works, return what doesn't
- Pay on your choice of terms
- Get 24/7 chat support in the app
Cons
- Payment flexibility can lead to impulse buys
- Loyalty rewards, called vibes, expire every year if unused and the account resets to zero
- Secure, one-time cards expire within a day and could be confusing to manage if used too often
What Is Klarna?
Klarna is a digital shopping platform that allows for flexible payment terms. Users can shop in-store, in-app or online. There are a few payment plans available, so a user can select the one that best fits their needs and preferences, including the option to buy now and pay later.
Klarna Features
Here’s a look at some of the features that Klarna offers its users.
Choose From 3 Payment Plans
Klarna offers its customers three ways to pay for items purchased on its platform:
- Four payments: This method splits the purchase into four interest-free payments. After making your first payment at checkout, you’ll have three additional payments, which will be due every two weeks.
- 30 days: This plan gives users a full month to try items on at home, interest-free, and pay for what they keep. Payment is not required at checkout.
- Six- to 36-month financing option: In the event of a larger purchase, such as furniture, Klarna partners with FDIC-insured WebBank to offer longer-range payment flexibility. Payment is not required at checkout, and the annual percentage rate on standard purchases is 19.99%.
Rewards Club
Klarna has its own free-to-join loyalty program for frequent shoppers. Reward points are dealt in vibes. Users earn one vibe for every dollar they spend with Klarna. Vibes add up and can be turned into rewards. Vibe earners have access to exclusive retail offerings, sales and special content. Unique experiences may be added to the mix soon.
One-Time Card
For added security, users who know they’re going to shop with Klarna can create a one-time card. Each card has a unique identifier, just like a regular credit card would. One-time cards expire after 24 hours, and once used, they follow their own payment plans.
Chrome Extension
Klarna for Chrome, the platform’s browser plug-in, allows users to pay in four installments directly from their desktop.
Is Klarna Right for You?
If you like to be on trend but are a work in progress when it comes to knowing what you can afford and sticking to a budget, Klarna can help. Get items to your home, evaluate what works with your wardrobe and current cash flow, and make decisions from there.
Or, for bigger purchases — for example, a parent purchasing a back-to-school wardrobe for multiple children or investing in new furnishings — Klarna’s buy now, pay later approach can provide a gentle way to meet the need of the moment with minimal stress.
Short-Term Financing That Takes Aim at Long-Term Debt
Klarna has chosen to marry the thrill of spending and splurging with a predisposition for caution. For some, this strategy may backfire. For others, it may turn out to be a suitable way to indulge while also getting a chance to take a deep breath and update the budget before hanging that new item in the closet.
Does it work? That’s hard to say, but Klarna is making a good-faith effort to get consumers out from under the hot lights of the dressing room and into slower decision-making from the comfort of home. Regardless of what happens, consumers may stand to benefit from trying programs like Klarna in the hope that more drawn-out decisions and more favorable payment terms will help and not harm.
Klarna FAQ
Here are the answers to some commonly asked questions about Klarna.
