Multiple retailers have started offering flexible financing and monthly installment payment plans through third-party ‘buy now, pay later’ apps such as Klarna, Affirm, Afterpay, and even PayPal has its own solution called Pay in 4. In this guide, Pocket-lint is specifically covering how Klarna works, which sites and stores accept it, what you can buy with it (like AirPods or Apple Watches), and whether it has any credit requirements, hidden fees, and interest.
What is Klarna?
Klarna is a ‘buy now, pay later’ service (or a point-of-sale financing service) founded in Sweden in 2005. It’s available in nearly 20 countries and used by approximately 90 million shoppers. With Klarna, you can secure small loans at checkout for both online and in-store purchases through the Klarna mobile app. It works with popular retailers, such as Apple, Macy’s, Etsy, Foot Locker, and Sephora, allowing you to make affordable payments on big-ticket items.
How does Klarna work and is a credit check required?
First, download the Klarna app from theApple App StoreorGoogle Play Store.
How to get started
How to navigate the Klarna app
How to shop online with the Klarna app
How to shop in-store with Klarna
What are the differences between Klarna’s US payment plans?
Klarna offers four payment options, but the thousands of retailers that offer Klarna financing have the discretion to decide which can be available to their customers. Here’s a handy chart that breaks down the differences between each US plan, including the terms, amount due at checkout, interest, and late fees.
Payment plans
Due at checkout
Pay four equal installments - due every two weeks.See legal terms.
Your first installment is due. It’s the balance divided by four.
No interest.
Pay nothing for 30 days, and then pay the full balance.See legal terms.
No late fee. But if you don’t make the full payment, you might go into default.
Pay with a small loan ranging from 6 months to 36 months.See legal terms.
0% to 29.99%; 19.99% for standard purchases.
Pay with your debit or credit card through the Klarna app.See legal terms.
Full balance. This option is ideal when you have extra funds and want to close out your loan.
Not applicable.
Does Klarna require a minimum credit score?
Klarna is often easier to qualify for than a credit card because although it performs a soft credit check, there’s no minimum credit score required.
Does Klarna automatically bill you?
Yes, which is perfect if you have a hard time keeping track of your balance or bills. When you choose a plan, Klarna automatically bills your debit or credit card.
What are the pros and cons to Klarna?
Here’s a quick breakdown of the pros and cons to consider:
Which stores accept Klarna?
Physical stores
Klarna is available to use in-store at more than 60,000 shops, like Sephora, H&M, Macy’s, and more.Go hereto see all the stores that offer Klarna financing.
Online stores
Klarna is available at just as many, if not more, online retailers, like Amazon, Walmart, and Apple.Go hereto see all the stores that offer Klarna financing.
Are there alternatives to Klarna?
There sure are - such asAffirm,Afterpay, andPayPay Pay in 4.
Is Klarna right for you?
Klarna can help you purchase something you want but can’t pay for upfront. For instance, you can use it at Apple, Best Buy, and other stores that sell the latest tech and electronics. Want an iPad Pro? No problem. Its Pay in 4 or Pay in 30 plans are likely your best bet, too, as they don’t charge interest.
