Klarna Reviews: Buy Now, Pay Later

While a somewhat lesser-known buy now, pay later app and platform, Klarna reviews are surprisingly available around the world. That’s due to its availability in at least 11 countries. Klarna began in 2005, making it a respective old-timer in the BNPL game, and its experience pays off when it comes to flexibility and customer satisfaction. Here’s what we learned about Klarna.

Klarna Reviews: Features and Benefits

Klarna holds a spot in our review of the best buy now, pay later providers. The company offers one of the oldest official BNPL apps and is available in multiple countries. However, you’ll have to have the country-specific Klarna app to purchase goods while in, or shopping through, that particular country.

Klarna offers several payment methods for customers, and its fees are few and far between, if any apply to your purchase at all. Here’s a list of other qualities associated with the app.

• Four payment plans are available
• Use online or in stores
• Avoid interest payments with 3 of the 4 plans
• No set spending limits
• Soft credit inquiry only for most uses
• 24-month term borrowing is available
• Lower maximum interest rate than most competitors at 33.99%
• Most fees only apply to making late payments
• A paid membership with benefits is available
• No fees when making payments to Klarna with a credit card

Klarna Reviews: Editorial Rating

Trusted Company Reviews Rating Score for Klarna: 9.3

We awarded Klarna 9.3 points out of 10, judged by our rating criteria. Klarna’s multiple interest-free payment options make it a leader among competitors. As with most BNPL providers, the company performs only a soft credit inquiry for most uses, which won’t affect your credit score or appear on your credit report.

However, Klarna will perform a hard credit check if you opt to use its Pay Over Time feature, which offers payments spread out over a period of between six and 24 months. Klarna doesn’t report to credit bureaus on your behalf unless you miss payments. This is also true of most BNPL providers.

What We Like

It’s not unusual for buy now, pay later providers to offer their customers several ways to pay for purchases, both online and in-store. However, Klarna offers a unique feature that allows you to pay for your purchase upfront and in full through the app. While it may sound strange to do that with an app designed to allow you to spread out payments without paying extra, doing so makes you eligible for several perks.

By choosing the Pay in Full option, you’ll make a secure transaction that features fraud protection and buyer protections similar to those found when using a highly-rated credit card. Additionally, you can earn Klarna rewards and record and manage your spending when using the option.

What We Don’t Like

While most purchases using Klarna don’t have any associated interest payments, some purchases will have a service fee that becomes part of your total cost. The service fees are minimal, between $1 and $2, and apply when you use Klarna at a retailer that isn’t in its network.

About Klarna Buy Now Pay Later

Klarna is a BNPL app that operates in several countries worldwide. The app allows you to choose from four payment methods, including Pay in Full, Pay in 4, Pay in 30 Days, and Pay Over Time for up to 24 months. Klarna accepts customer payments using a credit card, debit card, or bank account. Pre-paid credit cards aren’t accepted for payments. No fees are applied when making payments to Klarna, regardless of the payment method you choose.

The most common fees customers will have to contend with when using Klarna are late fees, which are $7 and up to 25% of your purchase price. Customers can easily avoid late fees by making timely payments on each purchase.

Customers who choose Klarna’s Pay Over Time purchasing option will need to have a hard credit pull, which will affect their score. The Pay Over Time option is the only one that will incur interest fees. Klarna’s APR is lower than many competitors, topping out at 33.99%.

How Does Klarna Work

Klarna users can simply download the app, input their personal information, including their Social Security Number, and, if approved after the soft inquiry, start using the features. When making a purchase, you can choose one of Klarna’s four payment options.

Pay in Full

The Pay in Full option is excellent for making a small purchase. When you use this option, you receive similar benefits to those associated with credit card purchases. Additionally, you can receive rewards, such as cash-back offers, from Klarna that you wouldn’t otherwise get by paying with cash or using another payment method.

Pay in 4

Klarna’s more traditional BNPL payment plan, the Pay in 4 option, includes making a 25% deposit at the time of purchase and making three additional equal payments every two weeks for a total of four payments.

Pay in 30 Days

The Pay in 30 Days option from Klarna allows you to make no initial deposit or down payment at checkout. It allows you to make a single payment in full for the purchase sometime within the next 30 days.

Pay Over Time

Pay Over Time is the only Klarna payment method where customers will have to pay interest on their purchases. Make no down payment and simply agree to the terms at checkout to initiate what amounts to a small loan for your purchase.

Klarna Plus Subscription

Shopping at a retailer that doesn’t partner with Klarna is possible using the virtual Klarna card. The option is available for use just about anywhere that accepts Visa. Most often, these transactions carry a one or two-dollar service fee that gets added to your total purchase price.

However, if you shop at several of these retailers and don’t wish to pay the fee, you can sign up for Klarna Plus. The subscription costs $7.99 per month, waives any service fees, and offers rewards, such as exclusive member deals through the app.

Klarna Eligibility Requirements

Customers must meet a few basic requirements to use the Klarna app.

• Be at least 18 years old
• Be a U.S. resident if using Klarna in the U.S.
• Have a positive credit history
• Have a valid bank account
• Have the ability to receive text verification codes

Klarna Reviews

Trustpilot reviewers give Klarna an average of 4.1 stars, with 71% of reports awarding the company five stars. It also receives an A+ grade at the Better Business Bureau for its timely responses to customer complaints when they happen. Additionally, the Klarna app earns high marks in the App Store and Play Store, averaging 4.8 and 4.6, respectively.

Positive reviews often cite excellent customer service and ease of use, while negative reports mention billing issues and unexplained purchase denials.

Apps Like Klarna

While we like Klarna’s multiple payment options and low potential for having to pay fees, many BNPL companies provide similar features. Klarna also mentions that having a positive credit history is a must for obtaining approval to use the app. This may limit its availability for some consumers.

Additionally, consumers can also choose from a range of other financing options, such as using one of the best credit cards for fair credit or, pursuing a personal loan to make a large purchase or consolidate debt. Each option has various benefits.

Here are some other buy now, pay later reviews to help you decide which is best for you.

• Afterpay review
• PayPal Pay Later review
• Zip review
• Sezzle review
• Affirm review

Frequently Asked Questions

Source

logo image source: klarna.com

About Author

Deane Biermeier