Klarna BNPL Card
  • Interest-free instalment payments
  • Retailer integration and app
  • Flexible payment plans
  • Payment reminders
  • Soft-search facility available
  • Robust user data protection
  • Impulse buying risk
  • Late layment fees
  • Accumulating debt risk

In the rapidly evolving world of online shopping, Klarna, a renowned financial institution, has emerged as a game-changer with its innovative BNPL (Buy Now Pay Later) service. This option, gaining popularity across the UK, offers a flexible payment alternative, catering to the modern consumer's need for convenience and immediacy.

What is BNPL?

At its core, BNPL allows consumers to purchase items and defer payment. Klarna, in particular, has revolutionized this concept by introducing a contactless Visa credit card – the Klarna Card. 
Klarna has also introduced a physical card in the UK, allowing for in-store as well as online purchases with the same BNPL terms.

How Does the Klarna Card Work?

The Klarna Card functions like a typical credit card but with the unique feature of a 30-day payment delay. When a purchase is made, the amount is not immediately deducted from the user's account. Instead, Klarna provides a grace period, during which the user can pay off the amount without extra charges.

Overview of Buy Now, Pay Later by Klarna

Klarna provides a "Pay in 30 days" and "Pay in 3 instalments" option which carries no interest. However, there is interest associated with the Financing option, capped at a maximum APR of 18.9%. This means that if you choose the Financing option for spreading out payments over a longer period, you might have to pay interest up to this rate.

Additional Features

  • Opt Out Tool: Allows customers to proactively avoid further debt.
  • App Functionality: User-friendly with payment management, 24/7 customer service, and reminders.
  • Security Measures: Strong protocols and anti-fraud policy protect users' information and transactions.

Application and Eligibility

Applying for the Klarna Card involves a straightforward online process, ensuring that it is accessible to a wide range of consumers. 

However, Klarna has set specific eligibility criteria:

  • Age Requirement: Minimum 18 years.
  • Financial Assessment: Affordability checks for some options, full credit check for Financing.
  • Past Payment History: Previous interactions with Klarna are considered.
  • Retailer Partnership: Availability at specific retailers.

Reviews from Customers

Klarna's Buy Now, Pay Later (BNPL) option generally receives positive feedback from customers in the UK. As of January 2024, Klarna has a rating of 4.0 out of 5 stars on Trustpilot, based on over 200,000 reviews, and on Google Play, it scores 4.5 out of 5 stars. 

Positive aspects highlighted by Klarna's users include:

  • Ease of Use: Klarna's platform is considered user-friendly, with a straightforward checkout process and a variety of payment options to suit different needs.
  • Flexible Payment Options: Customers appreciate the "Pay in 30 days" and "Pay in 3 instalments" plans for their interest-free nature and the flexibility they offer in managing payments.
  • Convenient App: The Klarna app is well-received for its functionality, including features for managing payments, accessing deals, and tracking spending.
  • Seamless Integration with Retailers: Users value the wide availability of Klarna across a range of retailers, which makes it easy to use the service for various shopping needs.
  • Credit Reporting: Klarna's reporting of purchases and payments to credit reference agencies is seen as a positive step towards responsible lending and borrowing.
  • Customer Support: The company's efforts to assist customers, particularly those struggling with repayments, are also noted positively.

Negative aspects mentioned by some Klarna users include:

  • Risk of Overspending: The ease of use of Klarna's BNPL service can sometimes lead to impulse buying or spending beyond one's means.
  • Late Payment Fees: Klarna imposes a late payment fee of up to £5, which can be a concern for those who might miss payments.
  • Impact on Credit Rating: While late payments currently do not impact credit scores, there is potential for future changes in how these are reported, which could affect credit ratings.

It's important to note that while there are these positive aspects, users should be mindful of the terms, especially regarding late payments and credit checks.

Understanding the Risks of BNPL

While BNPL services like Klarna offer convenience, they also carry risks, primarily the potential for debt accumulation. Users should be well aware of the terms, especially regarding late payments, to avoid unforeseen charges and impacts on credit scores.


Klarna's BNPL product offers several benefits like zero-interest options and a user-friendly app. However, the impending regulatory changes and the inherent risks associated with BNPL services are points of consideration for consumers. Klarna's proactive approach to regulation and efforts to increase transparency and security are positive steps, but it's crucial for consumers to understand the implications of using such financial products.

Note: Information is based on Klarna's services as of January 2024 and is subject to change. For the most current information, consult Klarna's latest offerings.

Frequently asked questions

What makes Klarna's BNPL service different from traditional credit options?

Klarna's BNPL service offers a more flexible and consumer-friendly alternative to traditional credit. Unlike standard credit cards, Klarna provides options like "Pay in 30 days" and "Pay in 3 instalments," which are interest-free. This approach aligns with modern consumers' preference for simplicity and flexibility in managing their finances. Additionally, Klarna's user-friendly app and its integration with a wide range of retailers set it apart from conventional credit options.

How does the Klarna Card work, and what are its benefits?

The Klarna Card functions similarly to a regular credit card but with the added benefit of a 30-day payment delay. This means when you make a purchase, the amount isn't immediately charged to your account. Instead, you get a grace period during which you can pay off the amount without incurring extra charges. This feature is particularly beneficial for managing cash flow and making purchases more manageable without immediate financial strain.

Are there any fees associated with Klarna's BNPL service?

Klarna's "Pay in 30 days" and "Pay in 3 instalments" options are interest-free. However, for the Financing option, which allows for longer-term payments, interest might be applied, capped at a maximum APR of 18.9%. Additionally, Klarna may impose a late payment fee of up to £5 for missed payments. It's essential to understand these potential fees and choose the payment option that best suits your financial situation.

How does Klarna's service impact my credit score?

Klarna conducts affordability checks for its "Pay in 30 days" and "Pay in 3 instalments" options, which do not affect your credit rating. However, a full credit check is performed for the Financing option, which might impact your credit score. Moreover, consistent late payments or misuse of the service could potentially affect your credit rating in the future, depending on Klarna's reporting policies.

Can I use Klarna for all my online purchases?

Klarna can be used for purchases at a wide range of retailers that offer Klarna as a payment option. This includes numerous online stores, and with the introduction of the Klarna Card, it's now possible to use the service for in-store purchases as well. However, it's important to check whether a specific retailer partners with Klarna before planning your purchase.

What should I consider before using Klarna's BNPL service?

Before using Klarna's BNPL service, consider your financial situation and the potential implications of deferred payments. While Klarna offers convenience and flexibility, it's essential to use the service responsibly to avoid overspending and accumulating debt. Be aware of any fees, interest rates (if opting for Financing), and the impact on your credit score. Always read the terms and conditions thoroughly to ensure you understand the commitment you're making.