If you’re looking for the best experience for a buy-now-pay-later (BNPL), Klarna could be your best option.
With the popularity of fintech companies, consumers can now make cashless purchases and pay later.
BNPL could be your saving grace if you run out of cash and need to make urgent purchases in-store or online.
Klarna is one of the major BNPL apps offering a seamless experience on buy-now-pay-later.
What is Klarna? Is Klarna available in Canada? What are Klarna’s payment options? What are Klarna alternatives?
This Klarna Canada review covers everything you need about the company.
What is Klarna?
is a buy-now-pay-later (BNPL) app offering a seamless shopping experience for consumers. Klarna also helps brands increase their revenue by connecting them with millions of shoppers around the world.
With Klarna, you can shop across more than 250,000 stores and make 4 interest-free payments.
Founded in 2005, Klarna serves more than 90 million shoppers across 17 countries with a seamless BNPL experience.
In addition to 4 interest-free payments, Klarna also allows installment and direct payments.
How Does Klarna Work?
Klarna partners with more than 250,000 merchants to offer free pay later delivery solutions to shoppers.
After signing up on the platform and making an eligible purchase through your favorite store, Klarna will email your payment schedule as soon as the store ships your order.
As a BNPL app, Klarna allows you to make ‘4 interest-free payments’ on every eligible purchase. The payments will be withdrawn automatically from your linked credit/debit card every two weeks until you pay the full amount.
However, you can pay the full amount at once or make installment payments until you pay the full amount.
Is Klarna Available in Canada?
Yes, Klarna is available in Canada. In fact, Canada was the first country to witness the expansion of Klarna services across the international scene.
This means that you can enjoy Klarna’s 4 interest-free payments, installment, and direct payments in Canada.
Furthermore, you can use the Klarna app to make online and in-store purchases in Canada.
Can Anyone Use Klarna?
Yes, anyone residing in a Klarna-supported country can use the app. However, you must meet the following requirements to use Klarna:
- Be 18 years or older
- Have a good credit history
- Link your bank
- Don’t have outstanding debt on Klarna
Is Klarna Legit?
Absolutely. Klarna is legit, which is why it’s trusted by over 90 million shoppers and 25,000 merchants across 17 countries.
Unlike other buy-now-pay-later (BNPL) apps, Klarna doesn’t charge a fee for its pay after delivery solutions.
This means that you have nothing to lose with Klarna. You can decide to give it a try to confirm its legitimacy without losing anything.
Is Klarna Safe?
Klarna is a safe pay after delivery app offering all-round protection on shopping and payments.
In addition, Klarna assumes fraud and credit risk on all its payment methods, shielding you from fraudsters.
Through its “fraud liability protection,” Klarna ensures that you’re aware of any unauthorized purchases and charges on your account.
So if you notice any unauthorized purchase or charges on your account, you can file a claim and submit it to Klarna customer service within 60 days of the unauthorized notices.
That said, Klarna uses advanced encryption to protect your personal information on its website and mobile app.
What’s the Catch With Klarna?
The catch with Klarna can be summarized into the following points:
- Interest-free pay after delivery: You can shop from your favorite stores cashless without worrying about any interest rate on your loan.
- Flexible payment options: Klarna allows you to make 4 interest-free pay after delivery. However, you can also make one lump-sum payment or installment payment.
- Exclusive deals: Klarna offers you a seamless shopping experience by partnering with more than 250,000 merchants. This means you’re likely to find your favorite shop on the app.
- No fees: Worried about prepayment fees? Don’t. Klarna charges no prepayment fees except for late payment.
What is the Downside of Klarna?
The downside of Klarna can be summarized into the following points:
- Spending limits: Depending on the shop you choose, your maximum spending limit may be lower. However, the minimum spending limit of Klarna is $10.00.
- Late fee: If you miss your payment schedule, Klarna will charge you. If you fail to pay your loan, you may be blocked from using Klarna pay after delivery service.
Does Klarna Report to Credit Bureaus?
Klarna doesn’t report to credit bureaus for 4 interest-free payments. However, Klarna only performs a soft credit check to confirm your credit history.
As a result, your credit score will not be affected when you make a late payment. This also means that your payment history on Klarna will not improve your credit score since it’s not reported to credit bureaus.
How Does Klarna Make Money?
Klarna makes money through the following means:
- Merchant fees
- Late payment fees
- Interest on consumer loans
- Interchange fees
Unlike other buy-now-pay-later (BNPL) apps, Klarna is dedicated to offering cost-effective solutions to shoppers.
Klarna Payment Options
Klarna has three free payment options. These are 4 interest-free payments, installment payments, and one lump-sum payment.
That said, Klarna accepts payment from Visa, Mastercard, and other major credit cards and debit cards.
However, Klarna doesn’t accept prepaid card payments at the moment.
Klarna often completes fund deductions within 1-3 working days.
The following table shows Klarna daily payment schedule:
| Payment Period | Payment Completion |
| 8:00 pm ET | Same day |
| After 8:00 pm ET | Following day |
Can I Pay Earlier or Later?
Yes, you can pay your loan earlier or later so far you can afford it. Klarna allows you to make one lump-sum payment or installment payment.
However, not all purchases allow installment or one lump-sum payment. So it’s essential to confirm the payment option available for your desired purchase.
That said, ensure that your payment schedule doesn’t exceed the ‘4 interest-free payments” to avoid late payment fees.
In fact, you might get blocked from using Klarna pay after delivery solutions if your payment remains unpaid.
What Happens if I Can’t Pay on Time?
Two things might happen to you if you can’t pay your loan on time. These are:
- Klarna may impose late payment fees on your loan, increasing the overall cost and making it more challenging to pay.
- You might get blocked from using Klarna BNPL services in the future.
However, Klarna will not charge you late fees or block you without first trying to deduct the funds from your account several times. You will be notified via email about any unsuccessful payment.
That said, your missed payment will be added to the following payment schedule until you exceed the “4 interest-free payments” before sanctions apply.
Does Amazon Accept Klarna?
Yes, Amazon accepts Klarna because they’re partners. This means you can make cashless purchases on Amazon pay after delivering through Klarna.
Here are the steps on purchasing through Amazon on Klarna:
- Download the Klarna app on Google Playstore or App Store.
- Search for Amazon
- Add your items to the cart
- Navigate to your shopping cart
- Press “Pay with K”
- Click Pay in 4.
Can You Use Klarna In-Store?
Yes. You can use Klarna in-store or online. Klarna partners with more than 250,000 stores to give you the best experience.
Here are the steps on shopping in-store on Klarna:
- Download the Klarna app on Google Playstore or App Store
- Search for your favorite store
- Choose your retailer
- Set your sending budget
- Register a one-time card
- Link it to your Google or Apple wallet
- Press “pay”
Klarna Canada Review: My 5-Star Rating
Here’s how I arrived at the 4.8/5-star rating of Klarna Canada:
| Feature | Rating |
| Payment Options | ***** |
| Spending Limit
|
*** (3.5) |
| Interest and Fees | ***** |
| Partner Stores | ***** |
| Customer Service | **** (4.5) |
4 Top Apps like Klarna
Klarna is only one out of a dozen buy-now-pay-later (BNPL) apps out there. The following are some of the top alternatives to Klarna Canada:
1. PayPal Credit
PayPal Credit allows you to make an interest-free purchase from $99.00+ and pay it off in 6 months. This pay after delivery app works anywhere PayPal is accepted.
Like Klarna, PayPal Credit also charges fees when you fail to pay off the loan after the deadline. You’re also required to make monthly payments on your loan.
That said, you need a PayPal account to use this service because the credit will be automatically deposited to the account you linked with PayPal.
2. Sezzle
Sezzle is another pay after delivery app servicing the US and Canada. This company also allows interest-free payment after delivery purchases at eligible stores.
That said, Sezzle allows you to shop within over 40 stores and split your interest-free payment up to six weeks.
Like Klarna, Sezzle doesn’t charge prepayment fees or impact your credit score.
3. Afterpay
is a major competitor of Klarna Canada in the buy-now-pay-later (BNPL) industry. Unlike Klarna, Afterpay requires you to make an initial deposit of 25% of the purchase price before shipping the product.
Subsequently, you can pay the remaining balance within three months through two-week installment payments.
Like Klarna, Afterpay also doesn’t charge prepayment fees but charge late payment fees. Also, the After charges no interest on purchase loans.
4. Splitit
As the name implies, Splitit helps you split your post-delivery payment up to 24 interest-free installments.
Like Klarna, Splitit charges no prepayment and application fees and doesn’t affect your credit score.
What I like about Splitt are its flexible payment options that range from 3 up to 24 installments.
Klarna vs. Competitors: Which to Choose?
From the above comparison of Klarna vs. its alternatives, it could be challenging to narrow down your selection.
This is possible since all the buy-now-pay-later apps offer competitive services.
While you can use all the above apps free, you may want to narrow your selection to one app.
So consider the following factors when narrowing your selection of the buy-now-pay-later (BNPL) app:
- Spending limit: Not all the above BNPL apps offer the same spending limit. You should consider a BNPL app that suits your spending target.
- Number of stores: The more stores, the more the chances of shopping through your favorite stores. So it’s essential to also factor in the number of your desired BNPL app before finalizing.
- Payment options: Choose a BNLP with flexible payment options to avoid late payment fees in the future.
Verdict on Klarna Canada Review
That’s all about the Klarna Canada review. Now you understand what it entails to use Klarna or its competitors.
While buy-now-pay-later apps like Klarna could help make quick or emergency purchases, don’t rush in using them unless you’re ready to pay back within the stipulated period.
Failing to pay your loan will attract fees, making it difficult to pay the full amount and limiting your chances of taking another loan in the future. You may also be handed to a collection agency.
Since BNPL doesn’t report to credit bureaus, your loan payment will not improve your credit score. You decide!
Overall, my Klarna Canada review is positive, and I recommend it to anyone looking to make a quick cashless purchase.
Let me know which BNPL app you’re starting with in the comment section.
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FAQs on Klarna Canada Review
Is Klarna Only for Us?
Klarna is not only for US citizens. Anyone can use Klarna in-store or online in any country that the app is supported.
What Credit Score Do You Need for Klarna?
Klarna doesn’t have a minimum credit score for its payment after delivery services. However, it conducts a soft credit check to access your credit history without hurting your credit.
Does Klarna Charge a Fee?
Like other buy-now-pay-later apps, Klarna doesn’t charge a fee for payment after delivery services.
However, it charges fees for late payment. It also charges its partner merchants fees.
What Happens if You Don’t Pay Klarna?
If you delay paying your loan, Klarna will charge you late payment fees. However, Klarna may block your access to its payment options or report you to a collection agency if your payment remains unpaid.
Have more questions about Klarna Canada? Drop them in the comment section.
Hi, I'm Adeola Adegoke. I am a licensed Insurance Broker in Manitoba, and I hold a master’s degree in Mathematical Sciences (with a major in Financial Modeling) from the African Institute for Mathematical Sciences (AIMS), Tanzania.
Also, I have a second master's degree in Statistics from the University of Regina, and I am currently pursuing my Ph.D. in Statistics at the University of Manitoba.
The primary purpose of Money Reverie is to help everyday Canadians make better financial decisions by providing up-to-date financial news and information, reports, product reviews, and government programs.
