Klarna Reviews: Klarna offers online and in-store purchase point-of-sale loans using its mobile app. These loans allow consumers to shop and pay later at renowned retailers including Macy’s, Etsy, Foot Locker and Sephora. Klarna, founded in Sweden in 2005 and served 90 million shoppers, expanded to 17 countries. Its financing model is similar to companies like Afterpay and Affirm that provide short-term loans at check-out. Although payment is generally better in advance rather than using a loan, point-of-sale finance can make sense to purchase big ticket items by consumers provided that the loan charges are small or no interest and payments can be easily made.
The most common payment plan for Klarna, Pay in 4, allows shoppers to divide their purchase into four equivalent payments to be charged every two weeks, with the first due at checkout.
For instance, you’d pay $50 at checkout if your purchase costs $200. Every two weeks, the three remaining $50 installments will be credited to your debit or credit card before you have paid the entire $200.
The fees are interest-free, but if the payment is unsuccessful after two attempts, the company charges a late fee of up to $7. There is no penalty until the final due date for making a payment early or paying off the balance in full.