Klarna review: Flexible payments for online shopping

Learn about Klarna's buy now, pay later plans, including no-interest options. We cover features and customer reviews and give our verdict.

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Melissa Stewart

Reviewed by

Rachel Wait

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Many of your favourite shops will offer payment through Klarna – a scheme that allows you to slice up your payments over time or wait up to 30 days to make your first payment. The brand has also launched a Visa card that allows you to pay up to 30 days later.

You can check out our full list of retailers offering Klarna here.

How does Klarna work?

Klarna partners with a huge range of brands like boohoo, ASOS and PrettyLittleThing. When you shop with one of these stores, you can select Klarna as your payment method at the checkout.

In the UK, Klarna doesn’t charge any interest on its “Pay in 30 days” or “Pay in 3 instalments” plans. But the service’s “Financing” option is more like a credit card and this does charge interest (representative APR 27.90% variable). You can find out more about each plan below.

Klarna offers 4 payment structures for delaying payments for those who want to pay via Klarna:

  • Pay in 30 days. This is a credit option that allows you to complete your order without paying. After your goods are shipped, you’ll receive an invoice with up to 30 days to pay the full amount.
  • Pay in 3 instalments. This credit option allows you to spread the cost of your purchase equally over 2 months. It requires an affordability assessment (not a full credit check) and no interest is charged. Payments are due first at the time of ordering, and then 30 and 60 days later.
  • Financing. This is a regulated financial service and it allows you to split your payments into monthly instalments over 6-36 months. Like a loan or a credit card, it requires a full credit check and can charge interest – currently 27.90% APR representative. At the checkout, you can choose the term of the finance deal and you’ll be told how much interest will be payable – retailers have the option to offer different deals. You have to pay at least the minimum amount each month (if you only pay the minimum, though, this will increase the total interest amount). Your monthly statement will show an “interest-saver” amount and paying this will keep you on track to repay your purchase within the originally agreed term. Your credit score can be impacted by the Financing option.
  • Sofort. Also known as “Pay Now”, Sofort allows you to make a fast and easy payment of your online purchases using your online banking details.

How to use Klarna: Step-by-step video

Features of shopping with Klarna

  • No annual fee. You’ll never pay a maintenance fee to use Klarna.
  • Zero-interest options. If you choose “Pay in 30 days” or “Pay in 3 instalments”, you’ll pay no interest on your purchase.
  • Autopay. You can set up automatic minimum payments from your bank account to your Klarna account.
  • Secure. Klarna has an anti-fraud protection policy. If you see an unauthorised purchase with your account, report the problem to Klarna and the company says it will make it right.
  • Easy-to-use app. Manage your payments, report and manage returns and chat with customer service 24/7 from your smartphone.
  • Payment reminders. Klarna gives you a nudge 2 days before each payment is due.
  • Refunds. Request a refund for your order and receive your money within 14 days.
  • Digital wallet. In the Klarna App, you have the option to store all your physical store loyalty cards as digital versions.
  • Warning: Late repayments can cause you serious money problems. For help, contact the government’s free money advice website, MoneyHelper.

How much does Klarna cost?

You pay no annual fees to use Klarna, but there is interest to pay on the Financing option. For this, you’ll be told the terms of the finance deal, including any interest payable, upfront. The highest APR on Financing is 21.90%. Retailers may offer different rates, but they’ll never be more than 21.90%. Klarna charges a late payment fee of up to £5.

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Is Klarna safe?

Klarna stores and transmits your personal and financial details securely both online and offline. It has a Fraud Protection Promise that states it will work with you to investigate if you report suspicious activity or a fraud attempt.

“Where this investigation confirms that you have been a victim of fraud…rest assured that Klarna shall not expect you to pay for the fraudulent purchase,” it continues. There is an exception if Klarna believes you’ve acted negligently – for example, by not properly protecting your account information or personal information.

Klarna’s Buyer Protection Policy states that your dispute is with the retailer and details how to log any issue with a product in the Klarna app or online. Klarna says it can pause your payment due date while you work out a solution with the retailer.

The buy now, pay later (BNPL) sector faces being regulated; ahead of this, Klarna launched its own Complaints Adjudicator. Customers can request an “impartial review” relating to “Pay in 30 days” or “Pay in 3 instalments” issues if they feel their complaint wasn’t properly handled.

Be aware that, unlike credit card purchases, BNPL spending (with the exception of Monzo Flex) is not covered by Section 75 of the Consumer Credit Act. This protects purchases of more than £100 and up to £30,000 if they don’t arrive, they arrive damaged, or if the retailer goes out of business.”

– Rachel Wait, financial journalist

What is Klarna opt out?

Opt out is a new tool available in Klarna’s app which stops you from using more credit and taking on more debt, the first of its kind in the UK. Customers can use this feature as a “pre-decision” to stop them from using credit.

You can turn on this feature by clicking on the ‘settings’ tab in the Klarna app and select ‘deactivate credit’, then you’ll then be taken to a support page on how to deal with indebtedness. You’ll no longer be able to use Klarna Pay in 30, Pay in 3 or Financing products. To turn off this feature, contact Klarna’s customer service team.

How do I sign up for Klarna?

You must be at least 18 years old and shop with a retailer that offers Klarna at checkout to sign up for an account. All you need to do is select “Klarna” at this stage and complete the short application on the next page. You’ll know instantly if you’re approved for one of these plans or not.

To use Klarna’s app, create an account online with your email or download the app on your mobile device.

Which shops offer Klarna?

You can browse the full list of Klarna retailers here.

ASOS ASOS
Pay later!

Shop with Klarna at ASOS to buy now and pay later

Get deal
Pay later!
Lovehoney Lovehoney
Pay later!

Shop now, pay later with Klarna

Get deal
Pay later!
boohoo boohoo
Klarna

Shop now, pay later with Klarna

Get deal
Klarna
Schuh Schuh

Buy now, pay later with Klarna

Get deal

What other features does Klarna offer?

Klarna is planning to launch a customer recovery programme which is designed to help those struggling to repay their balance. Customers with long-overdue payments will be contacted by Klarna and offered to waive 50% of their balance. Customers will have to pay the remaining balance.

We spoke to Klarna commercial director Russ Carroll about why it’s different

Is Klarna easy to use?

Finder’s BNPL expert Amelia Glean answers

amelia expert comment
Klarna offers multiple BNPL plans to suit most people, but in terms of user experience, what is Klarna really like?

1. Seamless checkout experience

The process is quick and easy to follow. Once you’ve navigated to the checkout on a retailer’s website, you need to select your Klarna repayment method (choose between credit options “Pay in 30 days” and “Pay in 3 instalments” or “Financing”, which is the finance option). Once you’ve done this, enter your email address and shipping details. At this point, you’ll know if you can use the service or not.

Klarna runs a soft credit check on you if you’re applying for a credit option (“Pay in 30 days” or “Pay in 3 instalments”) to determine if you will be able to pay the money back. This doesn’t affect your credit rating. If you’re applying for “Financing”, Klarna might perform a credit check with a credit reference agency. This credit check will show up as an inquiry on your credit report and might impact your credit score.

Once approved by Klarna, you’ll receive confirmation of your repayment plan by email. Be sure to set reminders for these repayment dates (although Klarna will also send you email reminders and push notifications if you’re using the app to jog your memory should you forget). If you’re declined, it’s worth getting in touch with Klarna to find out why.

2. Range of plans to choose from

If you’re looking to shop online and try something on before you buy, you can opt for the interest-free “Pay in 30 days” option. This gives you ample time to get your item delivered, try it on and return it before the money even comes out of your account. If you like the item and want to keep it, you can pay Klarna back before the 30-day deadline. The “Pay in 3 instalments” plan may suit some shoppers better. The money is taken automatically from your linked account and can work better for those on a weekly budget. Other shoppers may prefer to pay for larger ticket items via Klarna’s Financing option. Be sure you understand all the terms and conditions if you choose this option, though – you may be charged interest and it could affect your credit score.

3. A cracking app

Use Klarna regularly? Chances are you’ll benefit from downloading the Klarna app. It’s easy to navigate when it comes to managing payments, but there are more advanced features, too. These include up-to-date deals from retailers, wish-list tabs and a spending tracker to keep on top of your outgoings all in one place. But the best feature? You can shop with your favourite retailers in the Klarna app itself, which saves a load of your precious time!

What happens if I make a late payment?

On 16 March 2023, Klarna began charging a fee of up to £5 for all late payments by its BNPL users. If you place an order valued at £20 or above, you’ll be charged £5 if you miss your payment. If your order is below £20, your late payment fee will be 25% of your order value.

From June 2024, this same late payment fee structure will also apply to the users of Klarna’s longer term Financing option – its regulated financial service where approved customers can split their purchase payments into monthly instalments over 6-36 months. These customers will be given a grace period of 14 days to make each scheduled payment before the penalty fee is charged.

It’s important to note that Klarna reports purchases paid on time, late payments and unpaid purchases to both Experian and TransUnion, but at the moment, it does not affect your credit score. To learn more, read our full guide.

What can I do if something goes wrong?

In most cases, your experience with Klarna will run smoothly. But on the off chance that you encounter a problem, check out Klarna’s list of frequently asked questions. Can’t find your question on there? Chat online with a member of the customer services team or call 020 300 50833.

How many shoppers use Klarna?

Klarna reports that it currently has 18 million shoppers in the UK with 1 million clicks from Klarna UK stores out to merchants per month.

Klarna was the most downloaded BNPL app in Jan-July 2020, at 986,000 downloads.

Klarna customer reviews

Klarna has a large number of online reviews. On Trustpilot, the brand scores 4.1 out of 5 stars based on over 254,000 reviews, with a rating of “Great” (updated May 2024).

On Google Play, there are over 590,000 reviews, and the brand receives a score of 4.6 out of 5 stars. On the App Store, Klarna gets 4.9 stars out of 5, as of May 2024, based on over 174,000 ratings.

Pros and cons of Klarna

Pros

  • Most popular BNPL platform in the UK
  • Easy to use, with 3 different BNPL payment options to choose from
  • Customer reviews are overwhelmingly positive

Cons

  • Late payments can show up on credit report
  • It’s so easy to use, it can be tempting to spend more than you have and get into debt

Our verdict: Is Klarna any good?

Klarna is the most popular BNPL platform in the UK. It’s slick, easy to use and fun – but it has also come in for criticism for making it easy to get into debt.

The platform covers mindful spending to discourage shoppers from over-using it, but some shoppers have spent more than they could afford. As always, make sure you’ve read and understood the small print before you sign up, and only use Klarna’s services if you’re sure you can pay the money in time.

There are 3 different BNPL plans to choose from, including an option that allows you to “try before you buy”. Klarna has partnered with just about any retailer that offers a BNPL option at checkout, and you’ll pay no interest on its “Pay in 3 instalments” or “Pay in 30 days” plans. Using these is pretty straightforward and can work well for shoppers who can repay on time.

How can I contact Klarna?

Klarna can be contacted via the Klarna app, instant 24/7 web chat or through phone at 020 300 50833 local rate or 0808 189 3333 freephone.

Frequently asked questions

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To make sure you get accurate and helpful information, this guide has been reviewed by Rachel Wait, a member of Finder's Editorial Review Board.
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Writer

Melissa is a copywriter with over 15 years' experience writing content for a variety of different brands. She has written reviews and buying guides for a number of consumer websites, including Which? and GoCompare. She's passionate about helping people get a fair deal. When she's not working, she enjoys travelling, cooking, and surfing the beaches on the North Devon coast. See full bio

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