WHAT IS KLARNA?
Using the software Klarna, you may make unpaid purchases from online merchants and pay for the items afterwards.
Customers could only previously opt to pay through Klara with specific shops with whom it has partnered.
But as of right now, regardless of whether it has a partnership with the store, Klarna is accessible at all online retailers.
HOW DOES KLARNA WORK?
Customers may stretch out the expense of a purchase over three months by using the Klarna shopping app.
You’ll receive an email letting you know when the payment is due and your item will ship out right away.
Before being obligated to pay, you’ll have 14–30 days (depending on the retailer) to determine if you want to retain the item.
When a payment is due, you go into your account and use a debit card to settle your debt.
It offers the advantage of letting you make online purchases and select whether or not to keep the items before paying for them.
This means that if you decide you do not want your goods, you are not stuck waiting for the refund to show up in your bank account.
Spreading payments out over several months or even years is another option.
As opposed to some credit cards, Klarna doesn’t impose interest or other fees during the time between when you buy your goods and when you pay for them.
WHAT PRODUCTS DOES KLARNA OFFER?
Three products are available from Klarna, all of which let customers pay for their purchases at a later time.
The services do, however, vary somewhat in terms of when you’ll make payments and how that may impact your credit score.
The Pay in 30 Days service, which allows consumers to postpone their payment due by 30 days, is the Swedish company’s major offering.
This is accomplished by Klarna through a soft credit check, which has no effect on your credit score.
Customers can also choose to pay in three installments, with the first one due at the time of ordering.
The only difference between this and the Pay in 30 Days option is that with this option, you must pay a portion of the total up front and the payment is divided into smaller amounts.
Third, Klarna offers a financing option with payments spread out over a period of six months to three years. This requires a thorough credit check, which can lower your score.
