What is Klarna?

Klarna is a hugely popular payment service provider. It allows online shoppers to pay for their purchases flexibly. Rather than paying the full amount upfront, Klarna gives options. Consumers can pay in instalments or defer the full payment. This appealing “buy now, pay later” model makes Klarna one of the fastest-growing payment companies in recent years.

Klarna’s key features revolve around three main payment methods: ‘Pay in 3’, ‘Pay Later’, and ‘Pay Now’. Klarna’s most popular option is Pay in 3. It allows you to split any purchase into three equal interest-free instalments.

How does Klarna ‘Pay in 3’ work?

Here are the basic steps:

• At a retailer’s checkout (with Klarna integration), select Pay in 3.
• Enter basic details like email, billing address, and debit/credit card.
• Klarna collects the first third of the total right away.
• The remaining balance splits into two more payments. Klarna automatically collects these from your provided payment 30 and 60 days later.

For example, if your purchase totals £90, you pay £30 at checkout, then £30 again one month later, and the final £30 the next month. Klarna charges no interest or fees if you make payments on time.

How does Klarna ‘Pay Later’ work?

Another flexible Klarna option is ‘Pay Later’. This simply defers the entire payment for up to 30 days after you receive your order.

The process is straightforward:

• Select ‘Pay Later’ at checkout for any retailer partnered with Klarna.
• Provide basic details like email and delivery address.
• Receive and review your order as normal.
• Klarna emails a payment reminder before collecting the full amount.

This lets you try merchandise for weeks before paying. Klarna charges no fees or interest if you complete the full payment within 30 days.

For ‘Pay Later’, Klarna does a soft credit check to ensure you qualify. However, this doesn’t impact your credit score.

How does Klarna ‘Pay Now’ work? 

For a more traditional checkout, Klarna provides ‘Pay Now’. With this option:

• Select ‘Pay Now’ at the retailer’s checkout.
• Klarna prompts you to provide credit/debit card or banking details securely.
• The full purchase amount charges immediately.

So Klarna acts as a payment field here, like manually entering card details. But many prefer using Klarna to avoid re-entering details across retailers.

How popular is Klarna?

In 2022, Klarna reported having over 150 million global active users across 45 countries. Klarna has over 200,000 TrustPilot reviews in Ireland, with an average rating of 4.1 at the time of publication. Their iOS app has over 300,000 reviews, with an average rating of 4.7. 

Is Klarna safe?

A key concern with online payment methods is safety and security. Klarna uses the latest encryption technology and protocols to protect your data.

All information submitted through Klarna encrypts securely end-to-end. It cannot be intercepted. They also use multi-factor authentication, secure cloud infrastructure, and cybersecurity best practices.

Additionally, Klarna has robust fraud protection and identity verification.

From a consumer standpoint, Klarna provides refund and dispute resolution policies. If there are order issues paid through Klarna, you can file a claim directly.

Overall, Klarna is considered extremely safe and trustworthy, on par with major credit card companies and banks.

What can I buy with Klarna?

Klarna partners with over 250,000 retailers and merchants across industries including:

• Fashion and apparel
• Beauty and wellness
• Electronics and tech
• Home goods and furniture
• Sporting equipment
• Toys and hobbies
• Travel services

Klarna shops

Top global retailers that accept Klarna include H&M, Adidas, Sephora, IKEA, and more. They partner with major e-commerce sites and direct-to-consumer brands.

Klarna Ireland shops

In Ireland, thousands of popular online stores like ASOS, Gymshark, JD Sports, The Cotswold Company accept Klarna.

From May 2024, Ireland shoppers can also use Klarna at Recharge.com. On this site, you can purchase game vouchers, mobile top-ups, shopping gift cards, and entertainment vouchers.

To use Klarna at Recharge.com:

• Shop for desired vouchers and proceed to payment.
• Select the Klarna option.

Note that there is a restriction on using Klarna for payment card products or Amazon vouchers. This is due to terms from those merchants.

In summary, Klarna offers online shoppers three core benefits:

1. Flexibility – Split total costs into instalments or defer payment for more control.
2. Convenience – One-click purchasing across Klarna’s merchant network instead of re-entering details.
3. Security – Stringent data encryption and fraud prevention ensure safe shopping.

Where did the name ‘Klarna’ come from?

Klarna was founded in 2005 in Stockholm, Sweden by three students. They wanted a catchy and memorable name that would work internationally. “Klarna” is a Swedish word which means “to make clear” or “to clarify.” The founders felt this captured the mission of their service – to simplify and clarify the online shopping experience.

What happens if I can’t pay on time?

If you can’t make a payment to Klarna on time, here’s what happens:

For ‘Pay in 3’ orders

Klarna will attempt to collect the scheduled payment a few more times over the next couple of weeks. If unsuccessful, you will be charged late fees. The late fee is up to £12 per missed payment. Your account will be placed on payment plan hold and you cannot make new purchases until paying the outstanding balance.

For ‘Pay Later’ orders

Klarna sends payment reminders as the due date gets closer. If the full balance remains unpaid after the due date, late fees of up to £12 are charged. Your account is placed on hold preventing future ‘Pay Later’ purchases until paying off the total owed. 

Klarna may engage a debt collection agency to pursue payment if you continue missing deadlines after several months. Missed or late payments are also reported to credit bureaus, which can negatively impact your credit score.

If you’re having trouble paying on time, it’s best to communicate with Klarna Ireland’s customer service. They may be able to work out a revised payment plan.

The key is being proactive. Repeatedly defaulting can lead to added fees, account restrictions, debt collections, and credit score damage.

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