Founded in 2005 in Stockholm, Sweden, Klarna’s mission was to revolutionize online shopping, making it more accessible. Over the past 18 years, technology has advanced, reshaping our world, but Klarna’s purpose remains unchanged: to make payments as easy, secure, and, above all, smooth as possible.
Klarna stands as the leading global payments and shopping service, offering intelligent and adaptable shopping experiences to 150 million active consumers across 45 countries through 500,000+ merchants. Our services encompass direct payments, pay-after-delivery options, and installment plans, all streamlined into a single, user-friendly purchase experience, empowering consumers to pay on their terms.
In 2014, Klarna formed the Klarna Group upon acquiring SOFORT. We’re backed by esteemed investors such as Sequoia Capital, Silver Lake, Bestseller Group, Dragoneer, Permira, Visa, Ant Group, and Atomico.
Key Statistics
- Total active consumers: 150,000,000
- Total number of merchants: 500,000+
- Daily transactions: 2,000,000
- Number of employees: 5,000+
How Klarna Works
Klarna offers various options for users. With the Klarna app, you can shop online or in-person at partner stores and select from multiple payment choices. Here’s a breakdown of their “buy now, pay later” options:
- Pay in 4: Divide your purchase into four interest-free payments, with 25% down and the remainder every two weeks.
- Pay in 30 Days: Get your items immediately and enjoy a 30-day grace period for payment.
- 6–24 Month Financing: Klarna partners with WebBank to provide flexible financing, allowing you to split payments over six months to two years.
Option three, while offering flexibility, carries an interest rate that can reach as high as 29.99%. Choosing this option may result in significantly higher overall costs.
The “Pay in 4” option is the most popular, widely used by online stores. While it doesn’t charge interest, late payments can incur fees.
Where Klarna Is Accepted
Klarna collaborates with over 250,000 global retailers, including well-known U.S. stores like Macy’s, H&M, Nike, and Sephora. You can use Klarna’s payment options for fashion, electronics, beauty products, and home goods.
Klarna’s seamless integration means you don’t necessarily need to download their app or visit their website. If you’re shopping online at one of these stores and proceed to your cart, Klarna’s “Pay in 4” option is readily available without the need for membership.
Is Klarna Safe?
Klarna is a legitimate company; however, its impact on your wallet can be a concern. While it doesn’t directly affect your credit score, unpaid debts can eventually lead to collections. Klarna’s convenience can sometimes lead to overspending and financial stress.
Rather than focusing solely on credit scores, consider maintaining a healthy bank balance. Responsible budgeting and upfront payments can alleviate financial worries and the need for credit scores.