Klarna buy now, pay later: 2025 review

Klarna is best for online purchases 

Klarna works with more than 500,000 retailers, which makes it a suitable option for shoppers that want to finance a purchase at the point of sale. Your available loan amount is based on your payment history and can increase with responsible repayments.

However, the convenience of Klarna’s BNPL should be approached with caution. The ease of use makes it tempting to soar past your budget and overspend. Plus, Klarna's loan product can carry a high interest rate of nearly 34 percent.

Klarna BNPL purposes

Klarna BNPL can be used for a wide range of purchases, including online and in-person. Like more traditional personal loan products, Klarna cannot be used for the following purchases:

• Purchasing gift cards
• Utility bills
• Rent
• Government bills and fines
• Gambling

Where Klarna stands out

• Multiple payment options: Rather than just a single 0 percent payment plan, Klarna offers both a pay-in-four and pay-in-30 option. Beside its two 0 percent options, Klarna also offers personal loans with terms up to two years through partner WebBank.
• Rewards program: Klarna's free rewards program gives one point for every dollar spent using Klarna. Points can be redeemed for discounts and offers at certain stores.
• Partners with popular stores: From Nike to Instacart, Klarna partners with both major and niche stores offering a variety of goods. Whether you're looking for clothes, beauty supplies, electronics or more, you'll likely be able to pay with Klarna.

Where Klarna falls short

• Late fee may apply: If you're late on your payment, you may owe $7. If you miss more than one payment, the late fees can add up — though they are limited to 25 percent of the original purchase amount. You may be able to extend your payment due date once by up to seven days.
• Doesn't help you build credit: As with many BNPL options, using this type of financing won't help you build credit. Your on-time payments are not reported to any credit reporting agencies. However, your late payments may be reported.
• Limited qualification information available: Maximum credit amounts are highly individual and Klarna doesn't provide information on exact financial requirements.

Klarna customer resources 

Customer support

Klarna boasts 24/7 online customer support. Account holders can chat directly through the mobile app or website orrequest a callback. The site also has a fairly in-depth FAQ section that answers common questions and concerns.  

Digital experience

Klarna BNPL's user experience streamlines the process of using it for online purchases. Its app has a 4.8 out of 5-star rating in the App Store and a 4.7 out of 5-star rating in the Google Play Store. Klarna offers an online plug-in, app or Apple Pay integration. 

How this app compares

Klarna vs. PayPal

Unlike Klarna, PayPal's pay-in-four option has a maximum amount of $1,500. However, if you have multiple small purchases you want to finance, PayPal may be the better option. PayPal also offers the benefit of no late fees with its pay-in-four option. 

Klarna vs. Affirm

Affirm and Klarna are both well known in the BNPL space, having been in business for over a decade. Both offer in-store purchase options and generally similar services. 

Where Klarna stands above is in the types of plans it offers. Klarna has two plan options, whereas Affirm only offers one. Affirm, on the other hand, has a higher average app rating across the App Store and Google Play.

Do you qualify for BNPL with Klarna?

Unlike traditional lending, your creditworthiness doesn't play the largest role in approval. Most buy now, pay later apps — like Klarna — don't conduct a hard credit inquiry for approval, making it easier to get approved with a low credit score. However, Klarna has other eligibility requirements and not all purchases are guaranteed to be approved for financing. 

To use Klarna, you must: 

• Be at least 18 years of age.
• Be a resident of the U.S. or one of its territories.
• Have a positive credit history.
• Have a valid credit or debit card and bank account.
• Purchase an eligible item.

How Bankrate rates Klarna

The Bankrate team did a complete analysis of the features and services offered by the most well-known buy now, pay later apps in the industry. Then our experts developed a scoring system to rate these apps, focusing on three main areas: