Klarna | BNPL

Buy Now Pay Later (BNPL) schemes offer instant access to credit and the items on our wish lists. They allow a shopper to make a purchase, pay an initial instalment, then clear the remaining balance in regular, automatic payments. Currently, there are six main BNPL providers in NZ. Here Canstar reviews and compares Klarna with its competitors.

Logo of Klarna, a Buy Now Pay Later service

How does Klarna work?

Already in 21 countries worldwide, BNPL service Klarna is the latest BNPL service in NZ.

  • Pay in four, fortnightly instalments
  • Personalised credit limit
  • App and website
  • Klarna’s app offers the ability to keep track of payments, save favourite items to wish lists, and receive price drop notifications when those items go on sale
  • Reward points: earn 1 point for every $1 you spend. You’ll be rewarded for every 500 points earned.
  • Ability to extended due dates on some repayments

What are Klarna’s late fees?

Unlike other BNPL services, Klarna doesn’t charged late fees on balances under $50. For sums $50 and above it charges a fee of $3 per missed instalment, to a total of $9.

How does Klarna compare?

The display order does not reflect any ranking or rating by Canstar.

Provider Instalments Frequency Late Fee Late Fee Cap
4 Fortnightly $10 then $7 each week 25% of item cost
6 Weekly $10 per missed payment $40
4 Fortnightly $3-$15 per missed payment $9-$45
4 Fortnightly $8 per missed payment $40

This information is not an endorsement by Canstar of BNPL schemes or any specific provider.

About Klarna

Klarna was founded in Sweden in 2005, with the aim of making it easier for people to shop online. It offers direct payments, pay after delivery options and instalment plans. In total, it has 250,000 merchants signed up, and per day it records over 2 million transactions across the globe.

The company has a direct link to NZ: ASB’s parent company Commonwealth Bank of Australia owns 5% of Klarna. ASB customers will be able to sign up to Klarna via the ASB mobile app.

Written by: Andrew Broadley | Last updated: September 9, 2022

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