Kudos has partnered with CardRatings and Red Ventures for our coverage of credit card products. Kudos, CardRatings, and Red Ventures may receive a commission from card issuers. Kudos may receive commission from card issuers. Some of the card offers that appear on Kudos are from advertisers and may impact how and where card products appear on the site. Kudos tries to include as many card companies and offers as we are aware of, including offers from issuers that don't pay us, but we may not cover all card companies or all available card offers. You don't have to use our links, but we're grateful when you do!
Klarna Review: The Complete Guide to Buy Now, Pay Later in 2025
December 12, 2024
What Is Klarna?
Klarna is a leading fintech company revolutionizing the e-commerce landscape through its innovative "buy now, pay later" (BNPL) payment solutions. Founded by Sebastian Siemiatkowski, Niklas Adalberth, and Victor Jacobsson at the Stockholm School of Economics, Klarna has grown from a promising fintech startup into a global financial technology powerhouse.
With over 150 million active consumers worldwide and partnerships with major retailers like Macy's, Klarna has transformed from a simple payment processor into a comprehensive shopping ecosystem. The platform offers various payment options, including interest-free installments and flexible financing solutions, making it a prominent player in the post-payment sector.
Klarna Pros & Cons
Where Klarna Stands Out
- Multiple interest-free payment plans with robust fraud prevention services
- Comprehensive digital wallet features and integrated shopping experience
- 24/7 customer service with a formal buyer protection policy
- Flexible payment options for both online and in-store purchases
- User-friendly mobile app with extensive retailer partnerships
Where Klarna Falls Short
- Potential late fees up to $7 for missed payments
- Service fees may apply for certain transactions
- Payments aren't reported to credit bureaus
- Higher APRs (up to 33.99%) for monthly financing options
- Limited credit-building opportunities
Who Is Klarna For?
Klarna is ideal for tech-savvy shoppers who want flexible payment options without immediately impacting their credit score. It's particularly suitable for:
- Online shoppers who prefer trying items before paying
- Budget-conscious consumers seeking interest-free payment plans
- Customers who want to manage multiple payment methods in one app
- People looking for alternative financing options with fair to good credit
- Regular e-commerce shoppers seeking enhanced payment flexibility
How Does Klarna Work?
Payment Options and Features
- Klarna Pay in 4
- Split purchases into four equal, interest-free installments
- Payments due every two weeks
- First payment required at checkout
- Available for most online purchases
- Klarna Pay in 30
- Try before you buy with 30-day payment terms
- No interest charges
- Flexible payment scheduling
- Perfect for online shopping
- Monthly Financing
- Available for purchases starting at $150
- Terms from 6 to 24 months
- Potential 0% APR offers
- Higher approval requirements
Safety and Security Features
Klarna prioritizes user information protection through:
- Advanced fraud prevention services
- Secure payment processing
- Non-sensitive data handling protocols
- Regular security updates
- Comprehensive privacy measures
Consider Using Kudos
While Klarna offers flexible payment options, savvy shoppers looking to maximize their purchases should consider using Kudos, a free AI-powered browser extension. Unlike Klarna, which focuses on payment plans, Kudos helps you earn maximum rewards from your existing credit cards.
Currently, Kudos is offering an exclusive $20 back after your first eligible purchase — simply sign up for free with code "GET20" and make a purchase at a Boost merchant. With features like personalized card recommendations and integration with over 15,000 stores, Kudos complements your shopping strategy while helping you earn more rewards.
Our Expert Takeaway
Klarna has successfully positioned itself as a leading fintech company in the BNPL space through strategic partnerships, market expansion, and innovative payment solutions. While it offers valuable features for modern shoppers, users should carefully consider the potential fees and terms before using the service.
Klarna FAQ
Does Klarna affect your credit score?
Initial applications only require a soft credit check. However, missed payments may be reported to credit bureaus and impact your score.
How safe is Klarna to use?
Klarna is a legitimate and safe fintech company with strong security measures and privacy protections in place.
What payment methods does Klarna accept?
Klarna accepts debit cards, credit cards, and bank accounts for most plans, though credit cards aren't allowed for monthly financing.
Can you pay off Klarna early?
Yes, you can pay off your Klarna balance early with no prepayment penalties.
Is Klarna available in stores?
Yes, Klarna can be used in physical stores through their mobile app and digital card features.
Supercharge Your Credit Cards
Experience smarter spending with Kudos and unlock more from your credit cards. Earn $20.00 when you sign up for Kudos with "GET20" and make an eligible Kudos Boost purchase.
Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
