Online retailers are increasingly offering flexibility with their payment options. Buy now, pay later (BNPL) apps have become more popular because they provide consumers with the freedom to purchase items without any interest payments.
Klarna is a relatively new buy now pay later app that allows US and UK citizens to make secure purchases quickly. Since then, the company has revolutionized online shopping for both US and UK citizens.
They have also allowed thousands of online businesses to have an easy time transacting through a secure system without worrying about cash.
Klarna allows customers to get what they want today but only be charged for it over their pre-set period. This is especially helpful with shopping—you can enjoy buying your favorite item today and breathing easier knowing that it’s not going to take up your monthly budget.
Is Klarna a scam or a legit business?
This article is meant to help you understand everything there is to know about Klarna before deciding whether this is a good option for your business.
What Is the Klarna App
Klarna is a prominent financial technology firm headquartered in Stockholm, Sweden. It was founded by Sebastian Semiatkowski in 2005 with Niklas Adalberth & Victor Jacobsson.
Klarna lets you shop from any online retailer and pay for your purchases in four equal installments. You get to know what you want now and decide what installments you wish to spend on it.
This is an excellent option for those who don’t want to end up with more debt than they can handle but still love shopping! With the app, you’ll be able to see your purchase in one place and keep track of your budget. You can spend with intent & mindfulness so that you don’t spend more than you intended.
How Does Klarna Work
With Klarna, you can make purchases on the app, online, or at stores that accept it as a means of payment. Some of the benefits of Klarna include an easy checkout process, a reimbursement policy, and a personal spending limit determined by your credit inquiry.
When you buy with Klarna, you have three financing options to choose from:
Pay in 4:
You can use your debit or credit card to pay for your purchase with this feature. The first payment (25% of the total amount) is charged to your card after the agent has processed the order.
The following three payments will be automatically charged to the credit card every two weeks, and you will receive a 2-day prior notification of these charges. The interest rate is zero percent if you follow the automatic payment schedule.
Pay in 3o Days:
The Pay in 3o Days financing option lets you pay for your desired items from retailers that support Klarna finance.
Once the retailer has shipped your order, you’ll receive a digital invoice on your email which specifies that payment is due within 30 days. If you don’t like the item you bought, you have 30 days to return it without paying any fees.
There is also zero interest in their offer, which makes it an excellent choice for anyone looking at investing in a new piece of clothing or home goods.
6-36 Month Plan:
A 6-36 month plan usually only applies to more expensive goods but is open to a few users. All purchases can be spread out for 6 to 36 months and provide you with more security and peace of mind, but the annual percentage rate will be greater than with a credit card.
Payment will only be made by bank account or debit card on this plan. Credit cards are not accepted. The 6-36-month plans can be in a few different forms. Depending on which one the merchant offers, they are considered to be the following:
Planned Payments:
There are many benefits to using this option, such as a predetermined repayment schedule, with an interest rate and annual percentage rate. You need to make the fixed payment every month.
Flexible Month to Month:
A great option that lets you choose the repayment plan you need while receiving a reasonable interest rate is available from this retailer. However, you’ll want to avoid accumulating any extra charges or fees, so be sure to read the terms of use agreement carefully before using this service.
Deferred Interest Financing:
The deferred interest financing plan is available with no interest charged, which means you have time to rack up a hefty balance so that the ones you choose will be affordable.
In addition, the payment option can be tailored to your specific needs. Interest can be charged on unpaid balances over days if you do not make payments within the agreed-upon terms.
Before using a retail store accepting Klarna services, read the terms and conditions carefully. This will help you understand what kind of financing plan you need.
Is Klarna a Credit Card
Klarna is similar to a credit card in many ways. Banks, credit cards, and Klarna are all about making both you & the service providers use money. But there are significant differences between Klarna and a credit card that make it stand out from the rest.
When you purchase a product or service in the app, you will use a prepaid card (Ghost Card). These cards are good for one-time transactions. Unlike getting a credit card, you don’t have to worry about your credit score. You also don’t have to worry about a limit (although the system will evaluate your payment history).
Is Klarna a Legitimate Company or a Scam
Klarna is a legit company with many attractive features. It is similar to a typical credit card company but with an added advantage in its payment system.
First, you’ll want to complete the registration process on the official Klarna website. You’ll need to enter some personal information, such as your name and address. Then, apply for your one-time Klarna card!
The app’s rating on the Apple App Store & Google Play can be seen as a mark of its popularity. Customers have expressed their positive views to their peers worldwide, meaning Klarna is used and trusted by many.
Not each buys now, pay later company is made equally. Other businesses offering these services may not be as safe as Klarna, so be sure and conduct research before offering up any sensitive information to other companies.
Can the Klarna Card Be Defrauded
While klarna does everything it can to keep its website and apps secure, there are still other possible ways for experienced scammers to use—including finding a way around their seemingly tight defenses.
There are ways to ensure you don’t get scammed. For instance, you can consider keeping your klarna card details to yourself. If you share your computer or smartphone with someone, ensure your card details are secured.
Does Klarna Have a Refund Policy or Buyer Protection
When you pay with Klarna, your purchase is made through the store. So if you want to return an item you purchased with Klarna, you must contact the store where it was purchased to return it.
Most stores have different refund policies that you can get from their website. It’s good to be familiar with the retailer’s rules before purchasing anything and accepting a refund through Klarna. The refund policy of Klarna will be based on the retailer’s refund policy. If you want to report a return, it is easy to do that through the Klarna app. They’ll stop charging you for future payments.
Although reviews have been mixed, there is a consensus that Klarna is not the best choice for people looking to receive a refund.
Is Safety in Klarna Assured
Klarna is taking from multiple angles to ensure that the fraud, hacking, and other threats on their platform are kept out of their system. They are updating their security regularly and monitoring digital risk factors so as not to be breached by scammers. Online merchants are now making the leap of faith and trying out Klarna as one of their payment methods.
Klarna has the best security features to protect your data from criminals. However, customers should report anything suspicious to their complaints team immediately. As online shopping becomes more popular, so do the ways scammers attempt to scam consumers by ever-increasingly creative means.
Scams are becoming more challenging to spot and, therefore, more problematic for companies like Klarna to combat. There have been a lot of scamming cases reported by Klarna’s buyers, and the company’s representatives are doing all they can to protect them.
