Klarna is a buy-now-pay-later (BNPL) platform that allows you to purchase items online or in-store in Canada and pay for them later in interest-free instalments. By partnering with top retailers worldwide, Klarna makes it easy to split your purchases into manageable payments.
With a network of over 250,000 merchants in Canada, Klarna offers exclusive deals, flexible payment options, and a hassle-free process without hard credit checks. The first payment is made at checkout, with the remaining payments collected every two weeks.
In this Klarna Canada review, we will comprehensively explore the platform, including how it works, its pros and cons, payment methods, safety measures, and more.
Our Take on Klarna Canada Review
Klarna is a popular payment platform that enables users to buy items online or in-store and pay for them later in interest-free instalments. Founded in 2005, Klarna Canada serves over 90 million users in 17 countries, partnering with individual merchants to offer affordable purchases split into short-term loans.
With its user-friendly interface and lack of hard credit checks, Klarna Canada provides a flexible financing option. Users can shop at over 250,000 partner stores worldwide, selecting Klarna at checkout to divide payments into four interest-free instalments or opt for full payment or longer instalment periods. However, potential drawbacks include the risk of overspending and limited merchant partnerships.
- Interest-free pay after delivery
- Flexible payment options:
- Exclusive deals by partnering with more than 250,000 merchants
- No prepayment fees
- Fees for late payment
- Your maximum spending limit may be low
- Doesn’t build your credit.
What is Klarna Canada?
Klarna is a payment platform that allows you to buy items online or in-store and pay for them later in instalments without any interest or fees. Founded in 2005, Klarna Canada has quickly become one of the most popular Buy-Now-Pay-Later apps in the world, serving over 90 million users in 17 countries.
Klarna partners with individual merchants to make purchases affordable for its users by spitting up costs into short-term, interest-free instalment loans.
With its easy-to-use platform, interest-free payments, and lack of a hard credit check, Klarna Canada is a great option for those looking for a flexible and convenient way to finance their purchases.
How Does Klarna Work?
Klarna is a buy-now-pay-later (BNPL) app offering a seamless shopping experience for consumers. Klarna partners with over 250,000 stores worldwide to provide a seamless BNPL experience.
Once you’ve signed up for Klarna, you can shop at any of these partner stores and select Klarna as your payment option at checkout. If your purchase is eligible, Klarna will divide the total cost into four interest-free payments, automatically charged to your linked credit or debit card every two weeks.
But Klarna isn’t just limited to four payments. Users can also choose to pay in full at any time or spread their payments out over a longer period of time with Klarna’s instalment option. And the best part? Klarna doesn’t require a hard credit check, making it a great option for those with less-than-perfect credit.
While Klarna certainly has its benefits, it’s important to consider the potential drawbacks as well. As with any form of credit, there is always the risk of overspending and accumulating debt. Additionally, not all merchants may be partnered with Klarna, limiting your options for using the platform.
Benefits of Klarna
- Interest-free pay after delivery
- Flexible payment options:
- Exclusive deals by partnering with more than 250,000 merchants
- No prepayment fees
Downsides of Klarna
- Fees for late payment
- Your maximum spending limit may be low
- Doesn’t build your credit.
Is Klarna Safe?
Yes. Klarna is safe, and it’s trusted by over 90 million shoppers and 25,000 merchants across 17 countries.
Klarna is a safe BNPL app with all-around protection for shopping and payments. It assumes fraud and credit risk on all its payment methods, shielding you from fraudsters. Through its “fraud liability protection,” Klarna ensures you know of unauthorised purchases and charges on your account.
So if you notice any unauthorised purchases or charges on your account, you can file a claim and submit it to Klarna customer service within 60 days of the unauthorised notices.
Also, Klarna uses advanced encryption to protect your personal information on its website and mobile app.
Is Klarna Legit?
Klarna is a legitimate Buy Now Pay Later company that is authorized to operate in Canada. Klarna Canada has a 3.9 rating on Trustpilot based on 159,239 reviews.
This means Klarna’s review is above average, positive, and can be trusted. You have nothing to lose with Klarna. You can decide to give it a try to confirm its legitimacy.
Klarna Payment Options
Klarna has three free payment options:
- Pay in 4: You can split your purchase into four interest-free payments, which will be charged to your linked credit card every two weeks. You must make the first payment with your purchase and spread the balance over the course of the next six weeks.
- Pay in 30: You can make a payment and payment-free purchase, with full payment due within the next 30 days. So if you are waiting for your paycheck to make a purchase, this can be a good option.
- Financing: You can choose from a range of term lengths, up to 36 months in some cases.
Terms Amount due at check out Interest Late fee Pay in 4 6 weeks One fourth of the total price None $7 or 25% of your order amount, whichever is less Pay in 30 30 days None None None Financing Up to 36 months None 0% to 24.99% None
Can I Pay Earlier or Later?
Yes, you can pay your loan earlier if you can afford it. Klarna allows you to make one lump-sum payment if the funds are available.
Also, you can extend the due date if you cannot pay your bill on time. When you extend your due date, all other scheduled payments will adjust to two weeks after the new date you have selected.
Klarna understands that you might experience some unforeseen financial difficulties. You can contact the Klarna customer service team in case of financial difficulties, and they will work with you to keep your account in good standing.
What Happens if I Don’t Pay?
Klarna doesn’t charge interest or fees on your purchases when you make the payments on schedule. However, if you don’t make the scheduled date, Klarna won’t charge you but will try again after two days. Klarna will add the missed payment to your next payment if you still don’t make it.
Klarna will send a notification to inform you of your payment failure and inform you of the next double payment in two weeks. If you continue to miss payments or don’t settle the remaining balance on the due date, it will be sent to a third-party collection agency and may affect your credit score negatively.
Who Can Use Klarna?
Anyone residing in a Klarna-supported country can use the app. However, you must
- Be 18 years or older
- Have a good credit history
- Link your bank
- Don’t have outstanding debt on Klarna
Does Amazon Accept Klarna?
Yes, Amazon accepts Klarna because they’re partners. This means you can make cashless purchases on Amazon Pay after delivering through Klarna.
Here are the steps for purchasing through Amazon on Klarna:
- Step 1: Download the Klarna app on the Google Play Store or App Store.
- Step 2: Search for Amazon
- Step 3: Add your items to the cart
- Step 4: Navigate to your shopping cart
- Step 5: Press “Pay with K”
- Step 6: Click Pay in 4.
Can You Use Klarna In-Store?
Yes. You can use Klarna in-store or online. Klarna partners with more than 250,000 stores to give you the best experience.
Here are the steps for shopping in-store on Klarna:
- Step 1: Download the Klarna app on Google Playstore or App Store
- Step 2: Search for your favourite store
- Step 3: Choose your retailer
- Step 4: Set your sending budget
- Step 5: Register a one-time card
- Step 6: Link it to your Google or Apple wallet
- Step 7: Press “pay”
Does Klarna Affect Credit Score?
Klarna doesn’t perform hard credit checks, so your credit score isn’t affected when you use Klarna in Canada. However, if you mismanage your repayment plan and it is sent to a collection company, it could negatively impact your credit score.
Klarna doesn’t report missed payments or outstanding balances to credit bureaus, the collection company registers the bad debt as a Public Recoird on your credit file. Depending on the financial institution, this could have a significant negative impact on your credit score.
Does Klarna Do A Credit Check?
Klarna does not always perform a credit check on you. However, they may perform a credit check to ensure that you are making the right financial decisions for your circumstances.
When a credit check is performed, Klarna verifies your identity using the details you provided and they look at information from your credit report to understand your financial behaviour and evaluate your creditworthiness.
Klarna doesn’t perform a credit check on you when signing up to use Klarna or downloading the app. They may perform a soft credit check when you are deciding to Pay in 4, preferring to pay in 30 days, or using monthly financing.
How Does Klarna Compare to Other Buy-Now-Pay-Later Platforms in Canada?
Klarna is only one out of a dozen buy-now-pay-later (BNPL) apps out there. The following are some of the top alternatives to Klarna Canada:
1. PayPal Credit
PayPal Credit allows you to make an interest-free purchase from $99.00+ and pay it off in 6 months. This BNPL app works anywhere PayPal is accepted.
Like Klarna, PayPal Credit charges fees when you fail to pay off the loan after the deadline. You’re also required to make monthly payments on your loan.
Also, you need a PayPal account to use this service because the credit will be automatically deposited to the account you linked with PayPal.
2. Sezzle
Sezzle is another BNPL app in the US and Canada. This company also allows interest-free payment after delivery purchases at eligible stores.
Sezzle allows you to shop within over 40 stores and split your interest-free payment for up to six weeks. Like Klarna, Sezzle doesn’t charge prepayment fees or impact your credit score.
3. Afterpay
Afterpay is a major competitor of Klarna Canada in the BNPL industry. Unlike Klarna, Afterpay requires an initial deposit of 25% of the purchase price before shipping the product.
Subsequently, you can pay the remaining balance within three months through two-week instalments.
Like Klarna, Afterpay also doesn’t charge prepayment fees but charges late payment fees. Also, Afterpay charges no interest on purchase loans.
> Read our Afterpay Canada Review
4. Splitit
Splitit helps you split your post-delivery payment up to 24 interest-free instalments. Like Klarna, Splitit charges no prepayment and application fees and doesn’t affect your credit score.
What I like about Splitt is its flexible payment option that ranges from 3 up to 24 instalments.
Final Thoughts on Klarna Canada Review
Klarna is a trustworthy and legitimate payment platform that offers a seamless and convenient shopping experience for customers in Canada.
With its simple and straightforward payment plans, Klarna enables shoppers to pay for their purchases in instalments, allowing them to budget and manage their finances more effectively.
Additionally, the company’s commitment to customer service and security ensures shoppers have a safe and trustworthy payment option at their disposal.
Overall, Klarna Canada is a reliable and user-friendly payment solution that is worth considering for any Canadian shopper looking for a flexible payment option.
FAQs on Klarna Canada Review
How Does Klarna Make Money?
Klarna makes money through merchant fees, late payment fees, interest on consumer loans, and interchange fees. Unlike other BNPL apps, Klarna is dedicated to offering cost-effective solutions to shoppers.
Is Klarna Available in Canada?
Yes, Klarna is available in Canada. In fact, Canada was the first country to witness the expansion of Klarna services across the international scene. You can enjoy Klarna’s services in Canada.
Also, you can use the Klarna app to make online and in-store purchases in Canada.
Is Klarna Only for the US?
Klarna is not only for US citizens. Anyone can use Klarna in-store or online in any country supported by the app.
What Credit Score Do You Need for Klarna?
Klarna doesn’t have a minimum credit score for its payment after delivery services. However, it conducts a soft credit check to access your credit history without hurting your credit.
Does Klarna Charge a Fee?
Like other BNPL apps, Klarna doesn’t charge a fee for payment after delivery services. However, it charges fees for late payments. It also charges its partner merchants fees.
What Happens if You Don’t Pay Klarna?
Klarna will charge you late payment fees if you delay paying your loan. However, Klarna may block your access to its payment options or report you to a collection agency if your payment remains unpaid.
Have more questions about Klarna Canada? Drop them in the comment section.
