Klarna lets you split purchases into smaller payments, either online or in physical stores, through its app. You can use it at partner retailers directly during checkout or create a virtual card to pay with Klarna almost anywhere Visa is accepted. Here’s how each option works and what it costs.
Download the App and Set Up Your Account
Start by downloading the Klarna app (available on iOS and Android) and creating an account with your email, phone number, and a linked debit or credit card. Klarna performs a soft credit check when you use its Pay in 4 option, which means it won’t affect your credit score. American Express and prepaid cards are not accepted as funding sources.
Klarna’s Payment Options
Klarna offers three main ways to pay, and the one you see at checkout depends on the retailer and the purchase amount.
- Pay in 4: Split your purchase into four equal payments collected automatically every two weeks. There’s no interest, and no fees as long as you pay on time.
- Pay in 30 Days: Buy now and pay the full amount up to 30 days later. No interest or late fees when you pay on time.
- Monthly Financing (Pay Over Time): Spread the cost over 3 to 24 months. This option is issued through WebBank and may include interest, so you’ll see an APR in your agreement before you confirm. Klarna reports your repayment activity on these loans to TransUnion and Experian, though the company says this information is currently only visible to you and doesn’t impact your credit score.
Paying at Online Stores
Many online retailers list Klarna as a payment option at checkout. When you see it, select Klarna, choose your preferred payment plan, and log in to your account. The retailer handles the rest, and your payment schedule appears in the Klarna app immediately.
If a store doesn’t offer Klarna at checkout, you can still use it by creating a one-time virtual card in the app. This generates a Visa card number you can enter on any site that accepts Visa.
How the One-Time Card Works
Open the Klarna app and search for the store you want to shop at. Tap to create a one-time card and enter the exact amount you plan to spend, including shipping. Klarna will show you the payment terms and any service fee before you confirm. The service fee on biweekly payments ranges from $0.75 to $3, and a minimum 25% down payment is required.
Once the card is created, go to the retailer’s site and check out normally. At the payment step, select credit card and enter the virtual card number, expiration date, and CVV just like you would with a regular card. Your billing and shipping addresses will prefill if Klarna already has them on file.
A couple of things to know: the card expires after 24 hours if you don’t use it, and Klarna may place an authorization hold on your linked payment card to verify funds. If you end up spending less than the amount you set, you can select “Refund unused amount” on the purchase page in the app to adjust your balance.
Paying in Physical Stores
You can also use Klarna at the register in certain brick-and-mortar stores through your phone’s digital wallet. Open the Klarna app, tap “Wallet,” then select “In-store.” Browse or search for the retailer you want to visit and follow the prompts to create a digital card. Klarna will add this card to Apple Pay or Google Pay on your device. (Android users need Google Pay set up beforehand.)
When you’re ready to check out, open your digital wallet and tap your phone on the card reader. Make sure your linked payment card has at least 25% of your order amount available. If the retailer isn’t listed in the app, your purchase will likely be declined, so check before you get in line.
What Late Payments Cost
Klarna’s late fee structure varies by plan. For Pay in 4, if a scheduled payment fails, Klarna tries to collect it again. If that second attempt also fails, the missed amount rolls into your next payment along with a late fee of up to $7. Your total late fees will never exceed 25% of the original order value. Pay in 30 Days currently carries no late fees, though Klarna notes you should check your individual terms. Monthly financing may include late fees and interest as outlined in your credit agreement.
Missed payments on any plan can also reduce your spending power with Klarna over time. The app may lower your approved amounts or decline future purchases if your payment history slips.
How Returns and Refunds Work
If you need to return something you bought through Klarna, start by following the retailer’s normal return process and shipping the item back. Then open the Klarna app, find the purchase, and select “Report a return.” You’ll need to provide your return tracking number or receipt number as proof.
Once you report the return, Klarna pauses your remaining payments until the issue is resolved. If you’ve already made payments toward the purchase, Klarna refunds the money to the same card or account you originally used. For partial returns, only the returned portion is adjusted, and your remaining installments are recalculated accordingly.
Keeping Track of Your Payments
The Klarna app serves as your central dashboard for everything. You can view upcoming payment dates, see your full purchase history, and adjust details on active orders. Turning on push notifications is worth doing since Klarna sends reminders before each payment is due, which helps you avoid those late fees. You can also make payments early at any time through the app without penalty.