Klarna review in 2024

Detailed review of Klarna

The Klarna app comprises a modern electronic payment system with some mobile bank features. Registration is free, there is no subscription fee, commissions for individuals for transfers and payments, and other commissions are relatively low. The service provides its features to individuals and corporate clients.

A distinctive feature of the service is the possibility of deferred payment. No other electronic payment system has such a function; it is more typical for neobanks. The advantage of the function is that it allows purchasing a product now, and paying for it later – within 30 or 60 days or 36 months. With the first and third options, there is even no need to make an initial payment.

Considering that an installment plan is provided without additional interest, many users believe that Klarna is much more profitable than most neobanks, which almost always have an additional fee for flexible payments and loans. Unfortunately, Klarna does not provide any opportunities to increase capital, and budgeting is limited by basic reporting.

Klarna by the numbers:

• 2005 – year the Klarna company was founded;

• 147 million – the number of the service users;

• 400 thousand – the number of active business accounts;

• 2 million – the number of transactions carried out per day;

• 45 countries – the number of countries in which the Klarna service operates.

The Klarna payment service app is one of the most downloaded electronic payment systems. The growth in the number of active users even during the crisis period indicates the stable position of the company in the market and the favorable conditions under which it provides services.

Useful Klarna functions:

• Payments and transfers. Like any electronic payment system, Klarna allows its users to make payments and transfers around the world.

• Online and offline payments. Service clients can pay for purchases in online stores, as well as at physical points of sale via NFC or by using a Visa or other plastic card.

• Full reporting. There is no detailed budgeting in the Klarna app, but there is an archive of transactions for all time.

• Grouping. The user can combine income/expense categories and get summary data using various calculation formulas.

• Points system. Each purchase in the online store gives the client points that can be used to partially pay for the next purchase.

• Affiliate program. Each account has a unique affiliate QR code. A bank client registered using this code will bring $30 to its owner.

• Starting bonus. If a client makes a purchase in a store where there is a promotion under the Klarna sponsorship, he receives $5 from the service to his account.

• Deferment for 30 days. When making a purchase, the client can receive the product now and pay for it within 30 calendar days.

• Deferment for 4 payments. The client has the opportunity to pay 25% of the cost of the product at once, and then transfer 25% to the seller's account every 2 weeks until the balance is cleared.

• Deferment for 3 years. It's possible to pay for the purchase for 36 months, but with an interest rate of 0%-24.99% (or 19.99% in some circumstances).

• Auto-conversion. If the currency on the client's card does not match the payment currency, the transfer will be converted at the market rate.

Note that Klarna provides the fastest online checkout. The transition from viewing the product to payment takes no more than 25 seconds, on average it is 3 times faster than other electronic payment services.

Advantages of the Klarna payment system:

• The app can be installed on any mobile device using the relevant digital store (Play Market or App Store).

• To make online payments from a desktop PC, all it takes is to install the official plugin for the browser.

• To register and verify an account, the user doesn't need to confirm the data by sending a photo/scan of identity documents.

• Registration takes only a few minutes, as well as any other actions in the account, including making online payments and transfers to other users.

• Payments and transfers are made almost instantly (any delay may be due to interbank interactions and regional legislation).

• There are no additional fees for Klarna payments within the country and when transferring abroad, the remaining fees are average or below average in the market segment.

• The Klarna app has never been hacked, nor has the company's servers where users' personal data is stored.

• The app has an intuitive interface and all the main functions are on the main screen, so it is very easy to work with it.

• Service clients receive detailed data on all transactions, which can be conveniently grouped and summarized.

• There are three options for interest-free installments for a period from 30 days to 36 months, but only the 36-month installment plan attracts interest.

• Klarna has one of the best user support centers, and the service helps its clients in case of a dispute with stores, in which case, a Klarna rep will contact the supplier of products/services directly.

• In addition to personal accounts, Klarna also provides corporate accounts for businesses with a convenient connection to the online payments function.

Types of accounts in the Klarna payment system

The Klarna service has only two account types – personal and business. A personal account is suitable for users who want to use Klarna to make payments to online and physical stores, as well as make transfers to the accounts of other users connected to the system. From this point of view, the service has standard functionality for apps of this type. The interface is simple and intuitive, transfers are fast, and the commissions are competitive.

A business account provides a slightly different list of services and is suitable for owners of online stores and physical points of sale. Connecting an account of this type allows clients to accept online payments from all users who have registered accounts in Klarna. This is advantageous for businesses because Klarna users make purchases 20% more often and their average receipt is 45% higher compared to users who prefer to pay in online stores using a different service or method.

Installments with a splitting of payments into 4 payments are an advantage not only for personal accounts. According to surveys, 40% of users would refuse to purchase without this feature. The average order volume increases by 45% with the possibility of splitting payments. Thus, connecting the online store to the Klarna electronic payment service increases the number and volume of orders.

Banking features

A full range of internet banking services is offered by mobile (neobanks) banks. Electronic payment systems predictably intersect with them in terms of payment in online and physical stores. But Klarna’s payment services are not equal to the vast capabilities of neobanks, as their respective goals and solutions have different goals and tasks. In particular, Klarna’s services do not provide its users with their own accounts, as only the client's card can be linked to the user account.

Nevertheless, today electronic payment systems are striving to implement various banking features. For example, budgeting is the ability to get detailed statistics on all transactions. The above-described conditions of deferred payments for 30 days, 4 payments, or 36 months also applies to banking. This significantly expands the user's financial potential and is useful for online stores that have connected a Klarna business account.

Social programs of Klarna

The service does not implement individual social programs; however, user support can be considered as such. In addition to standard technical support, the service offers a system of assistance to clients in settling disputes with stores. This may relate to the process of returning the product or refund (both at the discretion of the user and if there are claims from the store). A separate group of Klarna managers provides clients with advice in such situations and is even ready to contact the store directly to resolve legal issues.

How to open an account at Klarna

Go to the official Klarna website. In the upper right corner of the screen, you will see the "Get the app" button; click on it. A QR code will appear, you need to scan it with your mobile device. After that, you will be automatically redirected to the relevant digital store (Play Market or App Store) on the Klarna app page. You can also directly go to any of these stores, enter "Klarna" in the search bar and go to the app page, omitting the website.

Install and run the app, then follow the on-screen instructions. You will not have to send identity documents. To link a card to your account, go to the "Bank and card" section. Fill out the standard application form, confirm your identity using KlarnaIdent or VideoIdent, and then come up with a PIN code. The card is linked, now you just have to choose the design of the Klarna plastic card, which will be sent to you at the specified address within 7 days.

You can choose not to order a plastic card for yourself, but instead, pay using Apple Pay or Google Pay. When paying in online stores, a physical card is also not needed, Klarna allows you to pay using your bank card. If necessary, you can create a one-time virtual card. You must be 18 years old, otherwise, you will not be able to create an account in the service.

Technical support

If a client of the Klarna service has questions, he can refer to the FAQs section. Also on the website, there is a detailed article on all the features of the service, plus a newsfeed with the latest updates. The client is always able to contact technical support through the feedback form, ask a question in a live chat, or contact the call center. Communication via email and live chat is available 24 hours a day, 7 days a week. The working hours of the call center in your region need to be further clarified on the website. All communication channels are available both through the website and through the app.