How Klarna Works

Klarna is a provider of Buy Now Pay Later (BNPL) and other forms of point-of-sale financing that allows you to repay a purchase in installments. If you're comparing BNPL options, you won't find a much smoother and more personalized shopping experience than Klarna's.


When signing into the app, you're met with a pallet of today's top brands and the ability to search by, not only retailers, but individual products as well. That means you're just a few taps away from finding that unique MacBook adapter or specific brand of dog food your pup demands.

But if you're still pondering the right product to buy, Klarna equips you with their curated "Inspiration" tab, allowing you to discover deals and follow specific areas of interests. Everything you find can be nicely organized in the "Wish list" tab, to share with others or save for purchasing at a later date.


Like other BNPL apps, Klarna's allows you to browse retailers' websites directly in the app. When time comes to pay, you'll simply tap the "Pay with K" button. If Klarna is already accepted at checkout, you'll simply sign in to apply and then pay with Klarna. When it's not, you'll be able to apply for a virtual card that can only be used at that retailer, up to the amount requested, and paid back in the same bi-weekly BNPL format.

Klarna's virtual card option is also usable at many physical retailers that accept contactless mobile wallets like Apple and Google Pay. While the Klarna app doesn't include a map view of local stores that accept their virtual card (something Afterpay provides in its app), you'll find their coverage in the U.S. to be better than most any other BNPL app. Target? Check. Macy's? Check.


Where the Klarna app also separates itself is after checkout. By linking your e-mail account, you'll be able to track the delivery status of online purchases made with Klarna (as well as non-Klarna purchases). As is the case with other BNPL apps, you can pay off your debt early, should you wish. Unlike many other BNPL apps, you'll earn 1 rewards point ("vibe") for every dollar of repayment and a $10 Amazon gift card after paying off your first purchase in full.

NOTE: This post was based on Version 28.18.145 of the Klarna iOS mobile app