In recent years, one name has stood out in online shopping: When it comes to the payment method, Klarna is on the shortlist of many retailers. But who is actually behind the name and what do you have to pay attention to when you pay with Klarna?
Klarna is a Swedish company based in Stockholm that offers financial services. It was founded in 2005. Five years later, Klarna also expanded to Germany. According to its own statements, the company is now active in 22 countries and employs over 5,000 people. Over 400,000 online traders use the services of the Swedes.
Klarna handles around two million transactions every day. The company is something of a middleman between dealers and customers. Since both of them do not know each other when shopping online, they need to be sure that the goods or the money will actually reach the other person. Klarna guarantees this security.
Also read: Which payment method is the best for online shopping?
Pay with Klarna by invoice or in installments
The Swedes handle the purchase on the Internet. You as a customer have three options to choose from when making an online purchase. Firstly, the purchase on account. You shop in an online shop and Klarna pays the price to the retailer. As soon as he has sent the goods, you will receive an invoice from Klarna, which you must pay within 14 days.
On the other hand, you can also pay in installments with Klarna. As with purchases on account, Klarna advances the amount to you. You pay it off in installments with a term of between six and a maximum of 24 months. You have the option of setting the installments or transferring a flexible monthly amount. You can also pay the outstanding balance at once at any time.
Bank transfer, credit card or direct debit
The third option is immediate payment either by bank transfer, credit card or direct debit. When paying by credit card, enter your credit card details as usual. Klarna uses the “Sofort” service for transfers and direct debits, which the Swedes took over in 2014. It works just like PayPal, for example. You first enter your country and the name of your bank and then your login data for online banking. Klarna transmits this to your bank in encrypted form. Payment then works in exactly the same way as you know it from online banking.
Convenient payment with Klarna is not free
The advantages of Klarna are obvious. You can wait for the goods to be received, inspect them and send them back if you don’t like them before paying the bill. There is no need to wait for a refund from the retailer. In addition, you only have to disclose a few details about yourself: name, date of birth, address and e-mail address are sufficient. The goods come by post, the invoice by e-mail.
However, it is not true that you as a customer do not incur any fees. The payment service charges fees from the online retailers, who add these costs to the product prices. You also have to pay additional fees and interest when paying in installments. Klarna requires your consent for a credit check. If your SCHUFA entry is negative, you may not be able to use the service.
Beware of overuse
If you pay a lot online with Klarna, you should keep a close eye on your bills. Because if you don’t pay within the 14-day period, the Swedes won’t hesitate and warn you – including reminder fees of at least 6.95 euros. In addition, if you make too many purchases on account, Klarna may prohibit you from using this payment method and you will have to choose a different one.
Since an online payment can take up to three days, but Klarna is very quick when it comes to sending reminders, it is possible that you will be wrongly warned. Then you must find out about that Customer service or contact Klarna by telephone on 0221 669 501 10. The hotline is staffed from 8 a.m. to 6 p.m. and on weekends from 8 a.m. to 5 p.m. In the evening you can reach the payment service via the 24-hour chat on the website, which is also part of the new app. We have already taken a closer look at the Klarna app.
Read more: What is Klarna’s new banking app good for?
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