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How to Use Klarna for Payment Plans

Klarna is one of the top options to enjoy buy now pay later purchases with its short-term plans requiring no credit check and interest-free.

You almost cannot have a list of the best buy now pay later apps in the UK without a space for Klarna, thanks to its amazing features that complement its financing services.

With this option being interest-free when you use it for purchases and an opportunity to enjoy split payments for up to 36 months, it has become preferred for many users, especially due to its short-term plans requiring no hard credit inquiry.



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Tip: Klarna can be used to finance purchases at several retailers online and when you visit physical outlets. It offers alternate channels to enable you to enjoy its services where it is not directly accepted, including the virtual card, Chrome extension, and in-app shopping.


The platform, just like Clearpay is one of the top methods for deferring payments and avoiding handling upfront costs, especially for high-ticket purchases or when you want to channel funds for other needs.

Many people prefer it for its Pay in 3 payment plan which will allow you to spread payments for up to two months with repayment expected on a monthly basis.


Read more about Klarna

It also offers the Pay in 30 days which is an option if you prefer to pay the full cost of your order in a month’s time.

While you are not required to make a downpayment when using Pay in 30 days, the process is different from Pay in 3 as you are expected to make an initial payment on the first day of your order.

However, both of the options involve a soft credit check at the application stage to determine your eligibility and since this will have no real impact on your credit score, they are good options to utilize, especially for items that cost less.

Klarna also offers long-term financing which can be used for high-ticket purchases and the representative APR varies between 18.9% to more than 21.9%. This option requires a hard credit check hence, it will impact your bureau score.

The platform has many interesting features that make it one of the best options when it comes to buy now pay later financing with its virtual card being one such.

With the Klarna card, you have two variations including the single-use valid card which can be generated and used for finalising your purchase checkout process or you opt for its static type.

While the former is suitable for one-time checkout, the latter is best for recurring use cases like connecting it to one of the top digital payment wallets for use in-store.

The Klarna card is not the only alternate route the platform provides as there is also the browser extension which you can install on your Chrome for use when you visit one of your favourite retailers online.

One top reason you may want to consider installing the extension is the saving features that come with it as the extension is powerful enough to let you know if a retailer you are visiting offers coupon codes you can redeem for discounts and also cashback towards your pending payments.

In addition to the extension add-on, you can also shop several merchants including well-known brands’ shopping pages directly on the Klarna app and spread the cost of your purchases into flexible instalments.

Where to Use Klarna for Buy Now Pay Later


Below are some of the top online shops that accept Klarna for buy now pay later:




Wowcher is your go-to online destination for discounted deals on a multitude of products and services, spanning travel, dining, beauty, and more. With daily offers and discounts, Wowcher delivers savings on an extensive array of lifestyle experiences.



Temu is a shopping platform offering a wide variety of products at discounted prices, spanning fashion, homeware, electronics, and more. With free UK shipping and a generous 90-day return policy, Temu ensures a convenient and budget-friendly shopping experience.



LookFantastic is a premier online retailer offering an extensive selection of beauty and skincare products. With a curated range of premium brands and beauty essentials, it provides customers with convenient access to the latest trends and skincare innovations.



Boohoo is a renowned online fashion retailer known for its trendy and affordable clothing collections. With a diverse range of styles catering to various tastes, Boohoo offers fast fashion options for individuals looking to stay stylish without breaking the bank.



Wayfair is a leading online retailer specializing in furniture, home decor, and furnishings. With a vast selection of styles and prices, it offers customers a convenient and comprehensive platform for enhancing their living spaces with quality and stylish products.

Features Available On Klarna

There are so many features you can access when using the Klarna platform for payment plan purchases.

Some of the interesting ones include:


Klarna Pay in 3

Pay in 3 is one of Klarna’s payment plans and with this option, you can spread the cost of your purchases for up to three payments.

It allows you to enjoy instalment payments for your orders starting from the first day until the end of 2 months.

This plan is interest-free and to determine eligibility, only a soft credit check is required which will not have any real impact on your credit score when you apply for this financing option.

If you are approved for Klarna Pay in 3, you are required to make a downpayment, usually, 33.33% of the order value and other repayments will be expected every 30 days.


Pay in 30 Days

Klarna’s Pay in 30 days is one of its top payment plans which you can utilize at many of the retailers that accept it for financing.

It is an alternative to the Pay in 3 as with this, no downpayment is required until the 30th day of the order date.

However, you are expected to make the full payments at a go at the end of the 30-day window, unlike how the Klarna Pay in 3 works.

There is also no hard credit check when using this option for payment plan purchases hence, a good alternative to use without real impact on your credit score.


Klarna Long-term Financing

This option enables you to make purchases and pay for them over an extended period, typically ranging from 3 to 36 months, depending on the terms agreed upon at the time of purchase.

This provides you with greater flexibility and affordability, allowing you to spread the cost of your purchases over time and manage your budgets more effectively.

Klarna financing option is a line of credit hence, you can also enjoy an interest-free payment plan using it if you pay your balance before or by the statement due date.

If you are unable to pay the balance by the expected due date, you could end up with a representative APR ranging from 18.9% to no more than 21.9%. 


Soft Credit Check and Hard Inquiry

Klarna performs a soft credit check, also known as a soft inquiry or soft pull, which is a type of credit check that does not impact an individual’s credit score when you apply for its Pay in 3 Months and Pay in 30 Days.

Unlike a hard credit check that is performed when you apply for Klarna Financing which can show on your report when it is being reviewed by other lenders, a soft credit check is typically used for informational or verification purposes.

During a soft credit check, Klarna will review certain information from a person’s credit report, such as their credit history and account activity, without affecting their credit score.

It is used for background checks, pre-approval processes, and identity verification.


Single-use Virtual Card

The Klarna single-use virtual card allows customers to generate a unique card number for each online purchase, enabling you to use your purchasing power where it is not directly accepted.

When a customer decides to make a purchase using Klarna, they have the option to generate a single-use virtual card specifically for that transaction.

The customer can do this directly within the Klarna app or website. Once the virtual card is generated, the customer receives a unique card number, expiration date, and security code (CVV). They can use these details to complete the online purchase at the merchant’s checkout page.

After the transaction is completed and the payment is authorized, the virtual card becomes inactive and cannot be used for any future transactions. 

The Klarna single-use virtual card offers several benefits, including using it at more retailers, enhanced security, and privacy protection.

Each virtual card generated is unique to a specific transaction, reducing the risk of unauthorized use or fraud.


Klarna Card for Recurring Payments

Similar to Clearpay, Klarna also has an alternative card you can utilize for recurring bills which works differently from the single-use version.

This card is more powerful when compared to many of the virtual cards offered by the other buy now pay later services as it can be used at any retailer of your choice with no limitations.

Unlike the one-time valid Klarna card, this is not free as you will have to pay a monthly maintenance fee of £2.99 which is equivalent to £35.88 in annual fees.

There is also a physical type of the card you can request through the Klarna app and while the details will be different from the digital version, both are similar in terms of their effectiveness for financing.

You can also use these cards with any digital wallet and they work when shopping international merchants as well with no extra charge.


Browser Extension

The Klarna browser extension is another interesting add-on that increases the rate of its service acceptance when you are shopping online.

This extension, available for the Chrome browser can be installed and used any time you want to utilize your Klarna purchasing power to purchase products on your favourite retailers’ shopping portals.

It is a very easy tool to use and when you have it installed and on the checkout page of a shopping portal, it will auto-activate reminding you that you can use Klarna to complete the order process.

Alternatively, you can click the icon from your extension bar to make use of it for payment.


Coupon Codes

You can also enjoy savings through the Klarna platform, thanks to its coupon codes and cashback feature.

It regularly features vouchers from well-known shopping portals which you can apply at checkout for discounts when shopping through its app or directly on a merchant’s website.

This is also built into the Klarna browser extension and if you have it installed on Chrome, it will show active coupon codes if a retailer you visit is listed.



Klarna also has an amazing cashback feature that lets you earn rewards when you use it for payment plan purchases.

Typically, the platform will reward you with 1 point for every £1 spent which will be added to your balance for every registered instalment from your pending repayments.

Your earned points can then be redeemed for different perks like access to exclusive features, discounts at several merchants, and more.


Wide Merchant Network

What sets Klarna apart is its seamless integration of online and offline shopping experiences.

While you can easily make purchases from your favourite retailers through the different methods provided by Klarna online, you also have the flexibility to use Klarna for transactions at physical store locations.

Its merchant network is exceptionally broad, comprising an extensive array of retailers and service providers across various industries.

This expansive network ensures that you have a wide range of options available to you when making purchases, spanning diverse categories such as fashion, beauty, electronics, and home goods both online and in physical stores.


In-app Shopping

The platform’s in-app functionality serves as a workaround for customers looking to leverage their purchasing power at popular retailers that do not directly accept it.

Within the Klarna app, users can access the shopping interface to discover a curated list of renowned retail platforms.

From there, they can freely choose their preferred retailer, seamlessly browse and purchase items, and conveniently split the costs, all without leaving the mobile app.

This streamlined process enhances the shopping experience, empowering users to shop confidently and efficiently while enjoying the benefits of Klarna’s flexible payment options.


Vast Inventory of Gift Cards

Among the various buy now pay later service providers, Klarna stands out by offering gift cards as an alternative means for customers to utilize their purchasing power beyond the network of merchants that directly accept it for payment plans.

Through Klarna, users can access gift cards in different denominations from their favourite brands.

This innovative feature provides customers with additional flexibility and convenience in how they manage their payments and access desired products and services.

With their assigned spending limit, users can select from Klarna’s extensive collection of gift cards, spanning a diverse range of brands and retailers.

Once a gift card is chosen, the payment can be split into manageable monthly instalments, allowing users to enjoy their purchases while spreading out the financial commitment over time.

By offering gift cards as an alternative payment method, Klarna expands the possibilities for users to shop at their preferred merchants and enjoy the benefits of BNPL services, even when direct acceptance is not available.

This approach enhances the overall accessibility and utility of Klarna’s platform, empowering users to make purchases according to their preferences and financial needs.


Late Payment Penalty

Although Klarna offers numerous beneficial features for managing purchases, it is crucial to be aware of its late payment fee policy.

In the event of late payments, Klarna imposes a minimum fee of £5 after a seven-day grace period has elapsed and a minimum of four reminders have been issued.

Notably, each fee is capped at 25% of the order value, with a maximum of two fees per order.

This policy underscores the importance of adhering to payment deadlines to avoid incurring additional charges and maintain a positive financial standing with the platform.

Frequently Asked Questions on Using Klarna


Here are some frequently asked questions regarding the use of Klarna for buy now pay later financing:

What is Klarna?

Klarna enables shoppers to make purchases online and in-store through flexible payment options such as buy now pay later instalment plans and financing.

It aims to simplify the shopping experience by providing convenient and transparent payment methods while empowering consumers to manage their finances more effectively.

Does Klarna check credit?

When applying for Klarna’s Pay in 3 Months and Pay in 30 Days payment plans, it will perform a soft credit check.

Soft credit checks are designed to assess eligibility for these payment options without affecting credit scores.

However, for its long-term financing, which involves a credit line, a hard inquiry is required.

Unlike soft, hard inquiries can impact credit scores, as they reflect an individual’s application for credit.

Therefore, it is important to be aware that applying for long-term financing may have an impact on your credit score.

Is Klarna safe and legit?

Yes, Klarna is considered a safe and legitimate payment platform.

As a well-established fintech company, it operates in accordance with industry standards and regulations to ensure the security and protection of its users’ financial information

Does Klarna affect your credit?

Using Klarna’s Pay in 3 Months and Pay in 30 Days payment plans typically does not affect your credit. It conducts a soft credit check for these payment options, which does not impact your credit score.

However, if you choose its long-term financing option, such as its credit line-based instalment plans or financing offers, it involves a hard credit inquiry.

Hard inquiries can have a minor, temporary impact on your credit score.

Therefore, while using the Pay in 3 Months and Pay in 30 Days plans generally does not affect your credit, opting for its long-term financing may have a slight impact due to the hard credit inquiry.

How many payments is Klarna?

Klarna offers various payment options, including:

1. Pay in 30 Days: This option allows you to make purchases and pay the full amount within 30 days without any interest or fees.

2. Pay in 3 Installments: With this option, you can split your purchase into three equal payments, with the first payment due at the time of purchase and the remaining two payments spread out over the following two months. There is no interest charged for this option.

3. Long-term Financing: the platform also offers long-term financing options, where you can finance larger purchases over an extended period. These financing offers may vary in terms of payment duration and interest rates, and they typically involve a credit application and a hard credit inquiry.

What is the maximum credit amount offered by Klarna?

The maximum spend amount you can utilize when using Klarna for financing varies depending on your assigned purchasing power, your chosen payment plan option, and other factors determined by the platform.

However, you may not be able to access more than £4,000 when using it to make payments at most of the retailers that accept Klarna.

Does Klarna have a virtual card?

Yes, Klarna offers a virtual card as part of its payment options.

This virtual card serves as an alternative means to utilize your purchasing power outside its network of merchants.

There are two forms of virtual cards provided by the platform, the single-use version and the multiple-use that provides additional functionality, allowing users to use it for recurring bills and purchases at any retailer of their choice without limitations.

Unlike the single-use version, which is free, the alternative Klarna card incurs a monthly maintenance fee of £2.99, equivalent to £35.88 annually.

Can I pay off Klarna early?

Yes, Klarna allows customers to pay off their pending instalments early without any additional fees or penalties.

This flexibility enables users to manage their finances more effectively and pay off their purchases faster.

By making early payments, customers can improve their overall financial management and potentially increase their purchasing power on the platform.

To pay off instalments early, customers simply need to log into their account and select the option to make a payment.

This straightforward process empowers users to take control of their payments and tailor their repayment schedules to suit their individual needs and preferences.

Can Klarna be used anywhere?

Klarna is accepted directly by a substantial merchant network.

For instances where direct acceptance is not available, customers have several alternatives by utilizing the virtual card provided by the platform, employing the browser extension, or shopping directly from a curated list of top retailers accessible through the Klarna app.

These options provide users with flexibility and convenience, ensuring they can access Klarna’s payment solutions across a wide array of merchants, both online and in-store.

What is the downpayment to use Klarna?

When utilizing Klarna’s Pay in 3 option for handling purchases, the initial payment required is a minimum of 33.33% of the total order amount.

For both Pay in 30 Days and its long-term financing, no downpayment is necessary. The first payment is due at least 25 days later, contingent upon the due date indicated on your statement.

Is there a minimum spend amount to use Klarna?

Klarna does not impose a specific minimum cart value requirement for utilizing its payment plan purchases.

However, many retailers that accept it for payment plans typically require a minimum cart value of £35.

You will be informed by the retailer, usually on the checkout page the required minimum cart value before you can access the option for financing.

How many instalments is Klarna?

Klarna offers various payment options, including instalment plans that allow customers to split their purchases into multiple payments.

The number of instalments offered by the platform depends on the specific payment plan chosen and may vary accordingly:

1. Pay in 3 Installments: This option enables customers to divide their purchase into three equal payments, with the first payment due at the time of purchase and the remaining two payments spread out over the following two months.

2. Pay in 30 Days: this is a one-time payment that is expected 30 days after the order date.

3. Long-term Financing: this instalment plan can range from 3 to 36 months depending on the value of your order and the specific retailer where you are using it for payment plan purchases.


There is no doubt the platform has so many amazing features that make it a top choice buy now pay later service to use for financing purchases.

With only a soft credit check required for its Pay in 3 and Pay in 30 Days, you do not have to be bothered about those impacts on your bureau profile but note that its long-term financing comes with a representative APR between 18.9% to more than 21.9% can leave a temporary impact since it performs a hard inquiry.

Nonetheless, Klarna is an amazing option when you want to finance your purchases without worrying about paying any interest.

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You are the first in our research hence, we rally around doing rigorous checks, testing and analysis to help you decide on products and services. However, Meedsy is not a lender, broker, bank, financial institution, or FCA-regulated hence, providers' final views are superior to ours and seek professional advice when in doubt.
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