KLARNA has revealed a major change to its famous buy now, pay later scheme.
From today, British and American Apple users can use the savvy AI-powered shopping tool through Apple Pay when placing an order.
Customers can check out with Apple Pay online and through apps if they have iPhones with iOS 18 or later or iPads with iPadOS 18 or later.
Shoppers will have access to Klarna’s flexible payment offerings, including pay later in three or four instalments with no interest or over longer periods with APRs starting at 0%.
Klarna is set to launch the same feature in Canada within the next few months as part of a global expansion.
Sebastian Siemiatkowski, Co-founder and CEO of Klarna, said: “Consumers around the world have been asking for Klarna on Apple Pay, so I’m super proud to let them know it’s here!
“Our fair, flexible and interest-free payments options are now even easier to use at your favourite merchants when checking out on Apple Pay online and in apps in the US, UK, and soon Canada.Â
“This is a big step toward our mission to offer consumers Klarna at every checkout.”
Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet, added: “We’re excited to give users in the US and UK more choice in how they pay with the addition of Klarna’s flexible payment options right at checkout on Apple Pay.
“With this rollout, users have the option to pay for purchases over time, and they get to enjoy the seamless and secure experience of Apple Pay that they already know and love.”
The new integration hopes to make flexible payment options more accessible so Klarna purchases can be made directly on an iPhone or iPad, in app and online with Apple Pay.
All eligible users need to do is select Other Cards & Pay Later Options when they check out on Apple Pay with an iPhone or iPad.
THINK BEFORE YOU BORROW
BORROWING sounds like a simple way to help pay bills – but beware falling into debt you cannot pay back.
It’s always vital to ask yourself if you actually need to borrow before committing to a new credit card, personal loan or overdraft.
If you cannot afford to pay off debt you already have, you should avoid at all costs taking on any more.
When customers apply for credit through a BNPL provider, they usually undergo a “soft” credit check that leaves no footprint on their credit file.
As a result of this, other providers won’t see if you’ve borrowed money this way. That’s why it is easy to amass debts with different firms.
Even though BNPL is advertised as interest-free, if you miss payments, you could still be charged late fees. Your debts can also be passed on to a collection agency.
Some BNPL firms, including Klarna, tell credit reference agencies about late payments.
Shoppers also miss out on major consumer rights protections that come with traditional credit.
Then they must select Klarna to access the Klarna products that are available to them.
Once they agree to the terms, they can double click the side button and authenticate with Face ID or Touch ID to confirm their purchase.
Before approving the purchase, Klarna will make a new lending decision, using its industry-leading underwriting checks.
This decision will not impact a customers’ credit score.
With this handy integration, users can enjoy all the privacy and security features they love about Apple Pay.
As with all Apple Pay purchases, when a user pays with Klarna, Apple does not keep a record of a user’s transaction history.
Klarna clarifies that loans are not offered by Apple and the feature may not be available for all types of purchases, such as subscriptions and recurring transactions.
And while it’s available with Apple Pay online and in apps, via suitable iPhones or iPads, it is not available in-store.
Since last month, US-based customers have been able to purchase Apple products using flexible payment options on Klarna.com and Apple from Klarna, a storefront in the Klarna app.
With 85 million active consumers, Klarna is the biggest global buy now, pay later (BNPL) provider in the world.
Earlier today we revealed that changes to BNPL rules to protect shoppers are set to kick in within months under major new plans by the government.
The new Labour government has confirmed that it intends to legislate to bring the BNPL sector under the City watchdog’s rule by early 2025.
This would mean the regulation would come into effect in early 2026.
Proposals to regulate BNPL products were first touted in 2021, but have been repeatedly delayed.
We revealed earlier this year that the previous government had shelved the plans over fears that it would drive BNPL firms out of the market during a cost of living crisis.
But the lack of regulation around BNPL is bad news for shoppers as it means these firms don’t have to follow the same rules as major credit lenders and customers aren’t protected if things go wrong.
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How to get free debt help
There are several groups which can help you with your problem debts for free.
- Citizens Advice – 0800 144 8848 (England) / 0800 702 2020 (Wales)
- StepChange – 0800138 1111
- National Debtline – 0808 808 4000
- Debt Advice Foundation – 0800 043 4050
You can also find information about Debt Management Plans (DMP) and Individual Voluntary Agreements (IVA) by visiting MoneyHelper.org.uk or Gov.UK.
Speak to one of these organisations – don’t be tempted to use a claims management firm.
They say they can write off lots of your debt in return for a large upfront fee.
But there are other options where you don’t need to pay.