Buy Now Pay Later providers are an ever growing presence when shopping online. One of the most common companies you will see is Klarna.
Klarna allows its customers to either pay in 30 days time, or to split the cost of your purchase into 3 payments. The first payment will be taken straight away, followed by the second in 30 days time and a final payment 60 days after purchase.
Klarna charges its customers no interest since the make their money by charging the retailer 5% of each sale plus a standard fee. Clearly both retailers and consumers find this attractive, with Klarna now boasting around 8.6 million customers.
Until recently, Klarna only had a 1% rate of default, meaning that 99% of its customers paid the debt back, however with recent job losses due to Covid-19 and a struggling economy, Klarna’s default rate is on the rise. All signs point towards an increasing number of people getting into difficulties when faced with their overspending.
If you have Buy Now Pay Later debt and are looking for a solution, take a look at our Buy Now Pay Later information page.