![]() ![]() The Klarna app works like this: A consumer makes a purchase and they can choose to pay in either four installments, within 30 days, or under the terms of a more formal finance agreement of between six and 36 months for "high-ticket items" (where the default risk to Klarna as a lender may be higher). One of the most popular Buy Now, Pay Later services out there, Klarna offers its users payment plans for online or in-store purchases. Online or in-store, it's easy with Klarna," - Klarna "Split any purchase into four interest-free payments. Survey respondents also said their usage increased due to the pressures of the pandemic, and a quarter said it was due to lost income. It revealed that 55.8% of consumers said they have used Buy Now, Pay Later, with the highest growth recorded in the 18 - 24 and 55+ age brackets. The Ascent conducted a study between 20 that surveyed US consumers on BNPL use. In almost every case, these services highlight flexible payments and no interest or service charges.įor example, you could buy an $800 laptop and use a BNPL service to pay a deposit of $200 and then the rest of the balance in three equal installments every two weeks.īNPL may also provide traditional loan and credit agreements, including interest (an APR percentage tacked on), for more expensive purchases. Popular BNPL service providers include Klarna, AfterPay (also known as Clearpay in the EU), Affirm, PayPal's Pay in 4, and Sezzle. You will be asked if you'd prefer to break up the initial cost of a product into smaller payments over time - the most popular offering currently being a 'pay in four' installment model - and after a quick sign up process asking for basic information, users can be approved or denied in a matter of seconds. You will usually spot Buy Now, Pay Later options at e-retailer checkouts. The BNPL provider and consumer may agree to weekly payments, a payment every two weeks, or a payment every month. They offer short-term financing options, usually in installment loans fixed over agreed periods. ![]() However, they generally act as middle-man lenders and financial services, offering a line of credit for purchases made at third-party stores. CloseīNPL varies from provider to provider. If you see inaccuracies in our content, please report the mistake via this form. If we have made an error or published misleading information, we will correct or clarify the article. Our editors thoroughly review and fact-check every article to ensure that our content meets the highest standards. Our goal is to deliver the most accurate information and the most knowledgeable advice possible in order to help you make smarter buying decisions on tech gear and a wide array of products and services. ZDNET's editorial team writes on behalf of you, our reader. Indeed, we follow strict guidelines that ensure our editorial content is never influenced by advertisers. Neither ZDNET nor the author are compensated for these independent reviews. This helps support our work, but does not affect what we cover or how, and it does not affect the price you pay. ![]() When you click through from our site to a retailer and buy a product or service, we may earn affiliate commissions. And we pore over customer reviews to find out what matters to real people who already own and use the products and services we’re assessing. We gather data from the best available sources, including vendor and retailer listings as well as other relevant and independent reviews sites. ZDNET's recommendations are based on many hours of testing, research, and comparison shopping. ![]()
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