Klarna Canada Review 2024: Everything You Need to Know
Klarna Canada Review Rating: 4.3/5
Are you looking for the best buy-now-pay-later app in Canada? This Klarna Canada review is for you.
Before now, Canadians have to rely on credit card overdraft when looking to make urgent purchases with insufficient credit.
Today, you can avoid overdraft fees by using buy-now-pay-later apps to make your emergency purchases online or in-store.
With the popularity of Klarna in our neighbourhood, the US, many Canadians like you are wondering if they can also use Klarna for buy-now-pay-later in Canada.
But you don’t have to worry anymore as this article discusses everything you need to know about Klarna Canada including how it works, eligibility, its pros and cons and alternatives.
Overview of Klarna Canada
Let’s have a quick look at the profile of Klarna before going deep into the review.
| Legal name | Klarna |
| Year founded | 2014 |
| Headquarters | Stockholm, Sweden |
| # of supported countries | 45 |
| # of partner stores | 500,000+ |
| # of active users | 150 million |
| Interest on loans | None |
| Late payment penalties | Collection actions |
| Installment payments | Instant payment of the first of four installment payments at checkout |
| Repayment options | All major credit and debit cards (excluding AMEX and prepaid cards) |
What is Klarna?
Klarna is a Sweden-based fintech company founded in 2005 with headquarters in Stockholm.
The company offers direct payment and in-store shopping solutions. However, Klarna is more popular for its in-store services that allow users to enjoy a unique buy-now-pay-later (BNPL) experience.
As a multinational fintech company, Klarna tailored its services to different parts of the world attracting over 500,000+ merchants and 150 million active users.
The company enjoys the backing of big companies such as Visa, Bestseller, Sequoia Capital, Permira and Atomico.
As you will learn shortly, Klarna offers pay after delivery services without interest and late payment fees which is strange among most BNPL apps out there.
Is Klarna Available in Canada?
Klarna is available in Canada for its in-store services that allow users to pay after delivery without initial deposit, interest, and late payment fee.
Like our American neighbours, Canadians can also use Klarna to make online and in-store purchases across thousands of retail stores.
The interesting part is that Klarna Canada doesn’t have initial deposits, late payment fees and you can repay the loan with 4 interest-free installment payments.
How Does Klarna Work in Canada?
Klarna allows you to make cashless purchases at thousands of merchant stores online or in-store in Canada.
To enjoy this service, you need to first sign-up on Klarna and verify your account. After that, you can log in to your Klarna Canada and start making purchases online or in-store using Klarna as your payment option or the Klarna card.
When you make a purchase, you will receive an email detailing your payment schedule. You will be required to make the first installment payment at checkout while the remaining three installment payments will be deducted automatically from your linked card.
That being said, Klarna allows you to repay a portfolio or full part of the loan ahead of the due date without any penalty.
Which Stores in Canada use Klarna?
As mentioned previously, Klarna supports over 400,000 stores across different countries. The following are some of the stores Klarna supports in Canada.
- Canada Goose
- Adidas
- Jewlr
- Harry Rosen
- Kiehl’s
- Lancôme
- Chatters
- Bed, Bath & Beyond
- 304
- Abigail Ahern
- A Pea in the Pod
- ADAY
- Ana Luisa
- Beauty Works
- And more
You can make online or in-store purchases at your favourite stores using Klarna or the Klarna card as your payment method.
Is Klarna Safe and Legit?
Yes, Klarna is safe and legit. This is because the company uses advanced encryption to protect your information on its web portal and mobile app.
In addition, Klarna has fraud liability protection that protects your account against any unauthorized charges and purchases.
According to Klarna, it doesn’t transfer your details to a third party or allows them to be held in any store.
As per legitimacy, there have not been any regulatory issues with Klarna in Canada since its expansion to the country.
What are Klarna Fees in Canada?
Unlike other pay after delivery services in Canada, Klarna doesn’t charge interest rates or late payment fees. This makes it a unique and more reliable BNPL app.
It goes without saying that Klarna consumers don’t have any fee obligations.
That said, the only people Klarna charges are its 400,000+ partner stores.
How to Open a Klarna Account in Canada?
To open a Klarna account in Canada, you need to first meet the following minimum requirements:
- Be 18 years or older
- Have a bank account
- Possess a good credit history
- Have no outstanding debt with Klarna
Once you meet the above requirements, you can click here to sign-up for a Klarna account using your email.
You can either sign-up on the Klarna website or through its mobile app available on Google Playstore and App Store.
How Can I Repay a Klarna Loan in Canada?
By default, Klarna will automatically deduct the installment payments biweekly through the credit or debit card you linked to your Klarna account.
However, Klarna allows you to repay a portfolio or full part of the loan ahead of the due date without any penalty.
With the exception of AMEX and prepaid cards, Klarna accepts all other major credit and debit cards.
Can I Repay a Klarna Loan Earlier or Later?
It depends on your situation. Usually, Klarna will automatically deduct the 3 installment payments biweekly until the full loan is repaid.
But if you can afford to repay a portion or the complete loan ahead of the due date, you can do so without any penalty.
However, some purchases may not allow you to repay the loan ahead of time. To this end, it’s essential you confirm from your retail store the payment options available for your purchase.
What Happens if I Can’t Pay a Klarna Loan on Time?
As mentioned previously, Klarna doesn’t charge late payment fees. This means your loan will not be compounded if Klarna failed to make an automatic deduction from your linked credit or debit card.
However, if you fail to pay your loan in time, Klarna will notify you through email as it keeps trying to deduct the loan from your linked credit or debit card automatically. The unpaid amount will be added to the outstanding installment payments.
If after several trials Klarna couldn’t deduct the loan from your credit/debit card, the company will report you directly to a debt collection agency. This may lead to legal charges against you and eventually affect your credit score.
Also, having late payment will lead to your suspension or blockage from using Klarna in the future.
Fortunately, Klarna gives you the grace of extending your loan repayment to avoid being reported to a collection agency.
Pros and Cons of Klarna Canada
Obviously, Klarna is ahead of most pay after delivery services in Canada. However, you need to know its pros and cons before deciding.
Pros
- Interest-free loan: Klarna offers interest-free pay after delivery loans with 3 biweekly installment payments.
- No fees: Unlike other BNPL apps, Klarna doesn’t charge prepayment or late payment fees.
- Multiple payment options: Besides the installment payments that Klarna deducts biweekly, you can also clear off your loan by making a one-lump or partial payment. Also, you can extend your Klarna loan to avoid being reported to a collection agency.
- Multiple partners: By partnering with multiple retail stores in Canada, you can be sure that Klarna supports your favourite stores.
- Royalty reward program:They recently launched a royalty reward program that reward you for completing simple tasks such as shopping.
Cons
- Spending limits: Your Klarna credit limit may be lower depending on several factors such as the size of purchase, time of purchase, past repayment record and how long you’ve been using Klarna.
- First instant installment payments: Klarna requires you to make the first of four installment payments at checkout.
- Report to debt collection: Instead of charging late payment fees, Klarna will report you directly to a debt collection agency if your loan repayment is overdue.
- Doesn’t improve credit score: Your loan repayment on Klarna Canada will not show in your credit score because the company doesn’t report to credit bureaus.
My Klarna Canada Review Rating
I rate Klarna Canada 4.3 stars out of 5-stars based on comparative analysis and the total rating of the following features.
Klarna Canada Review Rating Methodology
Overall Rating
This makes my Klarna Canada review positive and recommendable to Canadians looking for the best pay after delivery services in Canada.
Klarna Canada vs Afterpay Canada: Which is Better?
| Feature | Klarna | Afterpay |
| Partners | 500k+ | 85k+ |
| Installment payments | Instant payment of the first of four payments required | Instant payment of the first of four payments required |
| Interest | N/A | N/A |
| Payment options | All major debit and credit cards (excluding AMEX and prepaid cards) | AMEX, domestic VISA, Mastercard (excluding international issued cards and Interac e-Transfers) |
| Late payment fees | None | Yes |
Afterpay is one of the popular pay after delivery services out there with a multinational presence. It is based in Australia and has over 14.6 million customers globally.
Like Klarna, you can also pay off your Afterpay loan before the due date without any penalty. Also, Afterpay allows you to extend your installment payment to avoid late payment fees.
However, the two pay-after-delivery services differ considerably, especially on payment and repayment options.
While Klarna doesn’t have late payment fees, Afterpay has. This makes Afterpay relatively more costly than Klarna.
Overall, you can see that Klarna is ahead of Afterpay on many grounds. However, the final choice is yours to make.
Learn more:
How to Choose the Best Pay After Delivery Services in Canada
Due to the similarities of most pay after delivery services in Canada, it may be difficult to narrow your selection. But it doesn’t have to be.
Consider the following factors when narrowing your selection of the best pay after delivery services in Canada:
- Spending limit: While most pay after delivery services offer customized spending limits depending on the individual’s situation, contacting the service provider may help you know the spending limit for your situation. This will help you know whether it’s ideal for your spending habit or not.
- Fees and interest: Most pay after delivery services don’t charge prepayment fees and interest. However, most charge late payment fees. Knowing the fees and interest rate of your potential pay after delivery service will help you determine the overall cost of using it.
- Number of partners: You want to choose a pay after delivery service that supports your favourite stores. Factoring your future needs, consider a service provider with multiple partners.
- Payment options: Choosing a pay after delivery service with multiple payment options will give you the flexibility of paying your loan without any inconveniences.
Verdict on Klarna Canada Review
Now you know what Klarna Canada entails and how to use it to make online and in-store purchases.
With no interest, late payment fees and multiple payment options, Klarna may likely be your best pay after delivery service in Canada.
All things being equal, use the above tips as a checklist when narrowing your selection.
Which pay after delivery service are you going with? Let me know in the comment below.
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- Tangerine Credit Card Promotions
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FAQs on Klarna Canada Reviews
Does Amazon Accept Klarna?
Sure, Amazon is one of the 400,000+ partners of Klarna. This allows you to make in-store or online purchases at Amazon through Klarna.
What credit score do you need for Klarna?
While Klarna doesn’t specify the credit score it requires from users, you may need a good credit score to be approved.
Does Klarna charge a fee?
No, Klarna doesn’t charge consumers any fee. It only charges its partner stores administrative fees.
Does Klarna report to credit bureaus?
It doesn’t. However, it conducts a soft credit check that doesn’t affect your credit when evaluating your application.
By not reporting to credit bureaus, it means that your Klarna loan repayment will not reflect on your credit score.
What is the downside of Klarna?
The major downside of Klarna is that it reports late payments directly to debt collection agencies upon failing to deduct the 4 installments several times. Also, your Klarna loan repayment will not improve your credit score.
How can I request the deletion of my personal data on Klarna?
You can request the deletion of your personal data on Klarna at any time by following the steps below:
- Login to your Klarna account
- Go to “Payment methods”
- Select the card your want to remove
- Remove the card.
If you have more questions about this Klarna Canada review, kindly drop them in the comment below.
Klarna Canada Review
Summary
Klarna is recommendable to Canadians looking for the best pay-after-delivery services in Canada.
