Klarna has become one of the most popular payment methods for online shopping But can you also use Klarna’s flexible financing options to pay regular household bills and expenses?
In this comprehensive guide, we’ll explain everything you need to know about paying bills with Klarna, including how it works, which bills are supported, the pros and cons fees and interest charges, and more.
Overview of Klarna Bill Pay
First launched in Sweden in 2005 Klarna now serves over 147 million global users allowing customers to pay for purchases over time with no interest or fees.
In 2019, they added bill pay to their app and website, with a main focus on monthly subscription services. Now with just a few taps, Klarna users can pay their cell phone, internet, streaming, magazine, and other recurring bills.
Klarna integrates directly with companies to enable bill payment. Currently, over 2,500 billers accept Klarna payments including major providers like:
- AT&T
- Verizon
- T-Mobile
- Sprint
- Spectrum
- Xfinity
- YouTube TV
- Sling
- Hulu
- Pandora
And many more. The biller network is continuously expanding.
Top Reasons to Pay Bills With Klarna
Why should you consider using Klarna for your monthly bills? Here are some of the key benefits:
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Simplicity: Manage all bills in one place with Klarna’s user-friendly app or website.
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Flexibility: Choose pay now, pay in 4 installments, or pay in 30 days. No interest.
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Rewards: Earn points on every bill payment to redeem for shopping discounts.
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Account Management: Klarna securely stores your biller account numbers. No need to re-enter each time.
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Notifications: Get reminders when a bill is due to avoid late fees.
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Support: Klarna’s customer service can quickly assist with any issues.
Step-By-Step Guide to Paying Bills With Klarna
Follow these simple steps to start paying bills with Klarna:
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Download the Klarna app or access their website.
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Create an account and log in.
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Click on the Bill Pay tab.
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Search for your biller by name or scan a paper bill.
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Enter your account number with that biller.
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Select pay now, in 4 installments, or in 30 days.
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Review payment details and submit.
Once setup, you can make a payment anytime, even on the due date. Easily manage recurring bills for your entire household in one place.
Bill Types Supported By Klarna
As mentioned above, Klarna currently supports recurring subscription-style bills including:
- Wireless and internet
- TV streaming subscriptions
- Magazine and newspaper subscriptions
- Gym memberships
- Mortgage and rent payments
- Insurance bills
- Utility bills
- Public transportation passes
You can also use Klarna’s Pay in 4 installment plan to pay medical bills, traffic tickets, tuition fees, and other one-time expenses.
Klarna is continuously expanding their biller network. Check the app frequently for new additions.
Paying Rent and Mortgage With Klarna
One of the most useful bill pay applications is Klarna’s ability to pay rent or mortgage in 4 interest-free installments.
To pay rent with Klarna, first check if your property manager or landlord accepts Klarna payments through their online portal. If so, you can easily setup scheduled recurring payments.
For mortgages, Klarna partners with several major lending institutions. Check with your lender to see if they integrate with Klarna yet for installment payments. This service is still relatively new but rapidly growing.
Using Klarna Bill Pay on Desktop
While the Klarna app provides the smoothest experience, you can also pay bills on your desktop.
Simply log into your Klarna account online and you’ll see your stored billers with options to make one-time or recurring payments.
The desktop site offers the same flexible financing plans and is great for managing bills on a larger screen. However, you’ll miss out on app-only features like reminders.
Pros and Cons of Paying Bills With Klarna
Let’s summarize the key advantages and potential drawbacks of using Klarna for bill payments:
Pros
- Pay bills on your schedule
- Avoid late fees
- Get payment reminders
- Earn shopping rewards points
- Helpful customer support
Cons
- Can promote overspending
- Possible missed notifications
- Limited biller selection
- App-focused experience
While Klarna adds flexibility and convenience, it may enable some users to overspend through installments. Using it responsibly is important.
Supported Bill Types and Payment Limits
Klarna currently supports the following bill types:
- Wireless and internet bills
- TV streaming subscriptions
- Magazine and newspaper subscriptions
- Gym memberships
- Mortgage and rent payments
- Insurance bills
- Utility bills
- Public transportation passes
- Medical bills
- Traffic tickets
- Tuition fees
Payment limits depend on the type of bill. For example, Klarna sets a $15,000 limit per year for utility bills but allows over $100,000 annually for medical bill payments. Check with Klarna for specific payment maximums.
Klarna Fees and Interest Charges
Klarna charges no interest when you choose Pay in 4 or Pay in 30 Days. Both buy now, pay later loans are interest-free as long as you pay in full on time.
You may pay interest on financing options like month-to-month payment plans. The APR for purchases ranges from 0-24.99%. You may avoid interest with a No Interest If Paid In Full offer.
Klarna charges a $7 fee the second time they attempt to collect payment. Fees increase for further missed payments.
Final Take – A Convenient Bill Management Solution
For those seeking to simplify bill pay and avoid late fees, Klarna provides a user-friendly solution. Their growing biller acceptance, flexible payment schedules, and automation features improve upon traditional methods.
While they don’t support every company yet, Klarna already integrates with most major monthly bills. It’s an excellent option if you want more control and convenience meeting payment deadlines on time. Just remember to use their installment plans responsibly and within your budget.
Where is Klarna used?
Klarnas global reach extends across 45 markets, each with its own unique customer preferences and regulatory landscape. Klarnas primary markets include:
Klarna serves a diverse population of customers and integrates with a wide range of business types across 45 global markets. Klarna users vary in age, gender, education, life stage and community, demonstrating the services broad appeal across different customer segments. Klarna customers leverage the service for in-store purchases, online shopping, in-app purchases and even bill payments. The latest demographic data for Klarnas customer base is outlined below:
- Gender: According to Klarna, 60% of its customers are women and 40% are men.
- Education: Klarna reports that 31% of its customers have a university education, highlighting that people of all educational backgrounds use the service.
- Life stage: Klarna data shows that 36% of Klarna customers are partnered with children, 27% are single without children, 18% are partnered without children and 11% are single with children.
- Community: Klarnas data shows that 40% of its customers live in cities, 32% live in suburbs and 28% live in rural areas.
The industries where Klarna has found the biggest success include:
- Retail: Many major retailers include Klarna as a payment option, with adoption rates soaring in the clothing, electronics and furniture sectors.
- Travel and hospitality: Airlines and travel booking platforms such as Expedia often integrate Klarna, allowing travellers to book flights and hotels with flexible payment options.
- Health and wellness: Dental clinics, pharmacies and businesses in the wellness space have adopted Klarna, increasing access for populations that might not be able to pay in full up front.
- Automotive: Car care businesses also accept Klarna as a convenient way to purchase tyres and other essentials.
How does Klarna work?
To pay using Klarna, customers simply select it as their preferred payment method at checkout, which may be on an e-commerce website, on a mobile app or in a physical shop. Customers can manage their Klarna accounts through the Klarna app, where they can track their orders, view payment schedules, make payments and access customer support. When paying with Klarna, customers can choose from the following payment plans:
- Pay in 4: This option spreads out the cost of a purchase over four interest-free instalments. The first payment is due at checkout, and the remaining three are spread out over the following six weeks.
- Pay in 30: This option gives customers 30 days to pay for their purchase in full, incurring no interest or fees if paid on time.
- Long-term loans: Larger purchases can be financed with longer-term loans. Interest rates for this option start at 7.99%.
Not all products are eligible for financing through Klarna. For example, Klarna does not offer financing for services such as haircuts, car repairs and legal fees – or intangible goods such as music, e-books and films. It also wont finance purchases such as tickets and event passes or financial products such as investments or insurance. In addition, no restricted goods – such as alcohol, tobacco, firearms and adult content – can be financed through Klarna.
The following product types are typically eligible for Klarna financing, with some restrictions:
- Physical goods: Klarna typically allows financing for most tangible products, including clothing, electronics, furniture, appliances and household goods.
- Digital goods: Certain digital products – such as software licences, online courses and memberships – may be eligible for Klarna financing.
- Travel: Klarna offers financing options for booking flights, hotels and holiday packages through specific travel partners.
- Gift cards: Some gift cards may be eligible for Klarna financing, but restrictions may apply depending on the issuer and the type of gift card.
- Pre-orders: Klarna may allow financing for pre-orders of certain products, but the payment schedule may differ from standard financing options.
- Custom-made or personalised items: Eligibility for customised or personalised items depends on the product and the specific business.
And heres how Klarna works on the business side:
- Integration: Businesses can integrate Klarna into their existing point-of-sale (POS) systems and online platforms through various application programming interfaces (APIs) and plugins.
- Processing transactions: When a customer chooses Klarna at checkout, Klarna instantly verifies their identity and creditworthiness. Upon approval, Klarna advances the purchase amount to the business, assuming the risk of non-payment. By using a distributed architecture to ensure scalability and reliability, Klarna can handle high transaction volumes and maintain uptime even during peak periods.
- Settling funds: Klarna settles the transaction amount with the business within two to three working days, typically via bank transfer or ACH payment.
How to Use Klarna to Pay Bills (Best Method)
FAQ
Can you make bill payments with Klarna?
Can you use Afterpay or Klarna to pay bills?
Afterpay: Mobile App. Both Klarna and Afterpay offer mobile apps to shop, view your account, and pay your bills. Each offers different features to encourage shopping and enhance the user experience.
Can Klarna be used for utility bills?
Klarna isn’t typically an option for utility bills like electricity, water, or gas. These types of bills usually require direct payments from a bank or credit card. However, some financial apps or bill pay services may offer Klarna as a payment option for utility payments.
Can I use Klarna to pay my credit card bill?