Klarna has become one of the most popular online payment services in recent years. This Sweden-based company allows customers to pay for purchases over time with no interest or fees. But can you also use Klarna to pay regular household bills like utilities rent and subscriptions?
In this comprehensive guide, we’ll explain everything you need to know about paying bills with Klarna.
An Overview of Klarna
First launched in 2005, Klarna now serves over 90 million users globally. Their app and services aim to provide a flexible, hassle-free payment experience for online shoppers.
Instead of paying upfront, customers can pay for purchases in 4 interest-free installments, pay after 30 days, or finance larger amounts over 6-36 months. Klarna integrates directly with online retailers and handles payment collection.
In 2019, they expanded into bill pay services through their app. The focus is on recurring subscription-style bills like cell phone, TV, magazine, and utility bills. Klarna partners directly with companies like AT&T, Verizon, Comcast, and over 2,500 others to enable bill payment.
Top Reasons To Pay Bills With Klarna
Why should you consider using Klarna for paying bills? Here are some of the key benefits:
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Simplicity: Manage all bills in one easy-to-use app instead of multiple websites and logins.
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Flexibility: Choose to pay now, in 4 installments, or after 30 days. Great for large bills.
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Rewards: Earn points on every bill payment that can be redeemed for shopping discounts.
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Notifications: Get reminders when a bill is due so you never miss a payment.
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Support: Klarna’s customer service can quickly resolve any issues.
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Account Storage: Klarna securely stores your account numbers with billers to streamline payments.
Step-By-Step Guide To Pay Bills With Klarna
Follow these simple steps to start using Klarna to pay bills:
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Download the Klarna app on your smartphone.
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Create an account and log in with your email address.
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Select 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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Choose whether to pay now, in 4 installments, or after 30 days.
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Review payment details and submit.
Once setup, you can pay bills anytime even on the due date. Easily manage recurring payments for the entire household in one centralized app.
Types of Bills Supported By Klarna
As of 2022, here are some of the bill types that can be paid with Klarna:
- Cell phone and internet
- Cable TV and streaming services
- Magazine and newspaper subscriptions
- Gym and club memberships
- Mortgage and rent
- Insurance bills
- Electric, water, gas utilities
- Public transportation passes
- And many more
Klarna is actively growing their biller network. Check the app frequently for new additions.
Paying Rent and Mortgage With Klarna
One of the most useful bill pay features is the ability to pay rent and mortgage through Klarna installments. This allows you to spread out these large payments over 4 interest-free payments.
To pay rent with Klarna, first confirm your property management company or landlord accepts Klarna payments through their online portal. If so, easily setup scheduled recurring payments.
For mortgages, ask your lender if they integrate with Klarna. This allows you to pay your mortgage every month or make one-time payments as needed.
Pros and Cons of Klarna Bill Pay
Let’s summarize the key advantages and potential disadvantages of paying bills through Klarna:
Pros
- Pay on your schedule
- Avoid late fees
- Consolidated bill management
- Interest-free installment plans
- Earn shopping rewards
Cons
- Can promote overspending
- Limited biller selection
- App experience lacks desktop access
- Possible missed notifications
Is Klarna Bill Pay Right For You?
For those seeking an easy way to pay bills on time and avoid late fees, Klarna provides a convenient solution. Their app allows you to schedule and manage monthly bills with flexible payment options.
However, Klarna is still expanding biller acceptance. Not every company is integrated yet. But they already support most major subscription-style bills.
Overall, Klarna bill pay is a modern approach to simplifying bill management. While not perfect, the app streamlines the entire payment process. If you want more flexibility and control over household expenses, it’s an excellent option worth exploring.
Frequently Asked Questions
Here are answers to some common questions about paying bills with Klarna:
Can I pay rent with Klarna?
Yes, if your landlord or property manager accepts Klarna payments. Confirm with them first.
What about car insurance bills?
Many top insurance companies like Progressive, Geico, and State Farm now accept Klarna. Just link your policy.
Is there a fee to use Klarna to pay bills?
No. Klarna does not charge users any fees for standard bill payments. You pay the bill amount only.
What if my bill payment fails?
Klarna will notify you if a scheduled payment fails. You can then update your payment method or schedule another payment.
Can I pay federal taxes with Klarna?
Unfortunately no. Klarna currently does not support paying federal, state, or local taxes.
The Bottom Line
Klarna makes recurring bill payment simpler through flexible financing, easy tracking, reminders, and rewards. While they are still adding new billers, Klarna already supports most major subscription bills. For those seeking easier bill management, Klarna is worth exploring.
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.