【2022.7.1 Update】The signup bonus has now dropped to $25. You need to make a minimum purchase of $20 to receive the $20 first-purchase bonus + $5 from the Rewards program. The promotion runs through July 21. Based on the current trend, the bonus may continue to decrease toward the original $10 level, so if you haven’t signed up yet, now is a good time to do it.

【2022.6.11 Update】The promotion has been extended through June 30. The current spending requirement is a minimum purchase of $30 to receive the signup bonus.

Klarna Overview

Klarna is an online payment services company based in Sweden. Founded in 2005, it is one of the largest providers of “buy now, pay later” (BNPL) services, which let shoppers finance purchases interest-free through monthly installment payments. These services have become especially popular since the COVID-19 pandemic. Klarna currently has nearly 7,000 employees across 17 countries/regions and more than 90 million users worldwide. The company has attracted investment from many major backers, including BlackRock, SoftBank, Ant Group, Sequoia Capital, and Visa’s venture capital arm. Across more than a dozen funding rounds, Klarna has raised over $2 billion. Klarna and Afterpay are among the global leaders in BNPL market share, with another major player being Affirm.

Klarna Services

Klarna works somewhat similarly to Alipay in that it provides payment processing services for e-commerce businesses and handles merchant claims and customer payments. Klarna is one of the world’s largest BNPL providers and offers a service somewhat similar to Huabei. Klarna now operates in 17 countries worldwide, including Austria, the UK, Finland, Germany, the Netherlands, Norway, Sweden, and Denmark. Klarna currently offers four payment options: Pay now, Pay in 4, Pay in 30 days, and Pay over time. Consumers can pay Klarna in the app within 30 days after a merchant ships the order, or choose installment payments instead of paying immediately. Shoppers can choose fixed installments or flexible financing, and in some countries installment terms can be as long as 24 months. Klarna currently supports payments in scenarios such as In-App payments and online stores, and it is suitable for e-commerce, gaming, virtual goods, and software payments.

Klarna Signup and Usage

Consumers can use Klarna without registering or entering card information up front. At checkout, you only need to enter basic information such as your email, ZIP code, and billing address to complete a purchase. During the Klarna signup process, no identity verification is required, and you do not need to provide an SSN. The first time you use an installment-payment service, Klarna will perform a Soft credit check to verify your identity. This does not affect your credit score, and there is no hard pull, so you can feel comfortable signing up and using it. The current promotion says that if you sign up for Klarna through a referral link by June 8, you can get a $30 Amazon gift card. The signup link is below:

  • Klarna referral signup link After signing up, join their Rewards program Vibe for free to get another $5. After registration, you can go to Amazon and Reload $10 to your own gift card balance. After your first repayment, the $35 reward will be issued in the form of an Amazon gift card.

How to Use Klarna

  1. Sign up for Klarna through the Klarna referral signup link or scan the QR code above.
  2. On the Klarna App home page, tap Rewards Club, then tap “Join” to enroll in the Rewards program. This step earns an extra $5 bonus.
  3. Go back to the Klarna App home page and tap the merchant where you want to shop. Using Amazon as an example, tap the Amazon icon to enter, then go to your account and choose to reload your gift card balance. The amount needs to be at least $10
  4. At checkout, tap the “Pay | K” button at the bottom of the page to generate a one-time card number, then use it to check out. Generally speaking, the card’s initial limit is not very high; the author’s was $100. At checkout, you can also see the available limit for that card (Purchase power). Here you can choose Pay in 4.
  5. Return to the Klarna App home page and tap “Money” -> “Payment” at the bottom. You need to make at least one payment to receive the $30 Amazon gift card. In general, making payments on time may help increase your limit; after the author completed payment, the limit increased to $1,000. It is recommended to pay it off in full at once to avoid interest from missing a payment. After repayment, you can claim the $30 + $5 Amazon gift card reward under “Rewards Club”-->“My rewards” in your account.

Overall, Klarna is very easy to sign up for and use. At the moment, signing up and completing one installment purchase can earn you a $35 Amazon gift card. Unlike other installment services such as PayPal, Klarna does not affect your credit history and does not involve a Hard Pull. It is simple and convenient to use. The main downside is that the initial credit limit is low, so it is not ideal for large purchases. If you haven’t signed up before, it may be worth trying.