Klarna - Buy now pay later

We have had a number of queries regarding Klarna after it was featured on TV recently. 

They are new to Australia, but large in Europe. In Europe they operate under a traditional model, and charge merchants a fee for the right to have people use their credit facility similar to Afterpay.

In Australia they have introduced a different model which is essentially a virtual credit card which allows consumers to purchase from any website which accepts Visa, and the consumer then pays Klarna in 4 equal installments.

Transactions are completed via the Klarna App. They are not charging any fees for the consumer at this point in time, although their policies do allow for them to charge late payment fees.  Each transaction is treated separately and is a single use transaction. They do, what they refer to, a soft credit check before allowing a transaction to be completed.

It is essentially the same as a credit card transaction, albeit a virtual one, our system accepts the payments normally.

There is no agreement between Klarna and Modere, and you are welcome to use Klarna to pay for Modere products just like you would with any other Visa card.

If you would like more information go to:  https://www.klarna.com/au/legal/