Klarna

Klarna: the personal finance app of Swedish origin

Klarna is a financial technology company founded in 2005 in Stockholm by three young Swedish entrepreneurs. The company presents itself as an alternative for managing money flexibly, transparently, and centralized in a single app. Its offering covers payments, cards, balance accounts, savings, and rewards, with a presence in international markets and a strong activity in the United States.

Financial products and services

Klarna's offering is built around several products that the company describes on its site:

• Flexible payments: allows you to pay now, later, or over time, with monthly financing options through WebBank. The company states that loans are issued by WebBank and that for California residents they are made or arranged pursuant to a California Finance Lenders Law license (NMLS #1353190).
• Klarna Cards: physical or virtual cards for use wherever Visa is accepted. The physical card is only included with a paid membership plan. Some merchants do not accept virtual cards.
• Klarna Balance: a balance account where you can deposit funds to pay flexibly. Deposits are held at WebBank, Member FDIC. Klarna is not an FDIC-insured bank and deposit insurance only covers the failure of WebBank; funds may be available before WebBank receives them and may not be FDIC-insured until that time.
• Savings: flexible savings account offered by the company.
• Cashback: rewards in the form of points redeemable for credit in the Klarna balance or other benefits. They are earned on purchases made through the Klarna app and require a Klarna balance account. Cashback issuance depends on store approval and may be affected by cookie settings, offer stacking, product exclusions, or other factors.
• Memberships: paid plans that offer extra cashback, travel benefits, and lifestyle perks. The company advertises 30% off Klarna Premium or Max for 3 months. Certain benefits such as membership cashback require a paid plan and are subject to limitations and conditions.
• Mobile plan: Klarna offers a mobile phone plan with priority data on AT&T's 5G network (QCI 8), which according to the company provides more consistent speeds and lower latency during times of congestion. The setup process can take a few minutes and requires a stable internet connection and an eSIM-compatible device.
• Shopping: a search tool to find better prices on favorite products.

How it works and security

The Klarna app lets you choose how to pay: now, later, or over time, with clear terms and reminders. Payments can be made at online and physical stores by looking for the pink badge at checkout or by using Apple Pay or Google Pay, or the Klarna Card wherever Visa is accepted. The company states that eligible transactions include buyer protection and advanced fraud prevention, with advanced encryption and 24/7 fraud monitoring. It also offers a 24/7 AI assistant for instant answers, with human support when needed.

Presence and recognition

Klarna states it has 120 million users worldwide and more than 1.2 million merchants. On Trustpilot, the company shows a rating of 4.5 out of 5 based on 602,134 reviews. The company cites user reviews that highlight the flexibility of payments, the ease of use of the app, and customer service. Klarna presents itself as a company with twenty years of experience and a presence in the U.S. market, where its specific U.S. website operates.

History and evolution

Founded in Stockholm in 2005, Klarna reached unicorn status and has been expanding its family of products. The company describes its evolution from a solution to pay smarter at checkout to becoming an everyday money app that helps manage spending, payments, and rewards. Among the milestones it mentions are the arrival of the Klarna app, the expansion of its payment options, and its public listing.