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The truth about Klarna in the U.S.
Traditional credit providers are failing consumers. For too long, credit card companies and traditional banks have been exploiting consumers with sky-high interest rates and rip-off fees. The system is broken and on the verge of collapse. Klarna is different. We are a global digital bank offering a healthier alternative to credit, committed to providing a seamless and transparent experience for consumers when managing their money.
By publishing our facts and figures with full transparency, including age demographics, repayment rates, and late fee rates among others, we’ll demonstrate that interest-free BNPL leads to better consumer outcomes than traditional credit.
An alternative to spiraling credit card debt
Klarna is well known as a leader in “Buy Now, Pay Later,” but as the industry faces heavy criticism around offering predatory credit products to consumers, it is more important than ever for us to show how we are inherently different in our credit offerings from both the traditional financial services and BNPL industry at large.
0%
Percentage of American credit card users who are revolving month-to-month (according to LendingTree¹).
In stark contrast, the average balance of a Klarna customer in the U.S. is $87.
0%
The average APR that Americans are paying on their credit card (according to Forbes²). Klarna does not charge interest on any of our short-term BNPL products (Pay Later and Pay in 4) and we cap the maximum you will ever pay in late fees.
0%
The percentage of credit card holders carrying revolving debt at interest of up to 36% (according to Fed Reserve³).
$1.233T
Total U.S. credit card debt in the U.S. (according to Fed Reserve⁴). Compare that with Klarna’s 0% BNPL interest rate.
The beginning of fair and sustainable payment methods
Klarna was founded in 2005 and launched in the US in 2019. We exist to make payments more secure, transparent, and frictionless. Unlike credit cards and other BNPL providers which make the majority of their money from consumer interest, our business model is built on charging retailers.
99%
Klarna balance repaid in the U.S.
Less than 1%
U.S. default rate
0%
Pay us back early in the U.S.
Payments that suit your budget
Choose from a range of fair, transparent, and convenient payment plans.
Pay in full today
Pay for the purchase immediately.
This makes up 25% of global transactions.
Pay in 4
Split your purchase into 4 interest-free payments, paid automatically every 2 weeks.⁵
Pay over time
Spread the cost over smaller monthly payments (6–24 months).⁶
This makes up 10% of our global transactions.
⁵ Consulta los términos de pago. Es posible que se requiera un pago inicial más alto para algunos consumidores. Préstamos para residentes de CA otorgados o gestionados conforme a una licencia de la Ley de Financiamiento de California. NMLS # 1353190.
⁶ Una compra de $1,000 podría costar $173.53 al mes durante 6 meses con una TPA del 13.99 %. La tasa varía de 0.00 % a 35.99 % de TPA según la solvencia crediticia, la duración del plazo y está sujeta a aprobación crediticia, resultando, por ejemplo, en 3 pagos mensuales iguales de $333.33 con una TPA del 0.00 % hasta $353.52 con una TPA del 35.99 % por cada $1,000 prestados. Se puede requerir un monto mínimo de compra y un pago inicial. La estimación del pago mensual excluye posibles costos de impuestos y envío. Financiamiento mensual a través de Klarna emitida por WebBank.
Over 99% of our lending is repaid
Any late payment is a failure on us
It’s not in our interest to lend to people who can’t pay us back. In fact, this impacts our business negatively. If a customer misses an installment, Klarna notifies them through various personal channels and sends clear follow up reminders to encourage timely payments. We may charge a late fee of up to $7 if any scheduled payment remains unpaid after 10 days, but the total of late fees charged on an order will never exceed 25% of the total purchase amount.
If all four installments have not been paid, we will send a final warning offering the customer an additional grace period of 21 days to settle their outstanding balance. The debt is then passed on to debt collection agencies.
Less than 2%
of active users in the U.S. have received a late fee
Less than 1%
of active users in the U.S. have been referred to debt collection
Klarna's Payment Statistics
Rising interest rates and compounding fees are making it harder than ever for consumers to pay off credit card debt. In contrast, BNPL offers a more transparent and manageable alternative—allowing shoppers to split purchases into interest-free installments that fit their budget and help them avoid revolving debt. That’s why Klarna’s average customer in the U.S. has an outstanding balance of $87, compared to $6,730 as the average balance of credit cards in the U.S.
It would take an average American approximately 30 years to pay off their credit card debt if we took the average outstanding US credit card balance ($6,730), average APR rate on interest-bearing accounts (21.91%), and average monthly credit card payment of $181.
Our late fees are significantly less when compared with others
Everyone is using Klarna
People across the world are using Klarna for their everyday spending — both online and in-store, across all types of verticals and industries. There’s no typical Klarna consumer. The average age of a Klarna user in the US is 36, and our fastest growing segment is Boomers (50+).
¿Cómo usa la gente nuestros productos?
Los clientes usan BNPL para hacer sus compras diarias más manejables al dividir los costos a lo largo del tiempo, sin intereses. Desde electrónicos y bienestar hasta viajes y artículos para el hogar, se está convirtiendo en el método de pago preferido en una amplia gama de categorías—con algunos sectores que experimentan un crecimiento especialmente rápido.
How much do people spend?
Average order value is $140.
What do they spend it on?
Top merchants include Walmart, Nike and eBay.
What verticals are growing fastest?
Sports Gear & Outdoor
Automotive Parts & Accessories
Pharmaceutical Products
Quién usa nuestros productos
Más de 114 millones de usuarios en todo el mundo usan Klarna para tener mayor control, claridad, y flexibilidad en el manejo de tu dinero—no solo al comprar.
Average age
The average age of a Klarna user in the U.S. is 36.
Fastest growing segment
The fastest growing segment is Boomers (50+).
Average order value by demographic
18-25: $140
26-35: $146
36-45: $147
46-55: $144
56-65: $131
66-75: $122
76-85: $105
85+: $146
Reseñas reales de personas reales
Únete a 120M personas que aman comprar y pagar con Klarna, calificada con 4.9 en la App Store y 4.8 en Google Play.
Disponible en App Store
Disponible en Google Play
Sources
Here are the sources for the externally provided information in each of the sections above
46%
46% of American credit card users are revolving month-to-month (Klarna x Harris Poll survey)
Rest of the sources are quoted in the text
All information comes from Klarna
All information comes from Klarna
All information comes from Klarna and from Urban Institute
The parking fees comes from Investopedia
Internet bill late fees come from ZDNet
The calculation of time taken to pay off Credit Card debt is based on:
Average APR coming from Lending Tree
Average monthly paid off credit card debt from Lending Tree
Average outstanding Credit Card balance from The ascent
Share of Americans revolving comes from JD Power
The current highest credit card interest rate in the US is up to 36% according to WalletHub
Credit card debt reached 1.18 Trillion USD in 2023 according to the Federal Reserve Bank of New York
Average outstanding of 6000 USD comes from Experian
43% of credit card holders do not know the interest rate on their credit cards according to Nerdwallet
All information comes from Klarna
All sources are linked to directly from the text