![]() ![]() BNPL users also aren’t protected under the Credit Consumer Act (CCA). Regulation: Today Klarna is unregulated in the UK and isn’t subject to the supervision of the Financial Conduct Authority (FCA). Users typically have 30 days to pay for their purchase, or can opt for instalment payments to spread payments across 6 to 8 weeks (depending on the chosen option). This means that payments can be distributed anywhere from a month to a year after the purchase has been placed.įor Klarna, on the other hand, the payment timeline is much more rigid. Repayment Terms: For BNPL catalogues, payment timelines often depend on the amount spent. However a close inspection will reveal key differences between the two. On the surface, both BNPL catalogues and Klarna seem incredibly similar. Traditional Credit Cards: What’s the Difference? Differences Between Klarna and Buy Now Pay Later Catalogues The way Klarna works is generally similar to BNPL catalogues however the one major difference is that Klarna can be used with countless online merchants. Klarna is a major player in the global BNPL space with over 450,000 active monthly users recorded in June 2020 alone. Klarna is a digital BNPL service or in other words a payment solution provider offered by hundreds of thousands of retailers across the globe. Buy Now Pay Later catalogues are also commonly referred to as ‘shopping accounts’ or ‘mail order accounts’, although the services provided are generally the same. Instead of paying immediately, payments can be distributed over time. Let’s get to it! What is a Buy Now Pay Later Catalogue?Ī Buy Now Pay Later catalogue is a physical catalogue or website that offers to purchase a range of selected products through various payment plans. So what’s the difference between a service like Klarna and a Buy Now Pay Later catalogue, and what should you know before using either of them? In this post, we’ll examine the key differences and the impact of each service on your credit score. In fact, a quick look into the differences between the two can muddle the not so clear distinction even more. If you’re confused about the differences between traditional Buy Now Pay Later catalogues and services like Klarna, don’t worry - you’re not alone. Today, Buy Now Pay Later catalogues have moved online with the likes of Klarna and ClearPay offering digital BNPL services to thousands of customers on a daily basis via exclusive partnership with retail partners. Once upon a time, retail purchases could be made by post through catalogues with payments spread over a period of time. But did you know that BNPL already has a long history? It’s constantly in the news, and odds are someone you know has made a purchase using a Buy Now Pay Later (BNPL) service. Buy Now Pay Later services are growing - but you probably already knew that. ![]()
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