Klarna Canada Review 2022



Share on facebook
Share on twitter
Share on linkedin
Share on pinterest

Many online retailers are taking advantage of the increase in sales volume and turnover offered through budgeting and installment financing service companies. Services like those offered by Klarna Canada enable shoppers to split payments for their purchases at zero interest charges. 

Buy now, pay later firms like Klarna have revolutionized the e-commerce sector, such that merchants and consumers enjoy unhindered and convenient checkout process. With these services, shoppers can pay for items in installments or defer payments at online and in-store retail outlets.

Here’s how the Klarna Canada financing platform works. 

What is Klarna Canada? 

Klarna is a fast-growing fintech company and an alternate payment solution service provider that lets shoppers buy items to pay later. With different payment solution products and services, users can shop at participating merchants and pay for their order using any convenient payment schedules.

Klarna, in partnership with PayBright in 2019, started a joint financing solution for Canadian shoppers to make in-store and online purchases. However, the Klarna Group recently launched Klarna Canada in 2021 in Toronto, Ontario. 

Klarna Canada is an integral part of the Klarna Group, a payment provider and licensed bank in Europe. Klarna was founded in 2005 in Sweden to offer secure and convenient online checkout to its customers. 

As part of the Klarna Group, the company has over 90 million total customers and about 200 thousand merchants in 17 countries. 

How It Works 

By working with several online and physical store merchants, Klarna provides value to its customers to enjoy shopping and payment flexibility. The company offers the buy now, pay later (BNPL) payment options for customers in its services. 

Like other buy-now-pay-later services such as Afterpay, PayBright, and Sezzle, Klarna provides short-term loan services for shoppers to use at checkout. These loans can be used for in-store and online purchases using the Klarna mobile app. 

The Klarna Group offers multiple financing options to shoppers. The popular Pay in 4 installment lets you buy items at your favourite retail stores and split payments into four equal installments. With this plan, you can pay for your purchases over time (bi-weekly within six weeks).

Similarly, there’s a Pay in 30 interest-free option to use at checkout. The Pay in 30 plan lets you receive your order without any initial deposit. You’ll have 30 days to balance your payment with the company. Users of Klarna can also opt for its Financing loan terms of 6 to 36 months with monthly installments and interest charges. 

However, the only payment option offered by Klarna Canada and available to Canadian shoppers is the Pay in 4 interest-free installment option. 

Klarna Canada Payment Plan

Klarna has about four different payment options for shoppers:

  • Pay in 4 interest-free payments
  • Pay in 30 days 
  • Klarna Financing
  • Pay over 6 months

Although the company widely promotes the above payment methods, they’re not universally available. Klarna Canada currently offers the Pay in 4 payment plan. With this buy now, pay later program, customers can shop for items at online and in-store merchants and split the payments into four interest-free installments while the retailer gets paid in full. 

The customer pays 25% of the purchase value at checkout, while the company charges the remaining three installments from the credit or debit card used for payment. 

You can choose to pay your installments bi-weekly or pay off the balance earlier than the scheduled payment date. 

For instance, if you purchase items worth $150, you would be charged $37.50 at checkout, 25% of your total purchase value. Within six weeks, the three remaining installments of $37.50 each would be billed to your credit or debit card every two weeks. 

How to Use Klarna Canada for Purchases

Unlike other shopping financing alternatives, Klarna Canada does not require sign up to use its services. You can use the Pay in 4 payment plan through the following steps:

Step 1: Shop for the things you love at merchant stores and proceed to checkout. 

Step 2: If your order is eligible for the Pay in 4 plan, it will be made available to you. Select the option as your payment method. 

Step 3: Enter your debit or credit card information to complete the order. 

When the store ships your order, Klarna Canada will send an email detailing your payment and the due dates for the remaining three installments. 

Eligibility for Klarna Canada Payment Plan

To use the Klarna Canada payment plan in financing your next purchase, you need to:

  • Be at least 18 years old. 
  • Be a Canadian resident. 
  • Shop with a participating retailer. 
  • Have a valid email address. 

Klarna Canada and Your Credit Score 

Most times, point of sales loan service companies conduct a hard check on customers’ credit score to ascertain their creditworthiness and payment history. The credit check usually has a negative impact due to a default in payments. 

By offering a more convenient loan service with its Pay in 4 payment plan, Klarna Canada does not perform a credit check on shoppers’ credit score. As a result, you can rest assured that your credit score will not be positively or negatively affected. 

How Safe is Klarna Canada? 

Klarna Canada protects its users’ information by ensuring data encryption between clients and the server. It also has fraud liability protection, which relates to charges or purchases made to your card or name using Klarna and without your authorization. If this occurs, you must file a claim with the customer service within 60 days of the first charge date. 

Cost and Fees

Klarna Canada’s buy now, pay later (BNPL) services comes at zero percent interest and no hidden fees. Usually, when customers miss a payment due date, loan finance companies impose a late payment fee.

However, Klarna Canada claims that it won’t charge any late fees on its Pay in 4 interest-free payment plan. If you miss the bi-weekly payment date schedule, possibly due to card decline or insufficient balance in your debit or credit card, the company will try again to process the payment. If the payment remains unsuccessful, Klarna Canada will add the missed payment to your next bi-weekly scheduled payment and notify you by email. 

You can choose to pay your installments earlier than the scheduled date or pay the full amount as a whole, without any fee or interest charges. 

Klarna Canada Mobile App 

Klarna Canada has an intuitive mobile app with a user-friendly interface. The app is designed to enhance the customers’ shopping experience and ensure smooth payments. 

You can also create wish lists and get price drop notifications on the saved items. The mobile app has an all-inclusive functionality to shop for the things you love. 

Klarna Canada mobile app is available for download on the App Store and Google Play Store for iOS and Android devices.


  • Equipped with multiple language options. 
  • It makes shopping easier and straightforward. 
  • It is suitable for managing payments and viewing your purchases. 
  • You can track the delivery and manage returns or cancellations.
  • You can use the app for easy contact with customer support. 
  • Get notifications for payment due dates. 

Customer Service 

Klarna Canada customer service provides comprehensive support in different categories, including:

  • Payment management
  • Refunds management 
  • Delivery, cancellation, and returns
  • Account management and access
  • Products and services 
  • Payment options and shipping 
  • Purchase decline and spending limits 
  • Fraud protection 

Each section is equipped with pre-answered topics. For feedback and questions, you can contact the customer service through the following:

Phone: 1-833-916-3555

Live Chat: 9am – 5pm ET


Klarna Canada Limited 

100, University Ave., 

Room 06 – 166


ON M5J 1V6



  • No interest charge on payment. 
  • Split your purchases into four equal installments. 
  • No prepayment and late payment fees. 
  • Access to the mobile app to manage shipping, delivery, and payments.


  • Timely payment has no positive effect on your credit report. 
  • It offers a low credit limit – the minimum is $35.
  • Customers can only do shopping on the app. 
  • No comprehensive list of participating Canadian stores on the platform. 

Editor’s Review 

Klarna Canada’s Pay in 4 interest-free payment plan could be the ideal plan for your next purchase, especially if you need to buy an essential item before saving enough money.

However, it would be best if you sincerely consider your financial status and financial discipline to ascertain if it is ideal for you or not. Non-payment of debts may not have an immediate impact on your credit score, but it might portray you as a credit risk to lenders as time goes by. 

Perhaps you’re not sure if Klarna Canada’s service is right for you, there are alternative financing service companies to consider, including PayBright, Afterpay, Sezzle Canada, Affirm, etc. 


How do I update my address?

To update the address on your Klarna Canada account, contact the company’s Customer Service.

Which payment methods are accepted by Klarna?

Except for prepaid cards, Klarna currently accepts all major Visa and MasterCard debit and credit cards.

You Might Like

Post Comments

Leave a Comment

Your email address will not be published. Required fields are marked *

Essential reads, delivered weekly

Join the Financial Literacy Train. Get the latest financial information delivered right to your inbox.


Deals and Offers

We’ve rounded up the Best life in Canada, with the best promotions, and the best sign-up bonuses, to help you maximize your benefits.

Helcim payments

Easy Payment Processing

Simplify payments with Helcim


Create Your Online Store

Selling online should be easy


Invesment Made Simple

Build your investment portfolio and save on fees.


Post Comments

Leave a Comment

Your email address will not be published. Required fields are marked *

Advertiser Disclosure

Canada Buzz is an advertising-supported blog. Some products and services that appear on this site are from companies from which Canadabuzz receives compensation. We may alter brand placements on our website to amplify our partners and their offers. Any time you click to our partner websites or register for a product or services through an affiliate link on our website, we may earn a commission at ZERO cost to you.

Canada Buzz is a purely informational blog. Opinions expressed on this blog are NOT endorsed by the reviewed brands. The information provided on this website does not constitute financial or professional advice. However, our team strives to bring you quality, unbiased information.

Odeyemi O.


Avid researcher, freelance writer, and personal finance enthusiast passionate about financial education and literacy.

Latest Post

Kareena Maya

Personal Finance and Travel Rewards Expert Contributor



Kareena Maya is a freelance writer focused on the personal finance and travel spaces. He frequently writes about credit cards, banking, student loans, insurance, travel rewards and more. His work has been featured in publications such as Forbes Advisor, Bankrate, Credit Karma, Finance Buzz, The Ascent and Student Loan Planner.

Kareena Maya is a freelance writer focused on the personal finance and travel spaces. He frequently writes about credit cards, banking, student loans, insurance, travel rewards and more. His work has been featured in publications such as Forbes Advisor, Bankrate, Credit Karma, Finance Buzz, The Ascent and Student Loan Planner.