The introduction of an interest-free virtual one-time card system means customers can now use Klarna's payment methods at all online shops regardless of whether they are directly partnered with Klarna.

This comes just days after it axed late fees on some purchases, and the platform was also criticised by some in the industry as being too narrow in scope - only available across a select few retailers.

The push by Klarna for an all-in-one destination for customers comes after Klarna reported majority of consumers across the globe are shopping more on their mobiles today than two years ago.

Conducting a study of more than 13,000 participants across 13 countries Klarna, in collaboration with research agency Dynata, found the trend towards mobile shopping is significant across younger demographics.

Research found:

  • 76% of 18-24 year olds and 71% of 24-40 year olds are using their phones more frequently to shop than two years ago.

  • 73% of 18-24 year olds and 68% of 24-40 year olds believe they will shop even more on their mobile phones in the next five years. 

Further, Klarna reported 70% of mobile customers would prefer to have one single app incorporating all the features of the shopping apps they currently use.

Sebastian Siemiatkowski, CEO of Klarna, said with the introduction of the new app, Klarna becomes an end to end shopping service that caters to many needs from inspiration and discovery to seamless post-purchase experiences.

"We’ve made transparent and flexible payments a possibility everywhere because we believe no one should ever have to pay credit card fees or high-interest rates," Mr Siemiatkowski said. 

Klarna’s new app serves as an update to the existing app launched in March 2020 with more than a million downloads.

Additional features in the pipeline include loyalty cards, money saving tools, product insights and more.

How to use a one-time Klarna card

Klarna has detailed the steps to use its interest-free virtual one time cards as follows:

  1. Shop at any online store, including those not Klarna merchants in the Klarna app.

  2. Find the products and add them to your basket.

  3. Press the pink ‘pay with K’ button.

  4. Create a one-time card for the value of your purchase.

  5. Choose to pay later and review your plan.

  6. Copy and paste your one-time card details into the checkout.

  7. The process is complete

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LenderCar LoanInterest Rate Comparison Rate* Monthly Repayment Interest Type Secured Type Early Exit Fee Ongoing Fee Upfront Fee Total Repayment Early Repayment Instant Approval Online Application TagsFeaturesLinkComparePromoted ProductDisclosure
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7.19% p.a.
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16.95% p.a.
32.99% p.a.
$497
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$15
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Important Information and Comparison Rate Warning

All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here.

The comparison rates in this table are based on a loan of $30,000 and a term of 5 years unless indicated otherwise. The comparison rates are for unsecured personal loans only for the relevant amounts and terms. The comparison rates for car loans and secured personal loans are for secured loans unless indicated otherwise. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. Comparison rates are not calculated for revolving credit products.

Monthly repayment figures are estimates only, exclude fees and are based on the advertised rate for the term and for the loan amount entered. Actual repayments will depend on your individual circumstances and interest rate changes. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

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