This is effective on purchases made from 21 October.
The timing of this announcement comes as Australians open up their wallets following an end to lockdowns and the return of 'freedom'.
Klarna states that having a flat and consistent late fee means the maximum additional cost to shoppers per order is $9 - as the company is based on the business model of 'paying in four instalments'.
Total order value
Late fee per installment
Maximum late fee per order (across 3 late repayments)
Up to $49.99
$0
$0
$50+
$3
$9
Source: Klarna
What else is changing?
Klarna is also changing its 'snooze' function, which provides customers with an additional 14 days in order to make one of their four instalment repayments.
There are now no fees on snoozed repayments for purchases less than $50, while purchases over this amount have a snooze fee of $2.
Source: Klarna
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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 April 27, 2024. View disclaimer.
Brooke Cooper
Hanan Dervisevic
Harrison Astbury
