BNPL Klarna axes late fees on some purchases

By Jacob Cocciolone
on November 01, 2021 Fact Checked

Klarna has waived late fees on purchases less than $50, while capping late fees at $3 for purchases more than $50.

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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Jacob Cocciolone Jacob Cocciolone joined the Savings team in 2021 as a Finance Journalist. Driven by a passion for keeping Australians up to date with the latest financial news and trends, his areas of interest include financial technology, investing, property and motoring.