BNPL Klarna axes late fees on some purchases

author-avatar By
on November 01, 2021 Fact Checked
BNPL Klarna axes late fees on some purchases

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.

Snoozefee.jpg

Source: Klarna


Advertisement

In the market for a personal loan? The table below features unsecured personal loans with some of the lowest interest rates on the market.

Lender

FixedUnsecuredN/AMore details
APPLY ONLINE
  • No extra repayment or early exit fees
  • No ongoing fees
  • Up to $75,000 in loan amounts
  • Funding approved within 24 hours
APPLY ONLINE

Low Rate Personal Loan Unsecured (Excellent Credit)

  • No extra repayment or early exit fees
  • No ongoing fees
  • Up to $75,000 in loan amounts
  • Funding approved within 24 hours
FixedSecuredN/AMore details
NO ONGOING FEESNO APPLICATION FEES
NO ONGOING FEESNO APPLICATION FEES

Low Rate Personal Loan (Excellent Credit) (Secured)

    FixedUnsecuredN/AMore details
    CHECK YOUR RATE IN 2 MINUTES
    • No ongoing fees
    • No application fees
    • Apply online
    CHECK YOUR RATE IN 2 MINUTES

    Unsecured Loan (Excellent Credit)

    • No ongoing fees
    • No application fees
    • Apply online
    FixedUnsecuredN/AMore details

    Liberty Personal Loan (Very Good Credit History)

      *Comparison rates based on a loan of $30,000 for a five-year loan term. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate, Rates correct as of May 22, 2022. View disclaimer.



      Head Image Supplied

      Latest Articles

      author-avatar
      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.

      Be Savings smart.
      Subscribe for free money newsletters.

      By subscribing you agree
      to the Savings Privacy Policy