This interest-free payment plan is the exact same structure as the point-of-service-loans made via the Klarna app. And, unlike most credit cards, which allow you to carry a balance indefinitely but add finance charges in exchange for that privilege, purchases made on the Klarna Card have to be paid off in four bi-monthly installments. The card charges no interest, which in this case doesn’t simply mean an extended intro 0% APR period like you’ll see on some credit cards. The Klarna Card, which has an annual fee of $4.99 monthly fee, runs on the Visa network-but that’s about the only thing it has in common with a traditional credit card.
Klarna is aiming to turn every purchase you make into a BNPL transaction.
