Buy now pay later - Klarna etc?

[somewhereovertherain]

A quick question we run a very small retail website and B&M shop.

So far we've avoided adding the likes of Klarna as a payment option as not sure i agree with it.

Looking for opinions, due to the cost of living etc looking at adding it as an option.

AIBU to consider doing this.

or are they seen as okay and normal?

Don't want to be encouraging people to get into debt, but we also don't want to be losing out on sales if it is a prefered payment option.

Happy to be flammed for even considering it.

I don't use it myself personally, I'm of the opinion that if you don't have the money there then you don't buy it HOWEVER I do know people who use it and prefer it to credit cards etc as they have no option but to pay that amount for 3 months. If I was ever in a position where I couldn't afford something that was essential I'd rather have a 3 payment no interest option than use a credit card that you can think oh I'll just pay minimum this month etc and get interest.

As far as I am aware I think it's possible for people to search sites through the actual Klarna app and they can create a one time card and still pay it off in 3. Adding it to your site may be easier for the customer.

I think it's good idea as it helps people spread the cost, without interest.

You could use paypal as a payment method, when you log in it gives you the option to pay in 3 for purchases over £30. It's not a selected payment method when you buy something online, you have to log into paypal then you'll see it as an option.

I understand why as a business owner, businesses want to offer these payment methods. especially if your competitors offer the method.

there really is no getting around the fact the things like Klarma are predatory lending. These small loans are not healthy debt. It’s the rare person who uses it only because their child needs new shoes or a warm coat and neither of those purchases can wait. Instead people waste money on instant gratification when saving and then buying the same item would mean having the extra fees available to spend on something else.

I use Klarna for the reason being is, if I need to send the item back, I can do and not worry about getting refunds etc as it just gets taken off my Klarna account. If I get an item and I keep it, I just pay it straight away. It just removes the risk of not getting my money back for 2 weeks.

I use Klarna pay in 3 for big purchases if it is available, it helps with budgeting and means I am not dipping into my savings and then forgetting to put the £ back

Same here. Really useful for that.

I have mixed feelings about it.

I have used it a couple of times to get things that I could have saved for but were one offs that I may not have been able to get again, or probably not at that price.

But, I think it's too easy to do, so would be very wary of doing it again.

Paypal is already a payment option - wasn't aware of the 3 purchases.

Paypal is popular but expensive.

Thanks

I use Klarna so that i can pay after receipt of the item. I like that if I return something I am not out of pocket while they process the claim. I always choose the pay within 30 days option.

And same here.

I personally wouldn't use it.
However as a small business is it going to cause you problems if it's abused.
Part of me thinks it's a way for people to try things without paying and just send them back.
Is it going to be worth the constant stock coming and going and the work it may entail?

This is generally my feelings. Which is partly why I asked the question.

Current returns are Nil - only had one request in two years online.

Would be a pain in the arse.

I love klarna. I’m rubbish at saving up but really good at paying off bills. It’s allowed me to make several purchases of things I really needed without worrying if I can afford it because the repayments are so low. I’ve never overspent or got in silly debt, and tbh I don’t think you can feel responsible for the people that do. I’m looking to buy a new oven in the next few weeks, and I’ll be buying it off one of the sites that offer klarna/clearpay.

ive never used it as I was left in debt years ago and any form of credit scares the hell out of me-we live in a house that my in-laws bought for us,we saved for the car and I’d rather save to buy rather than ‘I want!I must have!’ on other things
(I know how lucky I am and credit works for other people-ive been that single mum,making herself ill wondering how she’s going to buy the next pair of shoes-I might have used something like this years ago)

however,I have a friend who used it for her grandkids birthday/Christmas presents and swears by it-she has 6 grandkids and for her,it works

she knows what’s coming in and what goes out so budgets for the payments-in her eyes it’s not debt-it’s paid off long before it should be

id go for klarna if it’s cheaper for you-some will use it and others won’t

Thanks

Tbh l don’t buy stuff unless l can use Klarna. Don’t want to pay up front and then wait ages for a refund.

l always pay it off though straight away. I don’t even like the pay in 3 option, again because I’m still paying upfront.

My hoover broke so i used Klarna and paid it off in 3 payments and then used it to buy a new laptop. I wouldnt ever use it for smaller items but it is useful for more expensive purchases however i have the savings to pay it off in full if needed its just that id prefer to not use my savings and dont have the disposable income to do it all on one months pay so would have to save anyway. Klarna means i dont have to wait 3mths for the item but id be saving the same amount over the same time anyway.

The only time I use Klarna is when I’m doing a big clothes order and know I probably won’t keep it all but need to try multiple different options and don’t necessarily want £500 absent from my bank account for two weeks while I try it all and then returned it, wait for the return to be registered etc.

I am very strict about returning the stuff and then will pay my final invoice within the 28 days so there’s never any interest to pay, etc. I don’t know how it works for people who keep rolling it over or if they don’t pay.

If I was needing to use Klarna for a B&M bargains style shop of bits of food and household tat then that would represent a pretty dire financial situation and taking out credit wouldn’t seem like a good solution to it.

Interest free credit. Better than a credit card

I use Klarna , PayPal pay in 3 and/or Clearpay as it's easier to return items and free and it means I can spread repayments. I've never ever, not even once, not made my payments in time and so is not cost me anything. If anything I repeat them earlier than planned. I just like the convenience of not having to spend everything in one go and tbh I think that's because I'm on low fixed income and I don't have one big payday, I get smaller payments weekly , 3 weeks out of 4. So for me it feels like I'm spending less of that makess sense . Plus I was forced to buy a new washer this month, I couldn't afford £300 up front but can do it over 8-12 weeks and still eat and have a modest Christmas.

I’m far more likely to use Klarna than I would any other kind of credit and actually typically what I will do is pay for the Klarna with a credit card so I end up getting four months interest free credit instead of three. I use it for treats, would be hard to swallow in one hit but spread it over 4 months and I’m in.

Iv never used klarna but I do use pay pal.

Do you have Apple Pay? that’s my preferred payment methods and if you don’t have the above two then I usually don’t bother buying and go somewhere else.

Doesn't klarna mark negatively on your credit report? Sure I read recently that mortgage companies look down on applicants with klarna payments on it, the same they would re gambling etc