Apple Pay Now Includes Klarna: A New Way to Buy Now, Pay Later

Apple has just made it easier for users to pay for their purchases with the addition of Klarna, a popular Buy Now, Pay Later (BNPL) service, to Apple Pay. This comes on the heels of Apple’s decision to shut down its own Pay Later service, which launched in 2023. Now, with Klarna integrated into Apple Pay, users can choose to split their payments into four interest-free installments—a flexible option for those looking to spread out their purchases.

But is this addition good news for everyone? Let’s take a closer look at what this means for Apple Pay users and how BNPL services like Klarna can impact spending habits.

What is Klarna?

Klarna is one of the leading BNPL services, allowing customers to make purchases and then split the cost into four interest-free payments. It’s a popular option, especially for those who want to make bigger purchases more manageable by spreading out payments over time.

While Klarna and other BNPL services like Affirm (which was added to Apple Pay earlier this year) offer flexibility, there are some potential downsides. Surveys suggest that BNPL services can sometimes lead to overspending, as it’s easier for people to buy things when they don’t have to pay the full price upfront.

A New Era for Apple Pay

Adding Klarna and Affirm to Apple Pay gives users more options at checkout. Whether you’re buying something in-store or online, you can now choose one of these BNPL services directly within the Apple Pay app. It’s a convenient way to finance purchases without the need for credit cards or personal loans.

But it’s not just about BNPL—Apple has rolled out a few other new features for Apple Pay users:

• Use Apple Pay on third-party desktop browsers like Chrome: This expands Apple Pay’s reach beyond Safari, making it even easier to use across different platforms.
• Tap to Provision: You can now add new cards to Apple Pay simply by tapping them on the back of your iPhone, making the setup process quicker and more seamless.

What to Watch Out For

While Klarna’s interest-free installments sound great, it’s important to keep in mind that BNPL services can lead to some challenges. For one, these loans are often harder to track, as they’re not typically reported to credit bureaus. This means it’s easier to lose sight of how much you owe, which can lead to accidental overspending.

Additionally, earlier this year, the Consumer Financial Protection Bureau (CFPB) classified BNPL services as credit card providers, meaning they are now required to investigate disputed purchases and provide refunds for returned products. This is good news for consumers, as it offers more protection when using these services.

Final Thoughts

The addition of Klarna to Apple Pay gives users even more flexibility at checkout, letting them spread payments out over time with no interest. For those who are smart about their spending and want a little extra breathing room when making larger purchases, this can be a great option. Just be mindful of how much you’re spending and keep track of your payments to avoid any pitfalls.

With Klarna, Affirm, and other new features like Tap to Provision and desktop browser support, Apple Pay continues to grow as an essential tool for modern consumers. Whether you’re buying groceries, upgrading your tech, or shopping for gifts, Apple Pay has your back with more ways to pay than ever before!