Le Lézard
Classified in: Science and technology, Business
Subjects: FNC, FRI

Buy Now, Pay Early: 96% of Klarna Black Friday purchases in US paid off on time or early

NEW YORK, Feb. 22, 2024 /PRNewswire/ -- Klarna, the AI-powered global payments provider and shopping assistant, has revealed that 96% of BNPL purchases made during the 2023 Black Friday weekend in the US were paid on time or early. Notably, nearly a third (30%) of US purchases were paid off early, ahead of their due date, up from the 24% recorded in 2022.

In 2023, Klarna saw a 30% increase in orders placed by US shoppers on Black Friday compared to the year prior, as consumers shift away from credit cards in favor of healthier, interest-free BNPL options. This surge in transactions highlights the rising preference for Klarna's fairer, more sustainable payment options in the US, which now boasts over 37 million US customers ? a 32% increase year-over-year. Notably, Klarna's fastest-growing age group in the US is individuals over the age of 50, illustrating the widespread appeal of BNPL as a healthier credit option to credit cards that spans all generations. 

"This data clearly shows that consumers understand Klarna's BNPL products, underscoring the growing demand for BNPL services and the effectiveness of our BNPL model, while also demonstrating the financial prudence of our 37 million US consumers who are looking for financial flexibility without compromising their financial health," said Erin Jaeger, Head of North America.

These positive repayment trends from Klarna starkly contrast the financial strain observed among US credit card users, nearly half (47%) of whom anticipated difficulties in settling their holiday credit card debts in full amidst soaring annual percentage rates (APRs). 

Americans currently owe $1.13 trillion on their credit cards, with balances surging by $50 billion in the last quarter of 2023, according to a new report from the Federal Reserve Bank of New York. Furthermore, a 2023 report from the Consumer Financial Protection Bureau (CFPB) highlights a concerning increase in credit cardholders who are either carrying over balances month-to-month or falling into arrears. Alarmingly, nearly one-tenth of credit card users are trapped in "persistent debt," paying more in interest and fees annually than towards their loan principal.

"Klarna's products are not built on encouraging people to borrow as much as possible at the highest possible rate like credit card providers. When it makes sense to use credit, our interest-free BNPL product, with short-term repayments and no revolving credit, presents a fairer, more sustainable choice. This approach results in our users maintaining an average balance of $150, far below the $6,000 often seen with credit cards," Jaeger added.

Klarna's Pay in 4 BNPL product is always interest-free and incurs no fees when payments are made on time when shopping at Klarna's 500,000 integrated retail partners worldwide. To encourage on-time payments, Klarna charges a late fee of up to $7 for payments made after a ten-day grace period and multiple friendly reminders. The total of late fees charged on an order will never exceed 25% of the total purchase amount.  Klarna products also have additional safeguards, including new lending decisions on each transaction and restrictions on the use of Klarna services until missed payments are fulfilled to prevent debt from accumulating. These features have contributed to Klarna's global default rate remaining below 1%, which is 30-40% lower than credit card companies.


Adaline Colton
+1 (614) 429-9125
[email protected]

The following files are available for download:


Buy Now Pay Early


SOURCE Klarna Bank AB (publ)

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