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Klarna Launches New BNLP Debit Card That Lets You Finance on the Fly -- but There's a Catch

Klarna, a buy now, pay later (BNPL) service, has introduced a new debit card in the US that allows users to finance purchases on the fly, but it comes with a significant catch: a high fee for late payments. The Klarna debit card, issued by First Electronic Bank and powered by Visa, enables users to make purchases and pay them off in four interest-free installments over six weeks, or opt for longer-term financing with interest. The card can be used anywhere Visa is accepted, and it also offers up to 3% cashback on purchases from select merchants. However, if a payment is missed, Klarna charges a late fee of up to $7, and if the payment remains unpaid after 14 days, an additional $7 fee is applied, which could make the cost of borrowing significantly higher. This new offering aims to expand Klarna's reach in the competitive BNPL market but raises concerns about the potential for consumers to accumulate debt due to the high late fees.

Read the Full CNET Article at:
[ https://www.cnet.com/personal-finance/credit-cards/klarna-launches-new-bnpl-debit-card-that-lets-you-finance-on-the-fly-but-theres-a-catch/ ]