In today’s digital era, financial technology, or FinTech, has revolutionized the way consumers shop online. One such innovation is the partnership between the Google Store and Klarna to provide flexible financing solutions. This article takes a deep dive into this collaboration and its benefits.
1. Introducing Klarna: The Giant of European FinTech
Klarna, a leading European bank, has disrupted traditional financial services by offering innovative payment solutions. Serving over 90 million consumers and partnering with more than 200,000 merchants across 17 countries, Klarna provides a secure and hassle-free shopping experience.
2. Google Store Financing: Powered by Klarna
Google Store has joined hands with Klarna, bringing their flexible financing solution to consumers. This partnership allows customers to purchase their favorite Google products such as phones, tablets, and Pixel Watches with ease and convenience.
3. The Allure of 0% APR Financing
Google Store Financing offers 0% APR, making it an attractive option for consumers. This means you can purchase the latest Google products without worrying about additional interest charges, as long as you follow the payment plan.
4. The Simplicity of Google Store Financing
The process of financing your Google Store purchase with Klarna is straightforward. Simply select the ‘Pay with Klarna’ option at checkout, apply for a Google Store Financing account with Klarna, and upon approval, complete your transaction with your new account.
5. Eligibility for Financing
Not all products are eligible for financing. To qualify for the ‘Buy Now, Pay Later’ option, you must add a qualifying product to your basket or connected home product(s) with a value of £49 or more. For 24-month financing, the value of the product(s) should be £149 or more.
6. How Klarna Financing Works
Klarna offers a simple and safe way to finance your purchases. Add products to your basket, select ‘Klarna’ at checkout, enter personal details for approval, and Klarna will handle the rest. You can even manage your payments through the Klarna app.
7. Understanding Required Monthly Payments
Your monthly installments depend on the total purchase price divided by the length of the financing term. This includes taxes and delivery charges, spread over a period of 24 months.
8. Making Payments and Checking Balance
Klarna allows you to check your total balance and make payments through their website or by calling their customer service. Google does not store any information about your financing, ensuring privacy and security.
9. Financing Multiple Purchases
Once approved, you can finance multiple items from the Google Store using Klarna, up to your approved credit limit. This feature enables you to shop freely without worrying about exceeding your budget.
10. Impact on Credit Score
Applying for financing options can affect your credit score. Klarna performs soft and hard searches with credit reference agencies for credit assessment. Failing to make agreed repayments can result in a negative impact on your credit file and score.
11. Reasons for Rejection of Financing Application
There are various factors that can lead to the rejection of your financing application. These may include changes in contact details, insufficient payment history, previous order history, missed or delayed payments, or reported financial difficulties.
12. Responsible Lending with Klarna
As a responsible lender, Klarna does not approve all applications to support ethical and sensible spending habits. This ensures that Klarna provides responsible lending services to all customers.
In conclusion, the partnership between Google Store and Klarna has reshaped the online shopping experience. It offers a seamless, safe, and simple way to finance your purchases, promoting a more inclusive and accessible digital economy.
Note: Google Store Financing is a financing solution issued and serviced solely by Klarna Bank AB, which is authorized and regulated by the Financial Conduct Authority.