As a long-time retail industry expert and admittedly picky Zara shopper, I know firsthand how tempting it can be to splurge on a trendy new outfit or the perfect pair of shoes. But what happens when your champagne taste doesn‘t quite align with your beer budget? That‘s where "buy now, pay later" options like Klarna come in handy for many consumers.
In this post, I‘ll give you the inside scoop on whether you can use Klarna‘s installment payments when shopping at Zara online or in stores. I‘ll also take a closer look at the explosive growth of BNPL, the pros and cons of using these services, and how Zara stacks up against competitors in terms of payment options.
The Buy Now, Pay Later Boom
If you haven‘t heard of Klarna before, you‘re probably in the minority. The Swedish fintech company, founded in 2005, has taken the retail world by storm with its flexible payment solutions. Klarna allows shoppers to split the cost of a purchase into smaller installments spread out over weeks or months, often with no interest or fees (as long as you pay on time).
And Klarna is just one player in the rapidly expanding BNPL space. Competitors like Affirm, Afterpay, and Sezzle are also vying for a piece of the action. According to a 2022 report by Insider Intelligence, BNPL payments in the US are expected to reach $75.6 billion in 2022, up from just $20 billion in 2019. That‘s an increase of nearly 400%!
Source: Insider Intelligence
So why are so many shoppers hopping on the BNPL bandwagon? For one, these services can be incredibly convenient for budgeting and managing cash flow. If you have a steady paycheck coming in, it‘s often easier to commit to four $50 payments than a single $200 charge on your credit card.
BNPL plans also tend to be more accessible than traditional financing options. Klarna, for instance, only performs a soft credit check that won‘t ding your credit score. And according to a LendingTree survey, 30% of BNPL users said they wouldn‘t have been approved for other forms of credit.
There‘s also a psychological factor at play. Research has shown that installment payments can make shoppers feel like they‘re spending less, even if the total cost is the same. A 2021 study published in the Journal of Consumer Research found that BNPL users tend to buy more expensive items and spend more overall per shopping trip compared to those who pay in full upfront.
Does Zara Accept Klarna?
Now, back to the question at hand: Can you pay with Klarna at Zara? I hate to be the bearer of bad news, but unfortunately, the answer is no. As of March 2023, Zara does not offer Klarna or any other buy now, pay later options, either online or in its brick-and-mortar retail stores.
I‘ve scoured Zara‘s website and called up customer service just to double check, and there‘s no mention of Klarna anywhere. The payment methods that Zara does accept include:
- All major credit cards (Visa, Mastercard, American Express, Discover)
- Debit cards
- PayPal
- Apple Pay (for online and app purchases)
- Zara gift cards
Zara also has its own store credit card through Comenity Bank, but that‘s more of a traditional financing option and not a flexible installment plan like Klarna offers.
As someone who shops at Zara regularly and keeps a pulse on the latest retail trends, I have to admit I was a bit surprised to discover the brand isn‘t on the BNPL train yet. After all, many of Zara‘s close competitors, including H&M, Mango, and ASOS, do offer Klarna at checkout.
In fact, Klarna has partnerships with over 400,000 retail brands across a wide range of sectors, from fashion and beauty to electronics and home goods. Some notable examples:
- Sephora
- Nike
- Adidas
- Macy‘s
- Bed Bath & Beyond
- Wayfair
- Urban Outfitters
- Etsy
- Ticketmaster
- StubHub
So what gives with Zara‘s resistance to jumping on the BNPL bandwagon? It‘s possible the company simply doesn‘t want to deal with the potential risks and administrative challenges of offering installment payments.
BNPL may be convenient for shoppers, but it‘s important to remember that these services don‘t come free for retailers. Klarna and its ilk typically charge merchants a fee for each transaction, which can eat into profit margins. There‘s also the issue of missed payments and defaults, which can create headaches on the retailer‘s end.
Another consideration is that Zara already offers a generous return policy – you have 30 days to bring back items in new condition for a full refund. In a way, that flexibility may reduce the perceived need for installment payment plans among Zara shoppers.
Who‘s Using Buy Now, Pay Later?
Interestingly, while Klarna and other BNPL services are often associated with younger consumers, the data tells a slightly different story. According to Experian, Generation X (ages 40-55) is actually leading the pack in BNPL adoption in the US, followed by Millennials (25-40) and Baby Boomers (56-75).
Generation Z (18-24) comes in a distant fourth, likely because many in this age group have limited credit history and may not qualify for BNPL accounts. Here‘s a breakdown of BNPL users by generation in 2022:
| Generation | Percent of BNPL Users |
|---|---|
| Gen X | 32.8% |
| Millennials | 30.3% |
| Baby Boomers | 25.2% |
| Gen Z | 11.7% |
Source: Experian
Income also appears to be a factor in BNPL usage. A 2022 Morning Consult survey found that US adults with household incomes under $50,000 were most likely to have used a BNPL service, at 30%. In contrast, just 21% of those earning over $100,000 reported using BNPL.
So what does this mean for Zara and its core customer base? While the brand appeals to a wide range of ages, its trend-forward styles and affordable price points have made it especially popular with Millennials and Gen Z. These cohorts may be more likely to seek out flexible payment options compared to older generations.
At the same time, Zara‘s "mid-market" positioning means it may not attract as many budget-constrained shoppers as fast-fashion competitors like Forever 21 or Shein. Zara fans tend to be fashion-conscious consumers who are comfortable spending a bit more for quality and style – and who may be able to afford purchases without relying on BNPL.
The Klarna Business Model
To fully understand the BNPL landscape, it‘s worth taking a closer look at how Klarna and other providers actually make money. At first glance, it might seem too good to be true – how can these companies afford to offer interest-free installment plans?
The key is in the fees charged to retailers. When a customer makes a purchase with Klarna, the merchant pays a percentage of the total transaction value (reportedly around 3-4%) plus a flat fee of $0.30. In exchange, Klarna assumes responsibility for collecting payments from the customer and absorbs any losses from non-payment.
For retailers, partnering with Klarna can be a way to boost sales and attract new customers. A 2021 Klarna survey found that 64% of shoppers would spend more at a retailer that offered installment payments. And 47% said they were more likely to complete a purchase if BNPL was an option.
Of course, there are trade-offs to consider. In addition to the fees mentioned above, retailers may face challenges with reconciling orders and handling refunds for BNPL purchases. And there‘s always the risk that partnering with a specific provider could alienate customers who prefer other payment methods.
It‘s also worth noting that Klarna and other BNPL companies do charge interest and fees to a subset of users. Klarna‘s "Pay in 30 days" option is always interest-free, but longer-term 6-, 12-, or 24-month plans may carry an APR of up to 18.99% depending on credit approval.
Late fees also apply if you miss a scheduled payment – for Klarna, it‘s a maximum of $7 per installment. These charges can add up quickly, so it‘s crucial to stay on top of your repayment schedule if you do use BNPL.
Weighing the Pros and Cons of BNPL
As a seasoned shopper and retail industry observer, I‘ve seen firsthand how buy now, pay later options can be both a blessing and a curse. On the one hand, being able to spread out the cost of a purchase can provide much-needed flexibility and peace of mind, especially for big-ticket items or unexpected expenses.
I‘ll never forget the time my trusty washing machine conked out on me, right before hosting family for the holidays. I was able to snag a replacement quickly thanks to Affirm‘s installment plan, without having to dip into my emergency fund or rack up credit card debt.
But I‘ve also witnessed the darker side of BNPL, when the temptation to overspend outweighs common sense. It‘s all too easy to fall into the trap of treating installment payments like "free money," without considering the long-term impact on your budget.
A friend of mine learned this lesson the hard way after going on a Klarna-fueled shopping spree at Sephora. She ended up with a vanity full of expensive skincare products she didn‘t really need – and a sizable bill to match. While she was able to pay it off eventually, it meant cutting back on other financial goals like building her savings.
The reality is that BNPL can be a useful tool in moderation, but it‘s not a substitute for responsible money management. Before signing up for any installment plan, it‘s important to ask yourself:
- Can I comfortably afford the payments within my current budget?
- Do I have a plan to pay off the balance on time and avoid late fees?
- Am I making this purchase because I truly need or value the item, or just because BNPL makes it feel more attainable?
- Would I still make this purchase if I had to pay in full upfront?
Personally, I‘ve found that setting clear boundaries and rules for myself around BNPL usage helps keep my spending in check. For instance, I only use installment plans for necessary purchases over a certain dollar amount – say, $200 – and I always make sure I have the cash on hand to cover the full cost if needed.
I also try to stick with reputable BNPL providers that offer transparent terms and good customer service. Klarna, Affirm, and Afterpay all have solid track records in my experience, but I still read the fine print carefully before committing.
The Bottom Line
To bring it back to the original question: No, Zara does not currently offer Klarna or any other buy now, pay later options for shoppers. The retailer has stuck with traditional payment methods like credit cards, PayPal, and its own store card.
That said, the BNPL market is growing rapidly, and consumer demand for flexible payment options shows no signs of slowing down. It‘s possible that Zara may reevaluate its stance in the future, especially if it starts to lose market share to competitors who do offer installment plans.
As a loyal Zara customer, I would certainly appreciate having the option to use Klarna for larger purchases. But I also recognize that BNPL isn‘t right for everyone or every situation. It‘s crucial to weigh the potential benefits against the risks, and to use these services responsibly if you do decide to take the plunge.
At the end of the day, the most important thing is to stay true to your personal financial goals and values. Whether you‘re Team Klarna or Team Pay-in-Full, what matters most is making thoughtful, intentional choices with your hard-earned money. And of course, rocking that new Zara outfit with confidence – however you choose to pay for it.
