Klarna also offers the option of paying for goods over a longer term and the Terms and Conditions section of its website indicates that interest of 18.9 per cent a year will be charged on any balance not repaid by the end of the BNPL period.This interest rate is an important part of how Klarna makes money. In its 2020 interim accounts the company stated that 60 per cent of revenues came from customers in the first half of last year, and the remaining 40 per cent came from the commissions retailers pay on every sale.
