Klarna Docs - Advertising guidelines

Advertising guidelines

Klarna offers three different payment options in the UK: Pay in 30 days, Pay in 3 instalments, and Financing. Pay in 30 days and Pay in 3 instalments are exempt (unregulated) credit products, whilst Financing, which is a regulated credit product. Read more about our advertising guidelines for each payment offering below.

Unregulated financing

Klarna offers two different unregulated financing offerings in the UK: Pay in 30 days and Pay in 3 instalments. Both are unregulated credit products.

Pay in 30 days allows a consumer to get up to 30 days to pay after purchase. This product is completely interest free and there are no late fees applied.

Pay in 3 instalments allows a consumer to spread the cost over 3 equal monthly instalments for their product. This product is completely interest free and there are no late fees applied.

These two products aren't regulated by the Financial Conduct Authority. However, there are some important things to consider when mentioning these products in your advertising – including Advertising Standards rules. We've created this guide to help you understand the advertising requirements of Klarna’s unregulated credit products in your marketing channels: 

Unregulated Merchant Advertising Guide. 22.02.21.pdf
3.5 MB

Regulated financing

Klarna’s financing products are regulated credit agreements. Financing falls into two categories, fixed sum credit and revolving credit (also known as running account credit).

Fixed sum credit is a regulated credit agreement with a fixed duration (term). Klarna offers fixed sum credit agreements from 6 months to 4 years. Fixed sum credit can be offered on interest-free or interest- bearing amounts and may incur a default fee if a repayment is missed

Revolving credit is a regulated credit agreement with no fixed duration. This allows consumers to use their account on a rolling basis up to an agreed limit. Revolving credit can be offered with different interest
rates (possibly at 0%) and may include a promotional period for a set period of time. Once this time has passed, if the consumer has not made sufficient repayments over the set period of time the promotion period is offered, any promotional interest rate will revert to Klarna’s standard rate of interest Klarna Financing is a fully-regulated credit product.

We've created this guide to help you understand the advertising requirements of Klarna’s regulated credit products in your marketing channels:

Regulated Financing Merchant Advertising Guide. 07.04.21.pdf
3.4 MB

The Advertising Standards Authority (ASA) consider the following when looking at an ad:

  • Too much emphasis on speed and ease of access
  • The targeting of vulnerable groups
  • Whether the advertisement seems to make taking out a loan seems unimportant - or appropriate for unimportant reasons
  • "Interest-free" claims shouldn't encourage consumers to take out more credit if they're already struggling to pay off debt
  • Avoid giving the impression that the product will solve wider financial difficulties or concerns
  • Advertising should be decent and should not cause serious or widespread offense. Take care to avoid causing offense on the grounds of race, religion, gender, disability, sexual orientation and age.

Essentials when advertising Klarna

  • Risk warnings should not be less prominent than the potential benefits of the product/service.
  • Always include a disclosure.
  • Always include the following risk warning:
    Please spend responsibility. Borrowing more than you can afford could seriously affect your financial status. Make sure you can afford your monthly repayments on time.
  • Keep it simple. Don’t lose a customer because the payment instructions were too complicated, but do make it clear what you are offering.
  • Stand out for the right reason. Highlight the payment option you offer, but be sure to be clear, fair and not misleading.
  • Upstream too. Be sure to include Klarna throughout your site - before the shopper even gets to the checkout. Doing this will help make it clear that Klarna is the lender. Use our on-site messaging tool to create your landing page so Klarna can keep the FAQs updated.
  • Be sensitive to the situation.
    Consider what is going with your customers and in the wider market as a whole. Use this knowledge to decide how you promote and market Klarna in all your channels. One message does not fit all circumstances.
  • Avoid using icons only.
    Guide your customers through simple numbered steps instead, so they know exactly what to do next. 
  • Don't overcomplicate it.
    Prioritise clarity. Your customers will appreciate it on their way to the checkout. 
  • Don't encourage debt.
    Do not encourage shoppers to spend outside of their means. Using phrases such as ‘strapped for cash?’, ‘don’t wait until payday’ or ‘broke AF’ are unacceptable and irresponsible. You have an obligation to ensure your customers stay financially healthy.
  • Make sure your ads are socially responsible to consumers and society.

Klarna Terms & Conditions - UK