Riding on fresh US$300 million ($462.7m) investment from ASB owners the Commonwealth Bank of Australia, Swedish payments and credit provider Klarna is launching across the Tasman, competing head on with Afterpay that offers a similar
Buy now pay later platform Klarna headed for New Zealand
The buy now, pay later (BNPL) provider lets customers shop online and pay for goods in four instalments, by creating a virtual "Ghost Card" in the Klarna app.
Ghost Cards are single use, and unique to each purchase. Klarna aims to replace website checkouts - requiring customers to shop with credit cards that have high annual interest rates - with its BNPL platform.
There are no annual fees, and customers can get easy refunds for orders within 14 days. Klarna also offer.
Late payments by Klarna customers in the United States incur a US$10 fee, but this might not be the case in Australia and New Zealand.
"There is currently no interest or fees for Australian consumers," Klarna's spokesperson said.
Retailers are paid upfront and in full by Klarna, and both they and customers get payment protection.
Merchant fees for Australian retailers vary, and Klarna declined to disclose them.
In the United States, Klarna charges retailers monthly product fees of US$30, and US$0.30 per transaction. Interest charged varies from up to 3.29 per cent to 3.79 per cent, depending on service offering.