Klarna
In short
A Swedish financial technology company and digital bank that specialises in digital payments and short-term consumer credit. It is widely recognised for its buy now, pay later services.
In plain words
Klarna lets people buy things immediately and pay for them later in instalments or at a later date. It works as a digital wallet and payment method for many online shops.
A simple example
You buy a pair of trainers for £100 online using Klarna. Instead of paying all at once, you pay £25 every two weeks until the total is settled.
Why it matters
It has changed how people shop online by making credit more accessible and instant. It also provides businesses with easy tools to manage digital payments.
Easy to mix up
Do not confuse it with a traditional high-street bank, as it focuses primarily on digital payments and flexible credit.