Buy Now Pay Later in Sweden: How to use it 2024



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If you’ve started to dip your toes into the Swedish market online or in physical stores, you may have encountered an increasingly popular payment method known as “Buy Now Pay Later” (BNPL). But what is it exactly, and how does it work?

Buy Now Pay Later in Sweden essentially allows you to defer payments for purchases, letting you walk away with the item immediately but pay for it over time. This offers a level of financial flexibility that can be particularly helpful when managing a budget or juggling life expenses.

Given the rising popularity of BNPL in Sweden, understanding how this payment option works can be a valuable addition to your financial toolkit. And while it does come with its own set of pros and cons, having this knowledge enables you to make more informed decisions when managing your finances in Sweden.


  • Buy Now Pay Later (BNPL) offers flexibility in payments and a convenient shopping experience.
  • Popular services in Sweden include Klarna, Afterpay, PayPal Credit, and Laybuy.
  • While BNPL has its advantages, users must be wary of risks like high interest rates, late fees, and potential impact on credit score.
  • Responsible BNPL usage involves timely payments, understanding terms, and budgeting.
  • For foreigners, awareness of currency rates, local regulations, and payment reminders can optimize the BNPL experience.

How Buy Now Pay Later Works

Buy Now Pay Later (BNPL) is a straightforward yet intriguing financial service that is reshaping the way people shop. The premise is simple: instead of paying for a product or service in full at the time of purchase, you can opt to split the cost into smaller, more manageable installments. This model works both online and in brick-and-mortar stores, offering you a chance to take home your desired item without putting a dent in your wallet right away.

When you reach the checkout counter or webpage, you’ll often see the BNPL option listed among other payment methods like credit cards, debit cards, or direct bank transfers. Upon selecting it, you’ll generally go through a swift approval process. This usually involves providing some basic personal information and potentially a soft credit check, which doesn’t affect your credit score. Once approved, you can finalize your purchase.

Here’s where the mechanics get interesting. Payments for your purchase are scheduled over a predetermined timeframe—usually weeks or a few months. The schedule is often flexible, allowing you to choose between weekly, bi-weekly, or monthly payments. Many BNPL services offer interest-free installments as long as you adhere to the agreed-upon payment schedule. This makes it a potentially cost-effective way to manage large purchases without accumulating interest, provided you pay on time.

However, it’s crucial to be aware that not all BNPL services operate on the same terms. Some may start charging interest after a particular period, or they might include service fees. It’s always advisable to read the fine print and understand the full scope of your obligations before clicking that “Confirm Purchase” button. The idea is to use the convenience and flexibility of BNPL without falling into financial pitfalls.

Related: Swedish Currency: Useful Info about Swedish Krona (SEK)

Popular Buy Now Pay Later Services in Sweden

If you’ve spent any amount of time shopping in Sweden, you’ll notice that Buy Now Pay Later options are not a one-size-fits-all affair. Several companies offer BNPL services, each with its own set of features, terms, and conditions. Here’s a look at some of the popular players in the Swedish market:

ServiceOriginPayment OptionsSpecial Features
KlarnaSweden14 or 30 days, installmentsMobile App
AfterpayAustraliaFour equal installments every 2 weeksNo interest if paid on time
PayPal CreditGlobalVarious termsIntegrates with PayPal
LaybuyNew ZealandSix weekly automatic paymentsSoft credit check


Founded in Stockholm in 2005, Klarna is perhaps the most well-known BNPL service in Sweden. With its ubiquitous presence in online stores and a growing footprint in physical retail outlets, Klarna offers a variety of payment options. You can choose to pay within 14 or 30 days, or opt for installment payments over a period of time. The company also provides a mobile app that helps you track your purchases and payments.


Another big name in the BNPL landscape is Afterpay. While it originated in Australia, its service is widely available and accepted in Sweden. Afterpay allows you to make a purchase and pay for it in four equal installments due every two weeks. There are no additional charges if you make your payments on time.

PayPal Credit

While not a traditional BNPL service, PayPal Credit functions on similar principles. If you already have a PayPal account, it offers an option to pay for purchases over a set period, typically six months, without incurring interest. This can be particularly convenient for those who are already accustomed to using PayPal for online transactions.


Originating from New Zealand, Laybuy is another service that has gained popularity in Sweden. It lets you receive your purchase immediately and spread the total cost over six weekly automatic payments. Laybuy conducts a soft credit check to determine eligibility like other services.

Each of these services has its own advantages and potential drawbacks, such as varying interest rates, payment schedules, and fees. Before opting for any BNPL service, it’s imperative to read the terms and conditions carefully. By understanding the nuances of each option, you’re better equipped to select a service that aligns with your financial situation and shopping preferences.

Advantages of Using Buy Now Pay Later in Sweden

The rising popularity of Buy Now Pay Later services in Sweden isn’t just a fleeting trend; it signifies a shift in how people are approaching personal finance and consumerism. The service has a set of distinct advantages that could explain its fast-growing appeal.

Flexibility in Payments

One of the primary benefits of using BNPL is the flexibility it offers in managing your cash flow. Unlike traditional payment methods where the full amount is debited immediately, BNPL allows you to spread the cost over a set period. This can be particularly advantageous when dealing with unexpected expenses or juggling a tight budget.

No Immediate Financial Impact

The ability to defer payments can be a lifeline when you need to make a necessary purchase but can’t afford to pay for it all at once. With BNPL, you can acquire what you need without causing immediate financial strain, enabling you to better plan and allocate your resources.


Let’s face it; sometimes, we all appreciate a simplified checkout process. The quick and generally hassle-free approval for BNPL services often makes it a more convenient option compared to traditional credit checks or payment setups.

Access to High-Value Items

Some purchases require a significant financial commitment that may not be feasible in a single payment. By using BNPL services, items like furniture, electronics, and even educational courses become more accessible. You get to enjoy the product or service immediately while paying for it in digestible chunks.

Enhanced Shopping Experience

Many BNPL services come with user-friendly apps that not only help you manage your payments but also offer features like purchase tracking, spending analysis, and even personalized shopping suggestions based on your history.

Risks and Considerations

While the advantages of using Buy Now Pay Later services are clear, it’s equally important to weigh the potential risks and considerations. Just as BNPL can be a useful tool for financial flexibility, it can also become a slippery slope to financial pitfalls if not managed carefully.

Interest Rates

Although many BNPL services advertise zero-interest installments, this usually comes with a caveat. Interest-free periods may be limited, and if you fail to make a payment within the specified timeframe, steep interest rates can kick in. These rates often surpass those of traditional credit cards, making it a costly mistake if you’re not vigilant about repayments.

Impact on Credit Score

Some BNPL services may report your payment behavior to credit agencies. While timely payments can help improve your credit score, late or missed payments can have a detrimental impact. In certain cases, failure to meet payment obligations could lead to debt collection processes, further damaging your creditworthiness.

Possibility of Accumulating Debt

The ease and convenience of BNPL can sometimes lead to impulse purchases and over-spending. If you’re using multiple BNPL services concurrently, it’s easy to lose track of your various payment schedules, leading to the accumulation of debt that might become challenging to manage.

Hidden Fees

Always read the fine print. Some BNPL providers charge late fees, administration fees, or other hidden charges that could catch you off guard. These fees can add up quickly and turn your interest-free deal into a financial burden.

Psychological Factor

There’s a psychological aspect to consider as well. Because BNPL often doesn’t feel like “real money” in the way that a direct debit from your bank account might, it’s easy to underestimate how much you’re actually spending. This illusion can lead to financial missteps that only become apparent when the bills start coming in.

Currency Considerations

For foreigners in Sweden, it’s also important to note that currency exchange rates and international transaction fees could apply if you’re using a BNPL service for cross-border purchases. Always check how these extra charges might affect your overall payment.

How to Use Buy Now Pay Later Responsibly

Utilizing the Buy Now Pay Later option can indeed add a layer of flexibility and convenience to your financial life, especially in a new environment like Sweden. However, the key to truly benefiting from this service lies in using it responsibly. Here are some suggestions on how to do just that:

  • Monitoring Purchases
    • The first step towards responsible usage is being fully aware of what you’re buying and why. The allure of BNPL can sometimes make non-essential purchases seem more justifiable. Before opting for BNPL, assess whether the item or service you’re eyeing is a need or a want. This introspection can save you from future financial headaches.
  • Understanding Terms and Conditions
    • BNPL is not a uniform service; different providers have different rules. Take the time to read through the terms and conditions thoroughly. Look out for details like interest rates, repayment periods, and any additional fees that could apply. The more informed you are, the less likely you are to encounter surprises down the line.
  • Repaying on Time
    • It might seem like a no-brainer, but prompt repayment is the cornerstone of responsible BNPL usage. Set reminders for payment due dates and consider linking your BNPL account to a reliable funding source to ensure on-time payments. Timely repayment not only helps you avoid late fees and high-interest rates but can also positively impact your credit score if the BNPL service reports to credit agencies.
  • Limiting Active BNPL Accounts
    • While it might be tempting to use multiple BNPL services for different kinds of purchases, this can make it increasingly difficult to keep track of all your payment schedules. Try to limit the number of active BNPL accounts you have to make management more straightforward.
  • Budgeting for BNPL
    • Include your BNPL payments in your monthly budget just as you would with any other fixed or variable expense. This will give you a more accurate picture of your financial health and help you avoid overspending.
  • Using BNPL as a Strategic Tool
    • In some cases, BNPL can be a strategic financial tool. For instance, you might opt for BNPL for a high-value item when you know you’ll have the funds to cover it in the near future but don’t want to deplete your cash reserves right away. In such scenarios, BNPL acts as a short-term bridge, making it easier to manage your financial landscape.

Tips for Foreigners Using Buy Now Pay Later in Sweden

While Buy Now Pay Later services offer a universal appeal in terms of financial flexibility, the experience can be slightly different for foreigners navigating the Swedish market. Here are some tailored tips to ensure a smoother and more advantageous BNPL experience in Sweden:

  • Currency and Exchange Rates
    • Be aware of the currency in which you’ll be billed. If your home account is in a currency other than the Swedish Krona, consider the exchange rate fluctuations and any international transaction fees. Knowing the full cost can help you make more informed decisions.
  • Local Regulations
    • Sweden has its own set of consumer protection laws and financial regulations. Familiarizing yourself with these can offer insights into your rights and obligations when using financial services like BNPL. This knowledge can come in handy in case you encounter any issues or disputes with your BNPL provider.
  • Building Credit History
    • As a foreigner, you may be starting from scratch in terms of building a credit history in Sweden. Some BNPL providers report to local credit agencies, so using these services responsibly can be a step towards establishing a good credit score.
  • Digital Platforms
    • Given the highly digital nature of Swedish society, many BNPL services offer comprehensive mobile apps. Make sure to download the app of your chosen service for easier tracking of your purchases, payment deadlines, and other account details.
  • Language Barrier
    • While most Swedish BNPL services offer English language options, some aspects, like customer support or legal terms, might be primarily in Swedish. If language is a concern, seek services known for strong English language support or use translation tools to better understand the terms and conditions.
  • Consult Peer Experiences
    • The experience of other foreigners who have used BNPL services in Sweden can offer valuable insights. Online forums, social media groups, and even community events are great platforms to seek advice and share experiences about using BNPL services in Sweden.
  • Set Up Payment Reminders
    • Especially when you’re juggling life in a new country, it’s easy to lose track of dates. Setting up reminders or using a budgeting app that includes your BNPL due dates can help you avoid late payments and the accompanying penalties.


Sofia is our Relocation Expert, who brings first-hand experience in moving to Sweden from abroad. She moved to Sweden over a decade ago and navigated the complexities of relocation herself.

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