The Rise of ‘Pay Later’ in Europe: Apple Pay & Klarna Lead the Charge
The convenience of ‘buy now, pay later’ (BNPL) services is rapidly expanding across Europe. Recently, Apple Pay users in Italy and France gained access to Klarna’s installment payment options, both online and in physical stores. This addition brings the total number of markets offering this integrated service to eight, including Denmark, Spain, Sweden, the US, the UK, and Canada. This expansion signals a significant shift in consumer spending habits and a growing acceptance of flexible payment solutions.
The appeal is clear: BNPL allows consumers to spread the cost of purchases over time, often interest-free, making larger purchases more accessible. For retailers, it can boost sales by increasing conversion rates and average order values. However, it’s crucial for consumers to understand the terms and conditions to avoid potential late fees or impacts on credit scores.
How Does Klarna’s ‘Pay Later’ with Apple Pay Work?
The process is designed to be seamless. Users access the Klarna app on their iPhone or iPad, select “Pay Later” to view available options. Currently, these options include paying in three installments, paying within 30 days, or longer-term plans with interest rates starting from 0% for larger amounts. Klarna performs a soft credit check to assess affordability, a process designed not to impact credit scores.
Apple Pay’s inherent security features further enhance the experience. Apple doesn’t store transaction information, providing an extra layer of privacy for users. This combination of convenience, flexibility, and security is driving adoption rates.
Beyond Payments: The Broader Trend of Mobile-First Finance
The integration of Klarna and Apple Pay isn’t an isolated event. It’s part of a larger trend towards mobile-first finance, where consumers manage their money and make purchases directly from their smartphones. This trend is fueled by several factors, including the increasing smartphone penetration, the rise of fintech companies, and changing consumer expectations.
The Impact on Traditional Credit Cards
BNPL services are increasingly challenging the dominance of traditional credit cards, particularly among younger demographics. A recent study by Statista shows that BNPL usage among Gen Z and Millennials is significantly higher than among older generations. This is because BNPL offers a more transparent and accessible alternative to credit cards, often without the associated fees and complex terms.
However, credit cards still hold advantages in terms of rewards programs and building credit history. The future likely involves a coexistence of both options, with consumers choosing the payment method that best suits their individual needs and financial situation.
The Role of Regulation
As BNPL gains popularity, regulators are paying closer attention. Concerns about consumer debt and responsible lending practices are driving calls for increased regulation. In the UK, for example, the Financial Conduct Authority (FCA) is implementing new rules to ensure BNPL providers conduct thorough affordability checks and provide clear information to consumers. Similar regulatory scrutiny is expected in other European countries.
Finding the Best Mobile Phone Deals in 2026
While exploring flexible payment options, it’s also wise to shop around for the best mobile phone deals. Here’s a snapshot of some competitive offers currently available (as of early 2026):
| Offer | Cost | Data & Minutes |
|---|---|---|
| Creami EXTRA WOW 50 (PosteMobile) | €4.95/month | Unlimited minutes & SMS + 50GB 4G |
| Very 4.99 (Very Mobile) | €4.99/month | Unlimited minutes & SMS + 150GB 5G |
| ho. 5.95 (ho. Mobile) | €5.95/month | Unlimited minutes & SMS + 150GB 4G |
| 5.99 200GB Limited Edition (Kena Mobile) | €5.99/month | Unlimited minutes & 200 SMS + 200GB 5G |
| CoopVoce EVO 200 | €6.90/month | Unlimited minutes & 1000 SMS + 200GB 4G+ |
These deals demonstrate that affordable mobile plans with generous data allowances are readily available. Comparing options using a service like SOStariffe.it can help consumers find the best fit for their needs.
Future Trends to Watch
- Increased Personalization: BNPL providers will leverage data analytics to offer more personalized payment plans and recommendations.
- Integration with Loyalty Programs: Expect to see more BNPL services integrated with retailer loyalty programs, offering additional rewards and benefits.
- Expansion into New Sectors: BNPL is likely to expand beyond retail into areas like healthcare, education, and travel.
- The Rise of ‘Embedded Finance’: BNPL options will become increasingly embedded within other apps and platforms, making it even easier for consumers to access flexible payment solutions.
- Greater Focus on Financial Wellness: BNPL providers will prioritize financial wellness by offering tools and resources to help consumers manage their spending and avoid debt.
Did you know?
The BNPL market is projected to reach over $3.1 trillion globally by 2030, according to Grand View Research.
Pro Tip:
Always read the fine print before using a BNPL service. Understand the fees, interest rates, and repayment terms to avoid unexpected costs.
FAQ
- What is BNPL? Buy Now, Pay Later (BNPL) allows you to split purchases into installments, often interest-free.
- Does using BNPL affect my credit score? Typically, a ‘soft’ credit check is performed, which doesn’t impact your score. However, missed payments can negatively affect your credit.
- Is BNPL safe? Reputable BNPL providers use secure payment technology and protect your financial information.
- What happens if I miss a payment? You may be charged a late fee, and your credit score could be affected.
Ready to explore your mobile options? Compare mobile phone plans today!
