Fancy buying online, spreading your payment over three instalments, and paying no interest on the credit? Then welcome to Klarna, which has launched in Ireland.

The service provided by the Swedish bank, payments and shopping platform is a virtual debit card that comes in the form of an app. Customers can use it to shop online or in store and can split their payments into three interest-free and fee-free monthly payments.

Klarna can only be used with retailers who sign up for the service.

Ireland head of business development Colin Creagh said: "It’s an exciting moment for us as we look to unlock growth opportunities for our partners and expand our retailer relationships to give consumers better choices and a more sustainable way to pay.”

Klarna’s says its service is used by 90 million people worldwide, and the company says it is riding a trend away costly credit cards and towards debit cards and payments. Spending via debit cards grew three times faster than credit cards between 2015 and 2020.

In Association with

The company charges retailers to offer the service, so consumers don't pay more than the price of the original purchase.

Klarna's global retail partners include H&M,  IKEA, Expedia, Samsung, ASOS, Ralph Lauren and  Nike.

Klarna has been described as a 'Trojan horse for millennials’ finances'  by critics, who say the company is exploiting the vulnerable, allowing shoppers to buy on Klarna credit but not stopping them overspending.

In the UK, where Klarna is well-established, it is estimated that two fifths of people who use BNPL aren’t aware that missed payments can affect their credit rating. Crtitics also note that nearly half of BNPL users have missed a repayment.

Klarna’s launch in Ireland centred on a function at 25 Fitzwilliam Place attended by a variety of Influencers.

According to the PR blurb: “The launch was full of Instagrammable moments, such as manicures by FeelUnique and a Gamestop gaming station with early access to Xbox Forza Horizon 5.”

Vogue Williams (pictured) presided over a DJ set before guests tucked into a 3-course dinner and “immersive retail experience”.

In December 2020, the UK’s Advertising Standards Authority ordered Klarna to remove ads promoted by Instagram influencers during lockdown.

The regulator stated: “In the context of the challenging circumstances caused by the lockdown , including impacts on people’s financial and mental health, the ads irresponsibly encouraged the use of credit to improve people’s mood.”