Klarna breaks up gas prices
Future. Klarna — the “buy now, pay later” platform (BNPL)— is trying to make gassing up your car less stressful with a new partnership with Texaco and Chevron. If basic necessities, such as gas, could go the “pay in 4” route, it may only be a matter of time until bigger purchases such as rent, travel, or health insurance follow a similar model.
Klarna wants you to fill the tank without breaking the bank.
- The pay in 4 company is partnering with Texaco and Chevron to help consumers pay off a fillup over the course of six weeks.
- To use the functionality, users need to find a participating gas station on the Klarna app, create a $75 digital gift card, and then use it to pay.
- Any unused funds will be reimbursed back to the user.
Klarna’s integration with Texaco and Chevron comes on the heels of rising gas prices around the U.S., with the average gallon costing $4, but reaching $6 in California. Klarna hopes it can ease the burden.
But the BNPL arrangements are also putting people in debt. A report by DebtHammer.org found that nearly a third of customers that use BNPL platforms have struggled to keep up with payments. If you’re filling your tank at least once a week, keeping track of those payments could get confusing… and just as expensive as paying all at once.