People can use Klarna to pay for household repairs under new partnership

People could be using buy now pay later (BNPL) to fix a leaky shower or have their boiler repaired under a partnership involving Klarna.

The BNPL provider is working with small business platform Xero so that smaller firms can accept payments from people wanting to spread their costs.

Klarna said it checks a consumer’s eligibility before approving each purchase and gives reminders to help shoppers keep on top of their payments.

David Sykes, chief commercial officer at Klarna, said: “Klarna’s flexible payment options are typically associated with clothes and shoes but that has been changing for a long time.

“This partnership brings Klarna’s flexible payment options to micro businesses of all kinds so business owners can get paid on time and their customers can choose how and when to pay.

“This includes businesses where gardeners and landscaping services using Xero can now offer a Klarna BNPL payment option, plumbers and heating engineers using Xero can fix their customers’ boilers and let them spread the cost while small businesses involved in the construction industry could spread the cost of smaller projects over three interest-free instalments.”

Writing on X, formerly Twitter, consumer champion Martin Lewis said: “Fair’s fair @klarna has today announced it’ll start allowing people to interest free spread payments for plumbers and car repairs. I think that’s actually useful for some (if done carefully) as these are often unexpected necessities. A far more appropriate purpose (still needs regulation tho).”