The retailer is the first of the traditional ‘big four’ supermarkets, made up of Tesco, Asda and Morrisons, to welcome buy now, pay later in its online stores.
It has introduced Klarna, which has three payment options:
- Pay the outstanding balance within 30 days
- Split the purchase into three monthly payments within 60 days
- Use your Klarna account to pay for the goods in full
Payments with the service can only be made for products on its Argos, Habitat and Tu Clothing lines, as well as Sainsbury’s general merchandise items online.
The supermarket told YourMoney.com that there are no plans to roll the service out to pay for groceries online.
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For Nectar cardholders, as long your card is linked to your Argos account you will earn Nectar points on purchases as usual.
Over 20 million Brits use Klarna
David Sykes, Klarna’s chief commercial officer, said: “More than 20 million Brits already use Klarna, and now they can enjoy our flexible payment options at more of their favourite stores.
“Argos, Habitat, and Tu are British icons known for reliability and value, making Klarna’s interest-free payment solutions a seamless fit.
“We’re super excited for this first step in our partnership with Sainsbury’s.”
The move follows the number of customers using buy now, pay later schemes skyrocketing in the last two years.
Nearly half of UK adults (48%) used the payment method in 2023, adding up to an expenditure of £16.8bn – that’s up 12.8% on the year before.
So far in 2024, the total spend on buy now, pay later has already reached £30bn, according to Klarna.
Here are four buy now, pay later tips for you to consider before opening your account, from credit score company Loqbox.
Four buy now, pay later tips
1) BNPL is not ‘free money’
It’s credit, so you need to manage repayments responsibly.
2) Build up a savings buffer to make repayments
The key to keeping a good credit score and making repayments on time is to make sure you have enough money in your bank account to cover what’s due.
3) Check the T&Cs of your credit agreement
Yes, they’re boring to read, but don’t skip the T&Cs. While many providers will offer interest-free BNPL, check the interest or APR on any late payment fees you may be subject to.
4) If you miss a repayment, don’t panic – help is at hand
You should always contact the BNPL provider as soon as you can to explain the situation and see if it can work with you to arrange an alternative payment date and avoid late payment fees.
Related: GUIDE: Everything you need to know about Buy Now, Pay Later
