Gas prices have rocketed to record highs this month. So high, people are now paying in installments.
Klarna, a buy now, pay later service, has partnered with Texaco and Chevron to let customers pay for gas in installments.
The move is not a response to recent gas prices, the company said in a statement. “We have been working with Chevron since 2021, so this is not new and has no connection to the current global geopolitical situation.”
Prices have risen quickly, and experts say they won’t come down until Americans reduce their demand for gasoline. That has begun to happen, with government statistics showing Americans using less gasoline amid the current price spike.
But, since Russia’s invasion of Ukraine roiled world oil markets, gas prices remain near record highs coast-to-coast. That has left more Americans using Klarna’s unique payment system. The system allows users to pay for their gas in four installments, stretching as long as six weeks.
The company performs a so-called “soft credit check,” which doesn’t impact a customer’s credit score, before approving four payment transactions. But, the company tells the Washington Post, it “does not report account information or repayment histories to any of the nationwide credit bureaus.”
Instead, Klarna cuts off users’ access to the service if they miss a payment.
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