Behavioral Science For Brands: Leveraging behavioral science in brand marketing. How Klarna uses present bias and temporal reframing to make shopping feel irresistible
Aug 27, 2025
Dive into the psychology behind Klarna's Buy Now, Pay Later model, which capitalizes on present bias to enhance online shopping. Discover how our evolutionary past influences decision-making, leading many to prefer immediate rewards over future savings. Learn about the impact of temporal reframing on how consumers perceive pricing, making costs feel more manageable. The discussion reveals costless pricing strategies that can elevate sales for brands of all sizes—turning the act of spending into an irresistible choice.
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Klarna's Origin Story
- Klarna began in 2005 in Sweden offering 'buy now, pay later' to let customers get products immediately and pay later.
- The founders pitched the idea in school and launched despite skepticism from banks and judges.
Present Bias Explains Payment Preferences
- Present bias makes people overweight immediate pleasure or pain compared with future outcomes.
- This explains why consumers prefer deferring payments even when it increases total cost.
Real-World Evidence From Sweden
- A 2006 Swedish field study with charity donors showed asking for payment in two months increased donations by 32%.
- Donors who deferred payment gave more than those asked to give immediately.
