Asalam alaikum, I have been putting this idea off as I am not sure. I want to sell services and products on my shopify account, I thought about using Klarna buy in 3. Where the buyer will spread the cost over 3 months interest free. However if they miss the 3 month period then they will be liable for interest. Is this permissable? Are there any other alternatives?
Wa alaykum salaam,
The concern I have with Klarna is how they make money. If they are providing an interest free financing to the customer but profiting through other means, then they are still profiting from an interest free loan in a tripartite structure of Hawalah. That would be a form of Riba, as they are lending and benefiting through the loan contractually by making their income through you, and not the borrower, in one arrangement.
Thank you for your reply, this has made me change my plans and inshallah for the better.