Klarna: A Guide

Klarna is a Swedish fintech company that provides Buy Now, Pay Later (BNPL) services and various other payment options. By integrating Klarna, merchants can offer customers flexible payment solutions, increasing conversion rates and customer satisfaction. Klarna’s payment methods cater to different consumer preferences, making it a popular alternative to traditional credit cards.

For details about on-site messaging implementation, see Klarna OSM Integration.

Klarna provides shoppers with multiple payment options to offer at checkout:

Pay in 4 (Interest-Free Instalments)
- Shoppers split the total purchase amount into four equal payments.
- The first payment is made at checkout, with the remaining three deducted every two weeks.
- No interest or fees if payments are made on time.
Pay Later (Invoice-Based Payment)
- Shoppers receive the product before making a payment.
- They have 14–30 days to complete the payment.
- Interest-free if paid within the set period.
Pay Now (Instant Full Payment)
- Shoppers pay the full amount immediately using a linked debit card, credit card, or bank transfer.
- This is Klarna’s simplest payment method, functioning similarly to standard checkout transactions.
Financing (Long-Term Payment Plans)
- Shoppers can spread the cost of a purchase over 6 to 36 months.
- This works like a personal loan, with interest rates depending on Klarna’s assessment.
- Requires a hard credit check, which may impact the customer’s credit score.

Integration with Klarna can offer the following advantages:

Higher Conversion Rates – Offering BNPL options reduces cart abandonment and increases completed sales.
Increased Average Order Value (AOV) – Shoppers tend to spend more per transaction when given flexible payment options.
Risk-Free Payments for Merchants – Klarna assumes full financial risk, ensuring that merchants receive payment upfront.
No Interest on Short-Term Plans – "Pay in 4" and "Pay Later" options are interest-free, making them attractive to customers.
No Hard Credit Checks for Short-Term BNPL – Klarna conducts only soft credit checks for short-term options, making it more accessible.
Global Availability – Klarna operates in multiple markets, including the U.S., U.K., Sweden, Germany, Australia, and more.
Mobile & In-App Shopping – Shoppers can shop and manage their payments directly through Klarna’s mobile app.
Buyer Protection & Dispute Resolution – Klarna offers protection against fraud and resolves disputes on behalf of merchants and consumers.

While Klarna provides benefits, merchants should also be aware of potential drawbacks:

Potential Considerations

Late Fees for Shoppers – If a Shoppers misses a payment, Klarna may charge late fees or restrict their account.
Risk of Debt Accumulation – BNPL services can encourage overspending, leading to financial difficulties for some consumers.
Hard Credit Checks for Financing – Long-term financing requires a hard credit check, which may deter some shoppers.

Klarna offers different payment methods per country.

Country	Klarna Category	Payment Method
Austria	Pay later	Pay Later 30 days
Austria	Financing	Term Loan Financing 6,12,24,36 m
Austria	Pay now	Pay by Card
Austria	Pay now	Klarna Bank Transfer
Austria	Pay now	Direct Debit
Austria	Pay now	Klarna Bank Account
Belgium	Pay later	Pay Later 30 days
Belgium	Pay now	Klarna Bank Transfer
Belgium	Pay now	Pay by Card
Germany	Pay later	Pay Later 30 days
Germany	Financing	Term Loan Financing 6,12,24,36 m
Germany	Pay now	Pay by Card
Germany	Pay now	Klarna Bank Transfer
Germany	Pay now	Klarna Bank Account
Germany	Pay now	Direct Debit
Netherlands	Pay later	Pay Later 30 days
Netherlands	Pay later	Pay in 3
Netherlands	Pay now	Pay by Card
Netherlands	Pay now	Klarna Bank Transfer
Netherlands	Pay now	Direct Debit
Denmark	Pay later	Pay Later 30 days
Denmark	Pay later	Pay in 3
Denmark	Pay now	Pay by Card
Finland	Pay later	Pay Later 30 days
Finland	Financing	Term Loan Financing 6,12,24,36 m
Finland	Financing	Instalments 6,12,24,36 m
Finland	Pay now	Pay by Card
Finland	Pay now	Klarna Bank Transfer
Norway	Pay later	Pay Later 30 days
Norway	Financing	Term Loan Financing 6,12, 24,36 m
Norway	Pay now	Pay by Card
Sweden	Pay later	Pay Later 30 days
Sweden	Pay later	Pay Later 60 days
Sweden	Financing	Instalments 3,6,12,24,36 m
Sweden	Financing	Term Loan Financing 6,12,24,36 m
Sweden	Pay now	Pay by Card
Sweden	Pay now	Klarna Bank Transfer
Sweden	Pay now	Direct Debit
Sweden	Pay now	Swish
Spain	Pay later	Pay later 30 days
Spain	Pay later	Pay in 3
Spain	Pay now	Pay by Card
Spain	Pay now	Klarna Bank Account
France	Pay later	Pay later 30 days
France	Pay later	Pay in 3
France	Pay now	Pay by Card
France	Pay now	Klarna Bank Account
Italy	Pay later	Pay later 30 days
Italy	Pay later	Pay in 3
Italy	Pay now	Pay by Card
Italy	Pay now	Klarna Bank Account
United Kingdom	Pay later	Pay Later 30 days
United Kingdom	Pay later	Pay in 3
United Kingdom	Pay now	Pay by Card
United Kingdom	Pay now	Klarna Bank Transfer
United States	Pay later	Pay in 4
United States	Pay later	Pay Later 30 days
United States	Financing	Term Loan Financing 3, 6, 12, 18, 24 m
United States	Pay now	Pay by Card
United States	Pay now	Card
Canada	Pay later	Pay in 4
Canada	Financing	Term Loan Financing 6
Canada	Pay now	Pay by Card
Australia	Pay later	Pay in 4
Australia	Pay now	Card

Klarna has different transaction limits per country as described in the following table.

Country	Payment Method	Limit
United Kingdom	Pay Later (30 days)	£1 - £800
	Pay in 3	£35 - £1000
Australia	Pay in 4	$35 - $1500
Germany	Pay Later (14 days)	€1 - €2,500
	Pay in x months	€35 - €3,000
	Direct Bank Transfer	€1 - €10,000
Austria	Pay in 14 days	€1 - €5,000
	Direct Bank Transfer	€1 - €10,000
Sweden	Pay Later (30 days)	1 SEK - 100,000 SEK
	Pay in x months	39 SEK - 100,000 SEK
	Direct Bank Transfer	1 SEK - 100,000 SEK
Denmark	Pay Later (14 days)	1 DKK - 5,000 DKK
	Pay in x months	39 EUR - 30,000 DKK
Finland	Pay Later (14 days)	€1 - €3,000
	Pay in x months	€5 - €3,000
	Direct Bank Transfer	€1 - €10,000
Norway	Pay Later (14 days)	1 NOK - 75,000 NOK
	Pay in x months	1 NOK - 75,000 NOK
Italy	Pay in 3	€35 - €1000
	Direct Bank Transfer	€1 - €10,000
Netherland	Pay Later (14 days)	€1 - €1,500
	Direct Bank Transfer	€1 - €15,000
Spain	Pay in 3	€35 - €1000
	Direct Bank Transfer	€1 - €10,000
Belgium	Pay Later (21 days)	€1 - €1,500
	Direct Bank Transfer	€1 - €15,000
United States	Pay in 4	$0 - $2500
Canada	Pay in 4	35 CAD – 2500 CAD

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Klarna: A Guide

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