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Understanding Klarna Payments
Understanding Klarna Payments

Learn more about Klarna before introducing it as a payment option to customers

Gemma avatar
Written by Gemma
Updated over 7 months ago

Please note: Online payments are available on the Lite plan or above. Klarna is only available if you are using Stripe as your payment provider.

By integrating your account with Stripe, you can offer your customers the option to spread the cost of payment over instalments through Klarna.

💡 Please be aware of Klarna's higher Stripe processing fees. To reduce the impact of the higher processing fee, you may wish to set custom rules to display Klarna only for transactions exceeding a specific amount.

This article covers:


Klarna Overview

Klarna belongs to the "Buy Now, Pay Later " payment family, offering four different payment options:

  1. Pay in 3 or 4 (instalments)

    • Your customers can pay in 3 or 4 interest-free payments

  2. Monthly instalments (financing)

    • Your customers can pay for the purchase over a longer term of up to 36 months, which might also include interest*

  3. Pay later

    • Your customers will pay for the purchase in a single payment in 30 days

  4. Pay now

    • Your customers pay immediately

Klarna will show one of the above options based on two factors:

  1. The transaction amount and

  2. Your customer's billing country.

* Financing is not available immediately. Please refer to Stripe's Klarna financing documentation for more information and guidance.


Processing fees

Stripe processing fees for Klarna are higher than card or Link transactions.

For example, UK businesses pay 4.99% + 35p per Klarna transaction for customers that have the UK as their billing country.


Restrictions and Additional Requirements

Some businesses will be prohibited from using Klarna as mentioned in Stripe's documentation: Prohibited and restricted businesses.

In addition to those listed, the following businesses are also prohibited:

  • Charities

  • Political organisations, parties, or initiatives

There are certain additional requirements that you will need to acknowledge when using Klarna via Stripe. You can find the full list of additional requirements on Stripe.


Klarna Branding

You must comply with Klarna's marketing compliance guides following the correct guidance for the country that you are operating and selling in.


​UK Specific Guidance

The Financial Conduct Authority (FCA) has regulations in place for advertising Klarna's Buy Now, Pay Later (BNPL) methods in the UK. To ensure compliance and avoid potential issues, it's essential to use messaging pre-approved by Klarna.

For your convenience, you can find all of Klarna's UK-approved messaging within their UK Financial Promotion Rules.


💬 Any questions or feedback? There are two ways to get in touch:

Thank you! 🕺


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