Klarna payments

Klarna is a global payment method that gives customers a range of payment options during checkout. These payment options enable customers to pay for purchases over time.

Paying with Klarna redirects customers to Klarna’s site, which displays payment options based on factors such as the customer’s currency, transaction amount, and the payment use case. After the customer selects a payment option, Klarna returns them to your site to complete the order. When the payment is accepted, you receive the entire order amount (minus fees) in your Stripe account. Klarna collects the initial payment from your customer and any future installment payments. If the customer can’t repay Klarna, Klarna takes loss liability.

Payment flow

Below is a demonstration of the Klarna payment flow from your checkout page:

Get started

To get started with Klarna:

1. Read the Klarna rules to ensure your business is eligible to accept Klarna payments. For example, Klarna doesn’t support B2B payments.

2. Refer to payment options to understand what payment options are available to your customers.

3. If you don’t already have a Stripe integration, create a Stripe-hosted page with Checkout, then start accepting Klarna payments.

   You can also use Checkout to embed a payment form on your site or build a customized checkout page with embedded components (such as the Payment Method Messaging Element). To build an advanced integration that handles complex payment flows, you can use Stripe Elements with the Payment Intents API.

4. Follow best practices, such as sending relevant data to Klarna about items in the shopping cart, to optimize conversion and cart size for Klarna payments.

Payment options

Depending on the customer’s currency and the transaction amount, Klarna can present customers with various payment options. Cart ranges and geographic availability for payment options are determined by Klarna and might change at their discretion. Regardless of the underlying payment option selected, Stripe makes the full amount of the funds (minus fees) available to you upfront and Klarna collects the purchase amount from your customer, who repays Klarna directly. The following table describes the payment options and the buyer countries that support each option for one-time and recurring payments¹.

Cross-border payments

The following table describes the requirements for using Klarna internationally. For example, a Swedish business can present in EUR to a buyer in Germany because they’re both in the European Economic Area (EEA). However, an Australian business must present in AUD, and can only accept payments from buyers in Australia.

Refunds

You can refund Klarna charges up to 180 days after the payment completes. Klarna cancels any remaining payments on a refunded charge and returns the already-paid amount to the customer. Refunds usually take 5-7 business days to complete, but might take longer depending on the customer’s financial institution and the type of purchase. Klarna supports full and partial refunds. You can also issue multiple partial refunds up to the amount of the original charge. Partial refunds update the Klarna order to reflect the new total amount.

• If the partial refund is greater than the remaining balance of the order, Klarna deducts the refund amount from the outstanding balance and returns the difference.
• If the partial refund is less than the remaining balance of the order, Klarna deducts the amount from the outstanding balance and spreads refunds evenly across the remaining payments.

Klarna doesn’t support refunding a payment when it has been escalated to a dispute. Learn more about responding to disputes.

Connect

A Connect platform can use Stripe Connect with Klarna to process connected account payments of all charge types.

Connected accounts with full Stripe Dashboard access

Connected accounts with access to the full Stripe Dashboard, including Standard accounts, can enable Klarna through their Dashboard. To check which accounts have enabled Klarna, use the capabilities hash in the accounts webhooks or APIs to see if the klarna_payments capability is set to active.

Connected accounts without full Stripe Dashboard access

To enable Klarna for connected accounts without full access to the Stripe Dashboard, including Express and Custom accounts, request the klarna_payments capability. Customers see the name of your connected account during checkout and in the Klarna app.

Buyer country filtering

Buyer country filtering applies when you enable a dynamic payment method on the Payment Element or Checkout Session. Klarna only displays as a payment method option if the buyer’s country is supported.

We determine the buyer’s country in the following priority order:

1. Shipping address country: The two-letter country code, not the full name of the country.
2. Geocoded country: The country based on the client-side IP address.