Many online sellers use payment processors like PayPal, 2Checkout, or the one that comes with the platform they use to sell.

For example, if you sell on Amazon, you don’t have to worry about any kind of payment processor. The problem is that with these companies, you can’t set your own preferences.

Klarna can make a difference for your business in this way, but only if you run your own online store. Start with the Klarna Review!

In this Klarna review, we’ll look more closely at this company to find out what services it offers, how much its fees are, if it’s safe, and a lot more.

Klarna Review A Payment Method For Checkout Just For You
Klarna Review A Payment Method For Checkout Just For You

Just who is Klarna?

Klarna is a bank, not just a company that helps people pay for things. It is also a company that gives online businesses a safe way to check out and online shoppers a way to pay.

With this system, online business owners can accept payments, and customers can pay without giving the merchant their credit card numbers. This adds a layer of security to their purchases and identities.

It’s different because merchants who use Klarna can charge their customers with any kind of payment provider. A customer only needs to give his email address and zip code to finish the purchase.

With Klarna, a merchant can accept online payments, charge the customer when the item is delivered (this is called “cash on delivery” or “COD”), or charge the customer in installments.

Klarna is a program that lets people get loans, and it is run by WebBank.

Background on Klarna

No one really doubts PayPal, eBay, or Amazon these days. Even though not all of these are payment processing companies, shoppers feel safe giving their credit card information to these online stores.

Klarna has been in the business for a while, but it is not as old as the “big three.” Klarna was started in Sweden in 2005. The company’s goal was to make online payments easier and safer.

Klarna is now one of the most important financial companies in Europe. It works with 60 million customers around the world, and more than 130,000 businesses in 14 countries accept Klarna as a way to pay.

How do you use Klarna?

Most ways to pay online work like this:

  • The customer starts an account.
  • The customer must add a credit card or bank account after signing up.
  • If a bank is used, the customer has to put money into the payment solution account.
  • If not, the customer can buy something and sign in.
  • Then he will have to pay for what he bought.

This is not how Klarna works. Instead, it turned the process around in some way. You just need to sign up for Klarna and add your social security number.

If you pass the micro-credit check and are approved for a Klarna account, you can start using it.

When you’re done shopping and on the checkout page, you just use your email address and postal code to pay.

Here’s where the magic starts to happen. Klarna pays the store where you bought something. Your credit card or bank information will never be seen by the merchant. The seller won’t send your item, so you’ll have to pay Klarna what you owe.

Klarna will send you an invoice within 14 days, on average. This bill can be paid with a credit card, a bank transfer, or a check.

You can also add a method of payment to your Klarna account AFTER you have made the purchase. But you have to do this within 30 minutes after Klarna has paid for the online purchase you made. If you don’t, you will get a bill.

This tells us that Klarna is a payment system that was made from a credit system. The best thing about this is that people will always feel safe when they buy things online. Klarna is the only company that would ever know about their money.

Merchants can expect people to buy things based on how they feel. When people shop online, they are more likely to buy too soon if they don’t have to pay right away.

Klarna also has a program that lets you buy now and pay later. Plus, the customer can choose to pay in four equal installments with no interest.

Klarna is a global brand that is used by H&M, Adidas, and IKEA, among other big companies in different industries.

Klarna Mobile App

Klarna wants to make use of the fact that most people shop on their phones these days. Because of this, there is an app that lets people get to their Klarna accounts right away.

If you have the app, you can add expensive things that you don’t want to buy right now to a “wish list.” If the price of the item ever goes down, the Klarna app will let you know.

It is also the app that lets you buy something now and pay for it in four equal payments later. This is because Klarna will check your credit as soon as you download the app and sign in.

You can take part in the buy now, pay later program if you have good credit. You can buy from any online store when you have Klarna.

Also, the Klarna app lets you keep track of all your purchases and manage them in one place. Most of the time, if you buy something on Amazon, your Amazon account will only show you the things you bought on Amazon. PayPal works the same way.

You can pay any retailer with Klarna, so you can now go to a dashboard that shows you ALL of your online purchases.

What’s going on?

Klarna is a bank. It’s like if a bank like Bank of America gave you a credit card. Every time you use that credit card, Bank of America will keep track of what you did.

Klarna works the same way, but its app and pay later program have more bells and whistles.

You can also make a one-time virtual credit card that you can use to buy something and then pay for in four installments through the app. This Klarna payment system doesn’t charge any fees or interest.

You can also set up a payment plan for your purchases through the app. You can set up a payment schedule that works for your budget. But, just like with a bank, you have to pay the bill when it’s due.

If you schedule a payment for after your due date, you will be charged interest rates.

Program to protect buyers

Klarna has what’s called “zero tolerance” for fraud. This means that the consumer is protected if a payment or purchase was made or paid for on his account without his permission.

If you find out this happened, you must contact Klarna customer service within 60 days of when the purchase shows up in your app, on your credit card statement, or on your bank statement. You should also file a claim within 30 days of Klarna telling you that the payment is due.

This is not the only way that buyers are protected here. If your purchase was not sent to you, you can file a dispute with Klarna. But you must first check with the seller to see if the item was sent. You can ask Klarna for help if you still don’t have the item and your payment is due.

The online store’s policy will be followed for returns and refunds. Klarna also keeps its sellers safe. If you’re the buyer, you have to show that you sent the item back to the seller.

Klarna will ask the seller if he got the item that was sent back. Klarna will handle the refund if the seller confirms that this is true and agrees to it.

All refunds will be sent back to you in the same way you paid. If you paid with a bank account, Klarna would put the refund back into the same bank account. If you paid with a card, Klarna would put the money back on that card.

A customer needs to know some important facts about the buyer protection program in order to be fully covered by it.

Klarna will pay you back if you don’t get the goods you paid for. Even if the payment is due soon, you don’t have to pay if you call customer service and ask to put off the payment.

If you’ve already paid Klarna back for the money they loaned you but still don’t have the item, you’ll need to get in touch with the seller first. Next, get in touch with Klarna, and they will look into it. If it turns out that the package was lost, Klarna will give you a refund.

Here’s more information about buyer protection:

  • You can get your money back for things that don’t work.
  • You can cancel your order, but you have to send the items back to the seller.
  • You have 14 days from the date of your purchase or 14 days after you get your goods to change your mind.
  • If the goods you got don’t match what was advertised, you can ask for a refund or get out of the deal.
  • The buyer protection program only covers purchases of physical goods.

Here are some things that the buyer protection program does not cover:

  • Digital goods like eBooks or online courses
  • Made-to-order goods
  • Digital coins are a type of cash.
  • Illegal items
  • Items that go against Klarna’s policy on ethics

Merchant Payment Solutions

Klarna has a lot of different features that online sellers can use. Here are the ones that are most important.


This is the Klarna checkout system that you can add to your website so that you can accept Klarna payments. It finds repeat customers right away, so the system can automatically fill in their shipping information when they check out. This makes the checkout process go smoothly.

Klarna also makes sure you get paid quickly because it finances the payment. If it does, your sale is guaranteed.

Coming Up

This is something you can use in your storefront business. The customer will tell you that he will pay with Klarna instead of cash.

If people do this, they can pay even if they don’t have cash on hand. Klarna handles the financing, so even if the customer doesn’t have cash, you can still make a sale.

Klarna and the customer must now work out the money that the customer owes Klarna.

Cut It!

If you sell high-priced items, you will like this feature. With Slice It, your customers can buy expensive items right away, even if they don’t have any money. Then, Klarna will be paid back in installments.

The best part is that your customers don’t even need a Klarna account to buy something from you.

If your online store has Klarna, a customer will see that he can pay in installments with Klarna. If he wants to use it to pay, all he has to do is register it once.

If it works, Klarna will pay you the full price of the item and you can now ship it.

Insights for Merchants

If you use Klarna to get paid, you can also look at a dashboard.

You can see the following on this dashboard:

  • the amount of orders
  • Total sales average order value
  • Weekly sales
  • number of purchases made in parts

Here, you can see more business analytics. It can help you make business decisions that are smart. If you notice that more customers buy on Wednesdays, you might put more effort into marketing on that day.

You can see if your sales go up when people get paid or if people are more likely to buy if they have to pay in installments.

On-site Messaging

As a merchant, you will have a plugin that lets your customer or site visitor send you a message right on your site. It’s kind of like a live chat, so you don’t have to turn on another plugin just to get this feature.

With on-site messaging, you can answer all of your customers’ questions, which will make your conversion rate go up. You can even make a personalized offer if you know what your customers want.

You can also explain how Klarna works and let them know that Klarna will pay for their shopping purchases up front.

Platforms that were used

You can use Klarna in two different ways. The first way is to add the system straight to your website. The second way is to use platforms for online stores.

To use direct integration, you need to know a lot about computers. This means you need to know how to use computer languages like APK and SDK. You should also know what environment your website is running in, like Java, PHP, and more.

You need test credentials to start the direct integration. You will be asked to integrate Klarna into their own test environment.

If you pass, just follow the integration guide and see if the system works.

The other way is to use platforms that Klarna works with. Klarna works with Shopify, Magento, WooCommerce, and other platforms.

It’s easy to put together. Just have a Klarna account. Then, from your online store platform, you need to choose the Klarna plug-in. It can be downloaded and set up, and then it can be run.

Give your Klarna credentials when the app goes live, and the integration will be done. When you’re done, your customers will be able to see that you accept Klarna payments.

Klarna Fees and Prices

Klarna isn’t always free for merchants to use. The consumer doesn’t have to pay to use it, but the merchant does.

Since it is a global company, the prices and fees vary from country to country.

Klarna charges merchants a Transaction Fee and a Variable Fee in the United States. Depending on how the customer wants to pay for the purchase, these two may or may not apply.

  • Pay Later: If the customer wants to pay later, the merchant has to pay a transaction fee of $0.30 and a variable fee of 5.99% for the total cost of the transaction. If a customer says “pay later,” it means that they will pay in 30 days.
  • Slice It: If a customer slices the price and pays for it in installments, the transaction fee is also $0.30, but the variable fee is 3.29%.

If a customer pays in full, the business won’t have to pay any fees.

Users no longer have to pay interest if they pay within 14 to 30 days of the transaction date. If they choose to pay over time, they won’t have to pay any extra fees.

But if their payment is late, they will have to pay a late fee. This is how Klarna makes money from its customers, since Klarna paid for the purchase up front and needs the interest to cover these costs.

Klarna’s annual percentage rate (APR) for purchases is 18.9%. APR is short for Annual Percentage Rate. If you buy $100, the interest rate is $100 times 18.9%, which equals $18.9.

All together, you’ll pay $118.9. The interest is paid out over a year. So, if you pay in six months, you’ll only have to pay the original $100 plus $9.45.

You will also have to pay fees and charges for being late, which change from country to country.



Klarna is like a credit card, but there is no card to carry around. Depending on your credit history, you can only borrow a certain amount of money. Klarna can be used to buy things both online and in person, as long as the store accepts it as a payment method.

Overall, it gives both merchants and customers a new way to pay, since they both stand to gain a lot. For the merchants, the money will be sent to them right away. For the consumer, they have the freedom to choose how to pay that works best for their budget. I hope this review of Klarna was helpful! Want to find out more about online business? Read our articles down below.