If you vend in Europe, you can utilize the Klarna payment solution in your shop — a versatile payment method which provides your clients an option to pay for their purchase:
- Immediately or later
- in full or in installments.
Please bear in mind that when customers opt for Klarna as the payment option, they can solely transact with the domestic currency. For instance, purchasers from Sweden can solely pay in Swedish kroner.
In outlet, Klarna is configured through Stripe, a swift and reliable payment portal that enables you to receive a variety of payment methods from all around the globe including credit and debit cards, mobile wallets, and dozens of other preferences your customers favor.
Table of contents
Prerequisites for utilizing Klarna
Before configuring Klarna, ensure that your store satisfies the following prerequisites:
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Regions: Klarna is accessible as the payment selection at checkout for consumers from Austria, Belgium, Denmark, Finland, Germany, Italy, Netherlands, Norway, Spain, Sweden, and United Kingdom.
Payment selections that Klarna offers are dependent on the consumer’s location. You can verify Klarna documentation to understand Klarna’s features and country availability.
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Currencies: Klarna collaborates with Euro, Swedish Krona, Norwegian Krone, Danish Krone, and British Pound. You can alter your shop currency from the shop admin, in Settings → General → Regional Settings → Currency.
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Product categories: By enabling Klarna with Stripe, you are agreeing to Klarna Merchant Services Agreement and verifying that your business doesn’t operate within Klarna Restricted Business Categories. This incorporates travel (including travel agencies, car rentals, and lodging), ticketing (including event tickets), reservation services, digital goods and services, marketplaces, and others.
Klarna also provides Ethical guidelines for merchants (pdf) which outlines the company's ethical standards. Among restricted items are alcoholic beverages, items or services intended to cause harm, injury, or suffering to humans or animals, products and services (e.g. fireworks, prescription drugs, weapons, and armaments) provided without proper licenses, adult, sexual, or pornographic items and services, including live webcams, electronic cigarettes (including e-liquid), etc.
- Legal pages: Prior to initiating live transactions with Klarna, ensure to revise your Terms and Conditions and Privacy Policy in accordance with Klarna Data Protection and Privacy Requirement.
Configuring Klarna
To facilitate Klarna transactions, you can easily integrate the Klarna payment method into your Stripe account linked to your shop. If you don’t possess a Stripe account, you can establish one swiftly and effortlessly.
To accept payments in your online boutique via Klarna:
- From your shop admin, navigate to Payment.
- Scroll down and Select Payment Method → Klarna (via Stripe).
- Tap Connect Klarna. You’ll be directed to the Stripe website where you can log into your existing Stripe account or create a new one.
If creating a new Stripe account, you’ll be prompted to input business information before Stripe connects to your shop. Following this, you will be redirected back to your shop.
If your Stripe account is already linked to your shop, simply log into your Stripe account and the Klarna payment method will be incorporated into your shop. Subsequently, you'll return to your shop. - Ensure that the Klarna payment method is activated within your Stripe account. To verify, click on the Manage account button within your shop or access your Stripe Dashboard:
Within your Stripe Dashboard, proceed to Settings → Payment Methods and locate the Klarna method. If you encounter Activate beside the Klarna method, click it and input any additional required information. Alternatively, you may see the Request access button, select it to activate Klarna:
The Klarna Merchant Services Agreement will appear, requiring your agreement by clicking Confirm.
Stripe may request additional information regarding your business to facilitate Klarna payments:
Select Provide info and then in the pop-up window, click on settings. You will be directed to Stripe’s Settings page where you’ll need to provide business information.
For inquiries concerning payment method activation within your Stripe account, contact Stripe’s support for further assistance. - Within the Appearance options section, toggle settings to enable specific payment method types at checkout. To customize the payment title at checkout, select Edit name for payment option. For example, modify Pay later to Buy Now, Pay Later.
- For shops catering to clientele from Italy and Spain. Activate the Klarna payment method availability for Italy and Spain toggle. This allows customers from Italy and Spain to choose between “Pay now” and “Slice it” payment options at checkout.
Note: Due to Klarna constraints, “Pay later” will not be available for these customers if the toggle is inactive. Failure to activate the toggle will render Klarna inaccessible for Spanish and Italian shoppers. - (optional) For multilingual sites, translate the payment option title.
- (optional) Within the Payment instructions for customers field, provide a description of the Klarna payment method for your customers, which will be displayed during checkout. For instance, elucidate the flexibility of delayed payment offered by Klarna to your buyers.
- (optional) Select Limit availability by shipping method to restrict the Klarna payment option to specific shipping or delivery methods.
That’s all. You can now accept payments in your online shop via Klarna:
Acknowledging Klarna payments
Following activation of Klarna in your webstore, your customers will have the option to select one of three Klarna payment methods at checkout:
- Pay now
- Pay later
- Slice it (also known as Installments).
These various payment options enable customers to pay immediately, via invoice, or in installments using direct debit or credit card.
Please be aware that when customers opt for Klarna as the payment method, they can only transact with the local currency. For instance, purchasers from Germany can only pay in Euros.
- The Klarna Pay Now method allows customers to settle the order using their online banking details. Should customers select this option, they must input the billing address on your shop checkout page. Depending on the location, additional information may be required. After inputting the required information and clicking Continue, customers will be redirected to the Klarna website to complete the payment.
- The Klarna Pay Later method permits customers to place an order and defer payment for 30 days without incurring any fees. Upon order placement, customers receive a bill from Klarna. Regardless of when payment is made, Klarna will cover the upfront cost of the order in full. To gain deeper insight into the Pay later method, view this video Pay Later (30 days).
- The Klarna Slice it (Installments) method allows customers to pay in 4 interest-free installments. When authorizing payment, Klarna provides customers with a payment plan. For example, if a customer purchases an item from your shop for €120, they would pay €30 every 2 weeks. Here’s a brief video Pay in 4 interest-free installments with Slice it.
IMPORTANT:
For customers from the US, orders paid with Klarna will have a Pending Payment status for up to 24 hours from creation. Once the payment is confirmed and funds are guaranteed, the order status automatically changes to Paid. In other regions, the payment status of the order is updated instantly.
You can always ascertain the payment method used for an order by viewing the order details in your shop admin, under My Sales → Orders.
Processing orders fulfilled with Klarna
Klarna mandates that merchants dispatch the order within 28 days of placement. Failure to do so will result in Klarna recognizing the order as outstanding and initiating an automatic refund.
To prevent a refund, ensure the item is shipped within 28 days and update the status to Shipped or Delivered.