If you sell in Europe and the USA or plan to expand your business, you can use the Klarna payment solution in your store — a flexible payment method which gives your customers a choice to pay for their order immediately or later, in full or in installments.

Offering the various payment options in your online store can help you get more clients and increase your checkout conversions.

In the store control panel, Klarna is set up through Stripe, a fast and trustworthy payment gateway that allows you to receive a variety of payment methods from all over the world including credit and debit cards, mobile wallets, and dozens of other options your customers prefer.

Requirements

• Regions. Klarna is available as the payment option at checkout for customers from Austria, Denmark, Finland, Germany, The Netherlands, Norway, Sweden, the United Kingdom, and the USA.
• Currencies. Klarna works with Euro, Sweden Krona, Norwegian Krone, Danish Krone, British Pound and USD. To change your store currency, in the store control panel, click Settings → General → Regional Settings → Currency.
• Product Categories. By enabling Klarna with Stripe, you are accepting Klarna Merchant Services Agreement and confirm that your business doesn’t operate within Klarna Restricted Business Categories. That includes travel (including travel agents, car rental, and hotels), ticketing (including event tickets), booking services, digital goods and services, marketplaces and others. Klarna also have Ethical instructions for merchants (pdf) which states the company's ethical standards. Among restricted are alcohol products; products or services, which is intended to cause danger, injury or suffering to humans or animals; products and services (e.g. fireworks, prescription drugs, weapons and armaments) provided without appropriate licenses; adult, sexual or pornographic products and services, including live web cam; electronic cigarettes (including e-liquid), etc.
• Legal Pages. Before you start accepting live payments with Klarna, make sure to update your Terms and Conditions and Privacy Policy according to Klarna Data Protection and Privacy Requirement.

Configure Klarna

To accept Klarna payments, you can simply add Klarna payment method in your Stripe account connected to your store. If you don’t have a Stripe account, you can create one fast and easily.

To accept payments in your online shop via Klarna:

1. In the side panel, click Sell Online, and then click Manage Store.
2. Click Payment, scroll to Choose Payment Method, and click Klarna (via Stripe).
3. Click Connect Klarna. You’ll be redirected to the Stripe website where you can login into your existing Stripe account or create a new one.
   If you create a new Stripe account, you’ll need to fill in the information about your business and then Stripe will connect to your store. After that you will be redirected to your store. If you already connected your Stripe account to your store, you need to log in to your Stripe account and the Klarna payment method will be added to your store. After that you will be redirected to your store.
4. Make sure that Klarna payment method is activated in your Stripe account. To check, click Manage account in the store control panel to open your Stripe Dashboard.
   
   On your Stripe Dashboard, go to Settings → Payment Methods and find the Klarna method. If you see Activate next to the Klarna method, click on it and fill in the additional information. You may also see the Request access button, click on it to activate Klarna.
   The Klarna Merchant Services Agreement will pop up and you have to agree with it by clicking Confirm. Stripe may ask you to provide more information about your business to accept payments with Klarna. Click Provide info and in the popped-up window click on settings. You will be redirected to Stripe’s Settings page where you’ll need to fill in the information about your business.

5. After activating Klarna payment methods, make sure that the Enable this payment method at checkout setting in your store control panel is turned on to display Klarna payment options at checkout.
6. In the Payment instructions for customers field you can add a description of the Klarna payment method for your customers, it will appear at the checkout. For example, describe the flexibility of delayed payment that Klarna provides to your buyers.

Accept Klarna Payments

After you enable Klarna in your store, your customers will be able to choose one of three Klarna payment options at your store checkout: Klarna Pay now, Klarna Pay later or Klarna Slice it. These different payment options let customers pay immediately, by invoice, or through installments using direct debit or credit card.

• Klarna Pay Now. Klarna Pay Now method lets customers pay for the order using their online banking details. If your customers choose to pay now, they have to fill in the billing address on your store checkout page. Depending on the location customers may need to fill in additional information. After entering information and clicking Continue, your customers will be redirected to the Klarna website to proceed with payment.
• Klarna Pay Later. Klarna Pay Later allows your customers to order first and pay 30 days after purchase without any fees. After placing the order, customers will get a bill from Klarna. No matter when your customers decide to pay, Klarna will pay for the order up front and in full.
• Klarna Slice It. Your customers can pay in 4 interest-free installments with the Karna Slice it payment option. In that case while authorizing the payment, Klarna will show your customers their payment plan. For example, if they bought an item in your shop that costs $120, they will have to pay $30 every 2 weeks. After completing the order, customers will get an email with a payment link. Once Klarna collect their first installment, you will be paid by Klarna for the order up front and in full.

For customers from the UK and U.S. the orders paid with Klarna have Awaiting Payment status for up to 24 hours from their creation. Once the charge is confirmed and the funds are guaranteed, the order status automatically changes to Paid. In other countries the payment status of the order gets updated immediately.

You can always check what payment method has been used for an order by viewing an order’s details in your store control panel, My Sales → Orders.