External payment methods & external checkouts

External payment methods and checkouts allow merchants to offer payment methods not available today as an inline experience with Klarna checkout.

When users choose an external payment method they will be redirected to a link provided by the merchant and operated by the merchant.

You can find the implementation guides and requirements for these two types of integrations below.

Note: If you are interested in adding an external payment method or external checkout, please reach out to your account manager to make sure it is included in the commercial contract and is approved before going live.

When the Checkout is loaded, you have the option to load external payment methods into Klarna Checkout. The customer will still fill out address information in Klarna Checkout, but when choosing an external payment method they will be redirected to the URL you have provided. The user will finalize the purchase at that page.

Note: You are responsible for the completion of the purchase flow when a user has chosen an External Payment Method including e.g. an order summary page, a order confirmation page and reconciliation of orders.

You need to utilize external_payment_method to make sure that they appear in all payment flows. You must add all necessary information, including information to be displayed in relation to the payment method and redirect URIs, in this object when loading Klarna Checkout.

Klarna Checkout will redirect the user to the added URI when they have selected the payment method and clicks “Continue”. You will have to integrate the purchase flow following this step to enable completion of an order.

Note: Integrating external payment methods requires additional integration work, since this payment method will be processed and finalized outside Klarna checkout. You will thus need to cater for some of the payment flows, both frontend and backend. As well as ensure that your checkout is compliant. See examples of additional integration steps below:

1. Since external payments take place outside Klarna checkout, no user data will be shared for this purchase to you, the merchant. Klarna has no involvement in the integration towards any third party provider.
2. You/the external payment method will need to cater for that so all relevant user data to finalize the purchase (e.g. address, name, etc.) is stored securely.
3. Please note that in the case of external payment methods, you or the third party provider will need to host your own pages to make the purchase flow compliant. Including e.g. order confirmation page, order summary page and buy button.
4. New backend integration towards the external payment method will be required.
5. Given that this is an external payment, Klarna’s buyer protection will not apply for your consumers. We advise that you mention that this is an external payment method in the payment method description.
6. Showing external payment methods in the checkout require a contract agreement, please reach out to your key account manager for more information.

The payment methods are defined when calling the Klarna Checkout. The payment methods will be presented in the checkout in the order they are set in the API call, after the default options provided by Klarna.

"external_payment_methods": [
    {
        "name": "Cash on delivery",  // Mandatory
        "redirect_url": "https://…", // Mandatory. HTTPS. Page for completing the purchase.
        "image_url": "https://…",    // Optional. HTTPS. Exact size: 69x24px
        "fee": 1450                  // Optional fee added to the order.
        "description": "Lorem.."     // Optional. 500 character limit. Links can be set with the Markdown syntax [Text](URL)
    }
]

KCO supports a wide range of external payment methods in Klarna Checkout. The following list displays all of the external payment methods we currently support:

Note: The name is case sensitive and must be used in exactly the way it’s mentioned in this list. (e.g. “Paypal” won’t work but “PayPal” does).

To be compliant, you need to have an agreement between you and the external payment method providers (e.g. Paypal). This does not apply if you are providing the method yourself (e.g. Vorkasse).

When the Checkout is loaded, you have the option to load additional payment methods as external checkouts, such as “Wallets". Payment Methods integrated as External Checkouts in KCO are shown as buttons in the bottom of KCO and available from the moment KCO loads. When a user clicks on one of these Express Checkout buttons, they will be redirected to the URI you have added to the button, where they will complete the purchase, e.g. to Paypal.

Please note that when a consumer is using a payment method not offered by Klarna, no purchase order is created by Klarna. Klarna doesn’t know whether the consumer eventually finishes the purchase after leaving the checkout. Klarna doesn’t send any kind of confirmation emails or handle any money. All processing of the order is the merchant’s responsibility.

For External Checkouts, you don’t need Klarna Checkout to collect data about the consumer (e.g. Paypal).

Note: For PayPal you have to configure external_checkout to make sure that they appear in all payment flows. You are responsible for the completion of the purchase flow including the e.g. address collection and confirmation page.

1. Since External Checkouts take place outside Klarna checkout, no user data will be shared for this purchase to you, the merchant. Klarna has no involvement in the integration towards any third party provider.
2. You/the external payment method will need to cater for that so all relevant user data to finalize the purchase (e.g. address, name, etc.) is stored securely.
3. Please note that in the case of external payment methods, you or the third party provider will need to host your own pages to make the purchase flow compliant. Including e.g. order confirmation page, order summary page and buy button.
4. New backend integration towards the third party payment provider will be required.
5. Given that this is an external payment, Klarna’s buyer protection will not apply for your consumers.

"external_checkouts": [
    {
        "name": "Non Klarna eWallet", // Mandatory
        "redirect_uri": "https://…",  // Mandatory. HTTPS. Page for completing the purchase.
        "image_uri": "https://…",     // Mandatory. HTTPS. Exact size: 276x48px
        "fee": 1450                   // Optional fee added to the order.
    }
]

KCO supports a wide range of external checkouts in Klarna Checkout. The following list displays some of the external payment methods we support:

Note: The name is case sensitive and must be used in exactly the way it’s mentioned in this list. (e.g. “Paypal” won’t work but “PayPal” does).

To be compliant, you need to have an agreement between you and the external payment method providers (e.g. Paypal). This does not apply if you are providing the method yourself (e.g. Vorkasse).