Klarna supports multiple tokenization use cases that enable flexible payment experiences. Depending on a partner’s business model, tokenization can be applied when a payment method is first saved (token creation) or later when that stored token is used to complete a payment (token charges).

Token creation occurs when a customer saves Klarna as a payment method for future transactions. Klarna issues tokens with specific scopes that determine how and when they may be used, depending on the customer’s interaction and the type of service being provided.

• Subscriptions: When a customer signs up for a subscription using Klarna, their payment details are securely tokenized. This token enables the partner to process recurring payments automatically, even when the customer is not interacting with the service. Partners are responsible for complying with legal and regulatory obligations for subscriptions, such as cancellation and renewal notifications. Subscriptions can be configured with or without a free trial period.
• On-demand services: For on-demand use cases—where immediacy and flexibility are important (such as ride-sharing, streaming, or food delivery)—customers can add Klarna as a payment method in a digital wallet or directly to their account. This token allows for convenient one-click payments, when the customer is authenticated and actively initiates the transaction. Step-up authentication may be required for verification when prompted by Klarna.
• Subcriptions combined with a purchase: During a one-time purchase, customers may also opt to add a subscription or another future service. The initial payment is processed with Klarna, and—depending on the future use case—a token is generated for future recurring charges.

Once a token has been created, it can be used to process payments. Token charges fall into two main categories.

• Customer is present: The customer is actively involved, authenticated, and initiates the transaction (for example, making an on-demand purchase or adding funds to a digital wallet). Payments are designed to be seamless—often as one-click checkouts—thanks to the stored token. Use of this flow is strictly limited to on-demand services where the customer begins each payment flow; it must not be used for subscriptions, or if the customer is not present.
• Customer is not present: The partner initiates the payment without the customer being involved at the time of the transaction. This applies to scenarios such as subscription renewals or scheduled payments, where the charge is automated. These tokens are required for any recurring or pre-authorized transactions where ongoing customer approval is not needed. Partners must ensure all uses are compliant with relevant regulations and Klarna’s guidelines.

To implement Klarna’s payment flows effectively, Acquiring Partners can choose between different integration paths based on the solutions they offer to their Partners. Such solutions are generally categorized as two main interaction journeys:

When Partners are redirecting their customers to a hosted checkout form or loading an embedded checkout element from the Acquiring Partner. This integration path requires the Acquiring Partner to implement a combination of Klarna’s SDK and APIs to process transactions:

Token creation:

• With a purchase:

• Without a purchase:

Subsequent token use for future purchases

• Customer present :

• Customer not present:

When Partners are creating their own checkout form and uses the Acquiring Partner’s API to list available payment methods and obtain a payment url to redirect their customers to. The integration between the Acquiring Partner and Klarna is solely API-driven:

Token creation:

• With a purchase:

• Without a purchase:

Subsequent token use for future purchases:

• Customer present :

• Customer not present :