Klarna supports multiple tokenization use cases to enable flexible payment experiences. Depending on the partner's business model, tokenization can be used for subscriptions, on-demand services, or mixed payment scenarios.

• Subscriptions: Allows customers to sign up for a subscription using Klarna as their payment method. Once complete, the payment preferences are tokenized and automatically used for renewals by the merchant using the token to create orders.
  • Options: Subscription with free trial, Subscription without free trial
• On-demand: ​Allows customers to add Klarna as a payment method in a digital wallet for one-click purchases of on-demand services.
  • Options: On-demand with initial purchase, On-demand without purchase
• Mixed Payments: ​Allows customers to make one-time purchases and add a subscription or additional service during checkout. Customers can choose any available payment option within the Klarna ecosystem for their initial purchase and tokenize another payment option for future transactions.

There are two types of token charges:

• Customer present: Customer initiates the transaction and is actively present during the payment flow. Token charges might go through immediately as a one-click experience or, in certain cases, require further customer interaction via step-up.
• Customer not present: Partner initiates the transaction without the customer being present in the payment flow, therefore no customer interaction is expected.

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:

• Hosted checkout forms and embedded checkout elements:  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 or without a purchase):

• Subsequent token use for future purchases:

• Server-side only integration: 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 or without a purchase):

• Subsequent token use for future purchases: