Klarna Docs - What is Klarna payments?

What is Klarna payments?

Read this article for an introduction to Klarna payments, its place in the Klarna product family, and payment scenarios it supports.

Klarna payments is an omnichannel solution that lets you add Klarna's payment methods to checkout. You can offer Klarna payments to your customers by:

  • accepting web and in-app payments through a direct API integration
  • connecting your existing e-commerce platforms like Shopify, Adobe Commerce, SalesForce Commerce, and more through plug-ins
  • accepting in-person payments with our in-store solutions.

This guide covers direct Klarna payments integration that you can complete with Klarna payments API.

To offer Klarna payments in your store through a third-party platform, see our Platform solutions section.

Our two leading solutions, Klarna payments and Klarna Checkout, let your customers pay for their purchases using Klarna's payment methods. Read on to find out which solution works best for your business.

Klarna payments is a perfect addition to your existing checkout solution. With Klarna payments, your customers select a preferred payment method at checkout and complete their purchases. By integrating Klarna payments with your online store, you have more control over the checkout experience. You decide how to handle cart and order lines, shipping method selection, customer data collection, processing gift cards, and so on.

Klarna Checkout is an all-in-one checkout solution that handles address collection, selection of a payment method, and selection of a shipping option. In your online store, Klarna Checkout is represented by an iFrame with separate sections for billing, payment, and shipping.

When you integrate with Klarna payments, your customers can choose one of the following payment methods:

  • Pay now with a card or by direct debit
  • Pay later
  • Pay in parts, either interest-free or with Annual Percentage Rate (APR)

The availability of payment methods depends on your location and details of your Klarna contract. Contact Merchant support for more details.

Klarna payments supports payments in most checkout processes, including online stores, mobile applications, and brick-and-mortar stores. The two main payment scenarios for Klarna payments are one-time payments and recurring payments.

A one-time payment happens at the time of a purchase when a customer uses Klarna to pay for items in the shopping cart, virtually or in-store. 

With recurring payments, a customer agrees to pay for a product or a service at the time of purchase, at a later date, or both. Depending on the payment cadence, you can use recurring payments for subscriptions and unscheduled charges.

Subscriptions.

When your customer buys a subscription, they agree to pay for access to a product or a service in regular intervals, for example, monthly, quarterly, or annually. If a subscription renews automatically, Klarna processes the following payments at the beginning of each new billing cycle.

Examples of subscriptions include music and video streaming services, newspapers or magazines, and subscription boxes.

Unscheduled charges.

Unlike subscriptions, unscheduled charges do not occur at any regular frequency but are tied to the customer's usage of a product or service. This type of charge can also be related to another transaction and occur after that first transaction is completed. Examples of unscheduled charges include:

  • On-demand charges, such as scooter rentals, city bike rentals, car sharing, food delivery, and cashier-less store solutions
  • Incidentals, damages, and add-ons, such as speeding violation tickets or tips