As one of the leading payment providers globally, Klarna offers a wide array of flexible payment methods tailored to meet the needs of modern consumers. These options are designed to give customers control over how and when they pay, making it easier to shop and increasing the likelihood of completing purchases.
In this article, we’ll explore the main payment methods Klarna offers, how they work, and which ones may be available in your region.
1. Pay Now (Immediate Payment)
Pay Now is a straightforward payment method that allows customers to pay the full amount at the time of purchase using either their bank account, debit card, or credit card. It’s an option for shoppers who prefer to complete their transactions immediately without deferred payment or installments.
- How it works: Customers select Pay Now during checkout, input their payment details, and Klarna processes the payment instantly. The amount is debited from the account or card immediately.
- Accepted Payment Options:
- Debit cards
- Credit cards (Visa, MasterCard, American Express)
- Bank transfers (available in specific regions)
Best for: Customers who don’t want to delay or split payments and prefer to pay the full amount upfront.
2. Pay Later (Invoice)
The Pay Later option is one of Klarna’s most popular offerings. This method allows customers to receive their goods first and pay for them later, typically within 14 or 30 days. It’s a great way for shoppers to try items before they commit to payment, increasing trust and satisfaction.
- How it works: Customers choose the Pay Later option at checkout. After receiving the product, Klarna sends an invoice (either via email or mail), and the customer has up to 30 days to complete the payment without any interest or fees, as long as they pay on time.
- Availability: This option is widely used in countries like Germany, Sweden, and other parts of Europe where invoicing payments are common.
Best for: Customers who want the flexibility of receiving their goods before paying, especially for trying out clothing, electronics, or other high-value items.
3. Pay in 3 (or Pay in 4) – Interest-Free Installments
Klarna’s Pay in 3 (or Pay in 4 in some regions) allows customers to split the cost of their purchase into smaller, interest-free installments over a fixed period. This method is one of Klarna’s key selling points, as it offers shoppers an easy way to manage their budget while making purchases.
- How it works: During checkout, customers select the Pay in 3 (or Pay in 4) option. They make the first payment at the time of purchase, and the remaining payments are automatically scheduled every two weeks (or monthly, depending on the region).
- Payments: The customer’s card is charged at regular intervals, and there’s no interest or additional fees as long as payments are made on time.
Best for: Shoppers looking for a way to spread out their payments without incurring interest or fees, particularly useful for moderate to high-value purchases.
4. Financing (Pay Over Time)
For larger purchases, Klarna offers Financing, which allows customers to spread payments over several months (up to 36 months) with or without interest, depending on the terms. This payment method is useful for high-ticket items, giving customers the option to budget more comfortably for bigger investments.
- How it works: Customers select Financing at checkout and are offered various repayment plans (3, 6, 12, or 36 months). Some of these plans may include interest, while others, like promotional periods, might be interest-free.
- Credit Check: Klarna performs a soft credit check to determine the customer’s eligibility for financing. This won’t impact the customer’s credit score, but the terms may vary depending on the creditworthiness.
- Interest-Free Plans: Klarna often offers 0% interest for certain promotional periods, which can attract more customers during sales or special events.
Best for: High-ticket items like electronics, furniture, or luxury goods, where customers might want to pay in smaller installments over an extended period.
5. Direct Debit Payments (ACH)
In certain regions, Klarna supports payments via Direct Debit or Automated Clearing House (ACH) systems, allowing customers to link their bank accounts for payments. This option allows for automatic, scheduled payments directly from the customer’s bank account.
- How it works: During checkout, customers select Direct Debit as their payment method, link their bank account, and authorize Klarna to automatically withdraw payments on the scheduled dates.
- Recurring Payments: This method is often used for subscription services or installment plans, where the payment is deducted automatically on the due date.
Best for: Customers who prefer to make payments directly from their bank accounts and want the convenience of automatic deductions without needing to remember to pay manually.
6. Credit Card Payments
In addition to Klarna’s unique payment solutions, the platform also supports standard Credit Card transactions. Customers can pay for their purchase using traditional credit cards such as Visa, MasterCard, or American Express.
- How it works: Customers choose to pay via credit card at checkout, enter their card details, and Klarna processes the payment as it would with any other credit card transaction.
- Flexibility: If the customer has a Klarna account, they may still be able to use Klarna’s Pay Later or Installments features, even when using a credit card.
Best for: Shoppers who are accustomed to using credit cards but still want access to Klarna’s payment options.
7. Bank Transfer (SOFORT)
SOFORT is a popular bank transfer payment method in several European countries, including Germany, Austria, and Switzerland. With SOFORT, customers can transfer money directly from their bank account to pay for their purchase.
- How it works: When a customer selects SOFORT at checkout, they are redirected to their bank’s online portal. They log in using their bank credentials and approve the payment, which is then transferred to the merchant’s account via SOFORT.
- Secure and Trusted: SOFORT is widely used in regions where bank transfer payments are the norm, offering a secure way for customers to complete their purchase.
Best for: Shoppers in Europe who prefer using direct bank transfers rather than cards or financing options.
8. Klarna Card (Region-Specific)
In select regions, Klarna offers a Klarna Card, which allows users to pay for purchases with the flexibility of Klarna’s installment options, even when shopping in physical stores. This card works similarly to a credit card but is linked to Klarna’s payment plans.
- How it works: Customers use the Klarna Card just like they would a traditional credit card, but the payment options (such as Pay Later or Pay in Installments) are handled by Klarna.
- Available Regions: The Klarna Card is currently available in select countries, such as the United States, Germany, and the United Kingdom.
Best for: Customers who want the convenience of Klarna’s flexible payments but for both online and offline purchases.
Payment Methods by Region
It’s important to note that Klarna’s payment methods vary depending on the region. For instance, Pay in 3 or 4 is common in the United States and United Kingdom, while Pay Later (Invoice) is highly popular in Germany and Scandinavia. Some payment methods, like SOFORT or the Klarna Card, are region-specific.
Conclusion: Flexible Payments with Klarna
Klarna’s diverse range of payment methods offers something for every customer, whether they want to pay immediately, delay payment, or split it over time. By offering Klarna’s options on your online store, you can attract more customers and improve conversions by reducing the friction often associated with upfront payments.
Whether it’s Pay Now, Pay Later, or Financing, Klarna provides flexibility, trust, and convenience that meets the needs of today’s consumers.