Klarna is an AI-powered global payment method and shopping assistant that lets customers pay in full, later, or over time. Klarna manages the payment options available within the Klarna payment method, while Paytrail provides access to payments, refunds, settlements, and reporting for merchants in the Merchant panel. Once activated, Klarna is ready to use without additional setup.
Payments made with Klarna are settled in full according to your settlement cycle. Merchant fees for Klarna payments follow Paytrail’s pricing list.
How Klarna payments work at checkout
When a customer selects Klarna at checkout, Klarna shows a personalized set of payment options based on the customer’s eligibility. Not every option (such as pay in 30 days or pay over time) is necessarily available for every customer or every purchase. Eligibility is assessed by Klarna, so the options shown may vary and aren’t something the merchant or Paytrail can adjust. The payment flow and next steps depend on which available option the customer chooses.
Pay in full
The customer pays for their purchase immediately at checkout using payment options available in their market, such as credit or debit cards, mobile wallets, or bank transfers.
Once the payment is confirmed, the customer is returned to your store, you receive immediate confirmation, and the transaction appears as Paid in the Merchant panel.
Customers can view and manage their payment in the Klarna app, where they may choose to pay earlier or, when available, extend the due date.
Pay in 30 days
The customer receives their order immediately and pays up to 30 days later with no interest or additional fees. Once Klarna accepts the transaction, it appears as Paid in the Merchant panel.
After the order is placed, Klarna sends the customer a payment information email with the due date. Klarna assumes the credit risk if the customer does not pay.
Customers can view and manage their payment in the Klarna app, where they may choose to pay earlier or, when available, extend the due date.
Pay over time
The purchase can be divided into fixed monthly instalments over a period of up to 36 months. When the customer applies for financing, Klarna performs a credit check.
Once Klarna accepts the transaction, it appears as Paid in the Merchant panel.
The first payment is due one month after the order is processed, with subsequent payments due monthly. Late or missed payments may result in fees. Klarna handles invoicing the customer and assumes the credit risk if the customer does not pay.
After the order is placed, Klarna sends the customer a payment confirmation email, followed by a payment plan email.
Customers can view and manage their payments in the Klarna app.
Website terms and conditions requirement
Klarna requires merchants to include the following text in their website terms and conditions:
You can choose to pay using Klarna. Klarna will provide you with specific payment terms. For further information or questions regarding your payment, please visit Klarna’s website.
Klarna Dispute Evidence Submission Requirements
Klarna offers Evidence Submission Requirements designed to help protect merchants against certain fraud-related disputes and chargebacks. Eligibility, coverage, and delivery-related requirements are defined by Klarna and apply directly between Klarna and the merchant.
Check the Klarna Network Rules for detailed eligibility and coverage information.
Optional Klarna conversion features
Klarna also offers optional conversion features that can help reduce friction in checkout and support higher conversion. These features work alongside Klarna payments, but they are not required to offer Klarna through Paytrail. Conversion features are configured on the e-commerce platform side and may require configuration or code placement.