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Klarna Review


Payment gateway provider Klarna has been making the news recently because of its entrance to the US market with its innovative risk assessment method and a consumer financing option that allows customers to pay over time.

Are you in the market for a new gateway provider, or are you starting an online business and want the ability to quickly accept customer payments without hassle? The payment gateway provider Klarna has been making the news recently because of its entrance to the US market with its innovative risk assessment method and a consumer financing option that allows customers to pay over time. Let’s take a look at how it works and see if it’s right for your business.

What is Klarna?

Klarna was founded in 2005 in Stockholm, Sweden by three business school students. The solution was originally launched as a way for customers to receive the goods they wanted and pay their bills later. Klarna still offers an e-commerce solution for consumers that allows them to enjoy first, pay afterwards. However, the company also has a traditional gateway solution for businesses – the payment gateway creates a link between your business and payment processors.

Klarna homepage

It’s not necessary to offer the buy now, pay later option to use Klarna, but you can enable that if you’d like to give your customers the option. 

Related Article: Options for Taking Credit Cards Online.

Compatible Processors and Platforms

Klarna isn’t tied to a single payment processor. That’s good news for your business. The less good news is that its compatibility is limited to smaller payment processors including North Payments, Smart2Pay, Buckaroo, PAYONE, HiPay Fullservice, Acapture, and Payzoff. Klarna also works with two larger companies: Adyen and Ingenico ePayments.

The company also claims compatibility with ecommerce services and shopping carts, including WooCommerce, OpenCart, and Magento.

Klarna Features

Klarna boasts an easy checkout experience, a single integration, customer risk assessment, continuously optimized user experience, preconfigured modules and plugins, and an API/SDK for developers.

Easy Checkout Experience

How many customers have you lost because your checkout process is too long and cumbersome? Klarna aims to change that. All customers need to do is enter their email address and their shipping details when they order something for the first time. Klarna believes that removing the friction associated with online transactions will increase both conversions and your bottom line.

Customer Financing and Pay Later

The options for buy now, pay later include paying after the purchase has arrived, and paying over time. In both cases, the customer will deal directly with Klarna to pay. If a customer selects the financing option, your business is still paid by Klarna at the time of purchase.

A customer can choose to apply for the Klarna line of credit/financing at the same time as placing an order. Klarna has a short video that shows the joint application and place order process, available here: 

A Single Integration

Klarna boasts that its single integration means fewer headaches for merchants. When you choose this gateway, you have a single supplier, one user agreement, one payout, one source for settlement, and one place to turn to for customer support.

Customer Risk Assessment

How do you know whether a customer is going to pay you? Klarna has developed algorithms to determine whether a customer will make the payment or is likely to default. Customers that seem like a stronger default risk will be forced to enter their payment details after providing their email address and shipping details, while those with stronger credit histories have over three weeks to pay Klarna. The best part is that you get paid no matter what.

Continuously Optimized User Experience

Your customers don’t just use a desktop or laptop anymore to shop online – they’re just as likely to use tablets or smartphones. Klarna’s programmers can customize the iframe to suit your needs and ensure that shoppers have a great experience on your site.

Preconfigured Modules and Plugins

Are you looking for ways to improve the e-commerce experience at your online store? Klarna offers a number of preconfigured modules and plugins, such as shopping carts, digital marketing solutions, and platforms.

API/SDK for Developers

Integrating a payment solution into your e-commerce site can be a pain. Klarna’s API/SDK for developers makes the process easier and faster, so you can start selling sooner.


Klarna’s website doesn’t provide visitors with much information on the security measures it takes to protect its customers. It doesn’t specify whether the gateway is PCI DSS compliant, or which level of certification the gateway solution has received. What might give you peace of mind is that Klarna assumes the risk of customer payments. So, even if Klarna doesn’t receive money from the customer, you will still get paid. Klarna claims that its ability to assume risk enables it to accept a greater number of purchases.

The privacy section on the website notes that Klarna uses computer safeguards, encryption, secured files and physical security measures at its buildings to ensure that unauthorized parties don’t gain access to sensitive and confidential data.

Product Features

Selective: Adyen, Payzoff, other


  • Includes virtual terminal
  • Fraud prevention features
  • Recurring billing
  • Level III data
  • Mobile swiper support
  • Card storage vault
  • Hosted Checkout
  • Multi-currency support
  • Web Service API
  • Customized risk preferences
  • Real-time reports
  • Electronic invoicing

Klarna Q&A

Klarna Reviews (25)

Do you know this product? Write a review about it
from sachiko , on Sep 03, 2018

This is the worst company ever!

from Armand, on Jul 02, 2018

Website is a wreck, nothing works. Asking pin's like its Christmas. I don't remember PayPal ever being this sneaky.

from Jerry G, on May 05, 2018

They're easy to use but be careful with Klarna, because they have this little sneaky way of trying to get you to not pay the balance to save the interest. They only allow you to make the minimum payment of $25 automatically. This way there's a chance that you might not pay it off in time, and then then be stuck with the interest. The only company I know that does this. Careful folks!!

from Holli, on Sep 24, 2017

They don't function, have no client service and charge you more for all of that! Want happy customers, don't choose Klarna.

from CardFellow, on Apr 20, 2016

Klarna's gateway is unique in that it offers a "bill me later" type option where customers can buy now and pay later. However, the gateway is currently only compatible with a limited range of processors.

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