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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)

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from Jason McClure, on Nov 28, 2022

This company will do nothing but waste your time. They have horrible customer service, and no way to report of fix technical issues on their site.

from LCM, on Oct 29, 2022

Worse customer service, slow to resolve issues. Stay away!

from Klarna sux, on Oct 06, 2022

Bad experience very first time using Klarna. I have a multiple credit cards and personal loans,,never missed a payment,never pay late and have a good credit score. My Klarna spending power is twice as much as my first purchase using or 4 pay option,yet Klarna required me to pay half of the purchase price in the first payment,instead of 4 equal payments. I'm n case you didn't know,just be aware that Klarna also pulls a credit check everytime you use Klarna. I'll be using a different processor and leaving Klarna in the dust. Klarna sucks

from Matt, on Sep 27, 2022

Klarna use to be an okay option. Matter of fact, I’ve used them several times here and there. But recently, I’ve noticed a trend; now, instead of dividing the purchase into 4 equal payments, they’re wanting half of the purchase as the first payment and then they’re dividing up the remainder. It automatically “adjusts” the payment schedule and it’s ‘just because’. Now, don’t get me wrong, I would more than understand if there was an issue processing a payment in the past or there was some reason that would trigger a larger first payment. But as someone who has never had any issues with past payments, the last minute ‘adjustment’ seems slimy. And I’m sure that if a Klarna PR rep read this, they would probably offer up some excuse as to why they’re pulling a small switch up (maybe the wind was blowing in the wrong direction). But in the end, if that’s the game that they want to play, that’s fine by me. Especially since Affirm was more than willing to process the same transaction without charging the doubled first payment. Klarna isn’t the only kid on the block.

from Jeffrey, on Dec 12, 2021

I've used Klarna twice now, it's a great concept on paper, the only problem is returns. Trying to get your money back is a hassle. I ended up getting sent the wrong item and the merchant said they Would give me 50% of the price back. Trying to contact Klarna and tell them is fruitless. Not only did I not get my refund, I was still charged the full amount each week. I won't use Klarna again for this. It's great as long as you're not planning on returning anything or expecting any kind of refund if you have a damaged or wrong item.

from Pet, on Nov 24, 2021

Very bad. Double, sometimes triple payment for the same thing. Awful, amazingly bad customer service.

from Nuriddin, on May 07, 2021

Awful service. Not recommend

from Monica, on Jan 29, 2021

This company is terrible. I set-up my account on auto-pay and they still charged me a $25 late fee. I called to resolve the issue and the agent didn't assist me at all. Told me I wasn't set-up on auto-pay so I provided him with a screenshot from the website clearly showing "auto-pay enabled". $75.00 in late fees even though the payment was made. Unbelievable. I will never ever use them again or refer them to anyone. Complete rip off. First thing on Monday, I am contacting the Better Business Bureau and reporting these scam artist! Beware and make sure you check your account and "ALL" transactions because they hide the late fees!!!

from Aneka, on Aug 06, 2020

Avoid Klarna. They make it intentionally difficult to pay invoices so that they can charge you late fees. Judging by the reviews, hundreds of others have had the exact same experience as me.

from Ian, on May 31, 2020

Incompetent, disorganized company. I sent a return in March but they continued to bill me for the amount. It's as if they don't talk to the companies you buy from. The online chat "customer service" (and I use that term loosely) is like talking to a brick wall, just a load of stock answers and they won't let me speak to a manager. They have also refused to delete my account so I will be writing to the Information Commissioner because they are retaining my personal data without my permission.

from Diana, on May 06, 2020

Terrible service during COVID19. While every single credit card company refunded or credited back a late fee, this place refused to do so. I actually tried to make payments to them during COVID-19 and they would not help me. Companies like this should go out of business when they refuse to help during times like COVID-19. Please do not use them, do not let them profit when they have not lent a helping hand during these hard and trying times! See the agent's response below: 03:17 PM Shahnur I am sorry to hear you facing hardship under this time - we are able to pause your order under such times for 90 days, however once fee paid we are not able to remove it ma'am.

from Nick Westerlund, on Dec 20, 2019

Terrible customer service. Was supposed to be called back by their escalations department 4 days ago about an incorrect payment on my account and still have not received a response. I have contacted multiple times requesting to talk to a manager and they have all told me a manager is not in right now no matter what time I have called. They took 5 times the amount owed out of my bank account and don't want to help me with the issue. they are petty thieves don't use their service unless you like to have your hard earned money stolen.

from Tina Oakley, on Nov 14, 2019

Still trying to charge me for an item I cancelled weeks ago, telling me to contact the store. Said I still have to pay for it & very rude customer service. Take no responsibility.

from ANDREW P, on Nov 14, 2019

Do not touch with a ten foot pole! Their customer service is a joke!

from Fredrick, on Apr 25, 2019

Do not use Klarna - Just stay away! Do not use Klarna they are the worst experience I had!

from Mark Span, on Jan 14, 2019

Everything about this company is a wreck. Non working web page, tricks to have you not pay bill on time, everything. Stay away - very far away!!!!

from jessica hudson , on Jan 06, 2019

Had the most ridiculous experience with klarna. I had been with them for over a year and when I asked to change my email address (due to no longer having access to it) I was told that would not be a problem. However shortly after I began receiving no payment letters for £15. I phoned the first time to be told to ignore that letter as it must be a mistake and there was nothing to pay. I then received another letter so phoned (as I cannot pay due to not having access to the email address and their incredibly awkward log in link situation) to be told again there is nothing to pay and when I insisted was very rudely told they could not see anything and was made out to be lying. This continued until I received a final warning letter on Friday. This time I attempted a live chat and quoted the statement number, both email addresses and other information that I was uncomfortable giving out online. I was dealt with by a incredibly rude adviser whom when I told of the situation and stated how this had caused stress for months and negatively impacted my credit rating, told me there was no note of my phone calls or complaints on the statement and was told this must have not happened. I could not believe I was being called a liar again! I was very bluntly told to transfer money into their bank account. I tried to explain that as non of the other advisers were able to find the statement that of course there would not be a note on the statement but was told this is not possible and was told I was wrong. This entire time I was called a liar did not once receive a apology from anyone. I hope I have finally dealt with this but I am left incredibly unsatisfied and would never deal with them again. I will warn everyone I can about this - absolutely awful!

from, on Dec 20, 2018

The previous reviewer about the minimum payment scam is correct. Bought a RugDoctor and financed it through Klarna and they are in cahoots to screw you for extra $$.

from Motshagen, on Nov 23, 2018

Bad customer service, Bank Transfers always have issues. You get payment reminders for payments already made, you need to call them time after time.. If the payment option is Klarna, then no shopping at that store!

from Sue, on Sep 08, 2018

Wish there was an option to put ZERO stars. Horrible company to finance anything with. Very unorganized, limited shopping options, and not worth the trouble! I would highly suggest finding other means for financing.

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