Buy now, pay later · On request
Klarna
Klarna is the Swedish buy-now-pay-later service, a licensed bank since 2017: the payer chooses at checkout to pay now, to pay later after delivery or to split the amount into instalments, and Klarna pays the merchant the full amount, less its fee, and collects from the payer itself. Klarna carries the credit and fraud risk, so there are no chargebacks for the merchant; refunds go back through Klarna.
Key facts
- Currencies
- EUR, GBP, USD, PLN, CAD
- Operations
- Pay-in · Refund
- Settlement
- T+1
- Chargebacks
- not possible
How a payment goes through
- 1The payer picks their bank on the checkout
- 2They approve the exact amount in the bank's app
- 3The licensed provider initiates the transfer over the instant rail
- 4Settlement in seconds; webhook to the merchant; no chargebacks
How a payment goes through
- The checkout offers Klarna; the payer is sent to Klarna or sees its widget in the form.
- The payer identifies with Klarna, picks pay now, pay later or instalments, and Klarna approves in seconds.
- The provider confirms the order; Klarna settles to the merchant on its schedule, from the next business day.
- Tranzify writes the result and calls the merchant’s webhook.
Klarna against cards
Klarna started in Stockholm in 2005 and pays the merchant whatever the payer chooses, so a shop gets the full amount while the payer spreads the cost.
| Klarna | Cards | |
|---|---|---|
| What the payer needs | a Klarna account, created at the first purchase | a card accepted by the acquirer |
| Who carries the credit risk | Klarna | the issuer and the merchant, through chargebacks |
| Chargebacks | none | scheme rules |
| Recurring | no | yes, with tokens |
| Refunds | yes, through Klarna | scheme refunds |
The method is in the catalogue on request.
Who uses it
E-commerce and fashion, where payers expect instalments at checkout; travel and delivery; digital goods for payers who want to try before paying. A client (a payment company) enables Adyen, Stripe, Checkout.com or Mollie for Klarna under its own contract; the integration is enabled on request.
How to connect
- 1Onboard with Tranzify and get your network, keys and back office.
- 2Enter your account with the provider in the terminal settings — Tranzify already speaks its API.
- 3Add routing rules: countries, currencies, amounts, BIN ranges, priorities and weights.
- 4Go live. Every payment, callback and retry is in the journal for five years.
Providers offering this method
On request — Request this integration
Industries
Terms
Frequently asked questions
Which Klarna options are there?+
Are there chargebacks?+
Are payouts and recurring charges possible?+
Related methods
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