Klarna was founded in 2005 by three Swedish university students. Their aim was to make it easier for people to shop online. Klarna is one of Europe’s biggest banks, providing payment solutions for 60 million consumers, through 70,000 merchants in 18 countries.
Klarna Credit Card Processing & Payment Services
Klarna accepts various cards both credit and debit card, via their online portal.
- Visa
- Mastercard
- American Express
The following currencies are accepted by Klarna: – AUD, CAD, CHF, DKK, GBP, NOK, USD and YEN.
The currency accepted by Klarna Checkout depends on your specific agreement with Klarna. Klarna is regulated by both the Swedish Financial Supervisory Authority (SFSA) and the Financial Conduct Authority (FCA) in the UK.
Other Klarna Products and Services
- Pay Now: Business customers can pay in full at the check out
- Pay Later: Customers don’t need to fill in credit card details at checkout, they are given 14 or 30 days to pay upon receipt of their order
- Slice It: Customers can pay for their purchases over time at low interest rates. Even if the customer defaults, the company still gets paid.
Klarna Pricing & Fees
Klarna hasn’t published its pricing and fees on its website. Businesses can contact them directly through this link. (Scroll down to the bottom of their page)
To see how that compares have a look at: 2019 UK Merchant Account and Credit Card Processing Fee Comparison.
Klarna Features
- Customers aren’t redirected to another site when paying
- 24/7 customer service from experienced staff
- Multiple payment methods
- Pay later as standard
- Payment assured by Klarna
- GDPR and PCI compliance
- Automatic updates
- Settlement files/merchant portal for account management
- Klarna takes all the credit risk – business gets paid on successful checkout
- Different packages for different businesses
- Company customisation of check out
- Pay later service is built into Klarna’s checkout
Company Background
Klarna’s three young founders, Sebastian Siemiatkowski, Niklas Adalberth and Victor Jacobsson entered the 2005 Stockholm School of Economics annual entrepreneur award with their concept of providing businesses and consumers with a simpler way to shop online. Their innovative ideas were not well received, and they came almost last. However, they were not deterred and founded Klarna later in 2005.
Klarna’s business “is quite basic” according to Sebastian Sierniatklowski, one of its founders and now CEO. Shoppers simply given an email and delivery address and payment is sorted out on delivery. Klarna pays the retailer immediately and receives the money from the buyer within 14 or 30 days of delivery.
By 2010 Klarna was selling its services in Norway, Finland, Denmark, Germany and the Netherlands. In early 2011, The Telegraph listed Klarna as one of Europe’s 100 most promising young tech companies. 2012 saw Klarna open up in Austria and in 2013 Klarna and SOFORT AG merged.
Klarna is now established in the UK and entered the US market in 2015. Klarna handles over 40% of online sales in Sweden. It also manages 10% of all online transactions in Europe and employs 1,500 people.
Klarna’s customer service centre is open 24/7 and has had mixed reviews. However, they have a very comprehensive FAQ section on their website which answers most questions.
Klarna Pros & Cons
The following pros and cons are based on information available on Klarna’s website and reviews from Trustpilot and Facebook.
Pros:
- Customers can pay after delivery
- Customers don’t need to pay if they are returning the goods ordered
- Easy checkout experience
- Customers can pay by instalments
- Klarna pays businesses at checkout
Cons:
- Customers experience problems with their purchase being refused without any valid reason
- Delay in responding to emails from customers
- Problems with refunds to customers
Klarna Reviews
- Trustpilot: 8.8 out of 10 based on 1,279 reviews
- Facebook: 4.1 out of 5 based on 311 reviews
Website: www.klarna.com/uk
How Does Klarna Compare?
Klarna gives no information about its charges online, so it isn’t easy to compare directly with other payment gateways and merchant accounts. Go to the company’s products page and scroll down to the bottom to get a direct quote. You can also visit a comparison site such as Cardswitcher and/or read more on our merchant account comparison page.