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E-Commerce · head to head

Braintree vs Klarna

Braintree logo

Braintree

E-Commerce

PayPal's payment gateway and processor for cards, PayPal, Venmo and digital wallets

From
On request
Rated
-
Full reviewWebsite
Klarna logo

Klarna

E-Commerce

Buy now pay later and instalment checkout for online and in-store merchants

From
On request
Rated
-
Full reviewWebsite

The short version

  • Each has a real cost: Braintree the merchant relationship sits with PayPal, whose risk operations can place reserves on or hold funds in accounts they flag, and appeals run through support queues, so a business with thin working capital carries real exposure to a decision it cannot negotiate.; Klarna merchant fees for the short-term products run around 5.99% plus a fixed fee in the United States, roughly double a standard card rate, so unless Klarna measurably lifts average order value or conversion it is a straight margin loss.
  • They diverge on capability: Braintree covers Card processing, Klarna covers Pay in 4.
  • Prices and features above were last checked on 31 August 2026.

Where they differ

Only the attributes on which Braintree and Klarna actually diverge.

Attributes where Braintree and Klarna differ
AttributeBraintreeKlarna
Pricing modeltransactionquote
PlatformsWebWeb, iOS, Android

Identical on both: starting price (On request), free tier (No), user rating (Not yet rated), category (E-Commerce).

What each one covers

Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.

Only in Braintree

  • Card processing
  • PayPal and Venmo acceptance
  • Digital wallets
  • Hosted fields
  • Card vault
  • Recurring billing
  • Split payouts
  • Multi-market coverage

Only in Klarna

  • Pay in 4
  • Pay in 30 days
  • Longer-term financing
  • Klarna app placement
  • Klarna Checkout
  • In-store payments
  • On-site messaging
  • Merchant portal

What people use each for

The jobs each tool is most often brought in to do.

Braintree

  • A United States consumer brand that wants Venmo in the checkout rather than as an off-site redirectnot Klarna
  • A subscription business that needs a vault and recurring billing alongside wallet acceptancenot Klarna
  • A marketplace splitting each payment between the platform and multiple sellersnot Klarna
  • A merchant consolidating card and PayPal acceptance into a single integration and a single settlementnot Klarna

Klarna

  • A fashion or furniture retailer with average order values high enough that a 3% fee uplift is repaid by a larger basketnot Braintree
  • A merchant selling to younger shoppers who have low credit card penetration and would otherwise abandon at checkoutnot Braintree
  • A European retailer wanting a single hosted checkout that handles instalments, invoice and card in one flownot Braintree
  • A brand that wants distribution inside Klarna's shopping app as an acquisition channel rather than only a payment optionnot Braintree

Where each one falls short

Documented limitations, not opinions. Every one is a constraint you would hit in normal use.

Braintree

  • The merchant relationship sits with PayPal, whose risk operations can place reserves on or hold funds in accounts they flag, and appeals run through support queues, so a business with thin working capital carries real exposure to a decision it cannot negotiate.
  • Cross-border transactions and currency conversion carry additional charges on top of the headline rate, so an international customer base costs materially more per order than the quoted percentage suggests.
  • Disputes carry a per chargeback fee in addition to the reversed transaction amount, so a category with a high dispute rate loses money at roughly twice the rate a naive model predicts.
  • Leaving means requesting a vault export to another PCI compliant processor and then re-tokenising every stored card and every active subscription, which is an engineering project with a customer-visible failure mode if any subscription fails to migrate.
  • It is a payments component rather than a commerce platform, so checkout, tax determination, invoicing and refund workflow still have to be built and maintained somewhere else, and merchants who assume otherwise underestimate the integration.

Klarna

  • Merchant fees for the short-term products run around 5.99% plus a fixed fee in the United States, roughly double a standard card rate, so unless Klarna measurably lifts average order value or conversion it is a straight margin loss.
  • Rates are negotiated and unpublished, which means small merchants pay the standard rate while large ones negotiate down, and you cannot benchmark what you are being charged without going to market.
  • Returns and partial refunds are handled through Klarna's systems rather than your payment processor, so your finance team reconciles a second settlement flow and customer service handles a second dispute process.
  • Buy now pay later is being brought under consumer credit regulation in the UK, the EU and Australia, which is already changing affordability checks and disclosures; the checkout experience that converts today may be legally required to add friction.
  • Klarna owns the post-purchase relationship, sending payment reminders and marketing in its own name, so a shopper who has a poor collections experience associates it with your brand while you have no control over the messaging.

Pricing, plan by plan

Braintree

On request

No published plan breakdown. See the Braintree review.

Klarna

On request
  • Klarna for Business$undefined/year
    • Per-transaction percentage plus a fixed fee, negotiated by merchant
    • No published rate card; rates vary by market, product and volume
    • Short-term products priced materially above card interchange

Which should you pick?

Choose Braintree if

  • You need card processing.
  • You also want paypal and venmo acceptance.
Braintree review

Choose Klarna if

  • You need pay in 4.
  • You work on Web, iOS, Android.
  • You also want pay in 30 days.
Klarna review

Questions people ask

Is Braintree or Klarna better?
Neither clearly leads. Braintree starts at On request and Klarna at On request, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Braintree or Klarna?
Braintree starts at On request and Klarna at On request.
Does Braintree or Klarna run on more platforms?
Braintree runs on Web. Klarna runs on Web, iOS, Android.
What is Braintree best used for?
Braintree is most often used for a united states consumer brand that wants venmo in the checkout rather than as an off-site redirect, a subscription business that needs a vault and recurring billing alongside wallet acceptance, a marketplace splitting each payment between the platform and multiple sellers, a merchant consolidating card and paypal acceptance into a single integration and a single settlement. Of those, a united states consumer brand that wants venmo in the checkout rather than as an off-site redirect and a subscription business that needs a vault and recurring billing alongside wallet acceptance are not what Klarna is typically brought in for.
What can Braintree do that Klarna cannot?
Braintree covers Card processing, PayPal and Venmo acceptance, Digital wallets, Hosted fields. Klarna covers Pay in 4, Pay in 30 days, Longer-term financing, Klarna app placement.

Answered from the vendors’ own pages

Braintree: How is it different from using PayPal directly?

Braintree gives you a full processing account and a native checkout with cards, PayPal and Venmo in one integration, rather than a redirect flow bolted onto a separate card processor.

Klarna: What does Klarna cost a merchant?

Klarna does not publish a rate card. In the United States most merchants pay around 5.99% plus $0.30 for short-term products, with longer-term financing nearer 3.29% plus $0.30, and large merchants negotiate lower.

Braintree: Is Venmo the main reason to choose it?

For United States consumer brands, frequently yes. It is the practical route to native Venmo acceptance, and no competing processor offers an equivalent.

Klarna: Does the merchant carry the credit risk?

No. Klarna pays the merchant the full amount less fees and takes the risk of the shopper not paying.

Braintree: What does it actually cost?

A percentage plus a fixed fee per transaction on standard accounts, with interchange-plus available at volume. Add cross-border and currency conversion charges, plus a fee per chargeback, before comparing.

Klarna: Can I use Klarna alongside my existing processor?

Yes. It is normally added as an additional payment method through Shopify, Adyen, Stripe or a direct integration rather than replacing your card acquirer.

Braintree: How hard is it to switch away later?

Harder than most merchants expect. The vault export to another compliant processor is possible but every stored card and subscription has to be re-tokenised and tested.

Klarna: Is Klarna still independent?

Yes. It listed on the New York Stock Exchange in September 2025 and holds a Swedish banking licence.

Braintree: Can PayPal hold my money?

Reserves and holds are a documented part of PayPal's risk management. Ask about reserve policy for your category and volume before you migrate revenue onto it.

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