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E-Commerce · head to head

Klarna vs Medusa

Klarna logo

Klarna

E-Commerce

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

From
On request
Rated
-
Full reviewWebsite
Medusa logo

Medusa

E-Commerce

Open source Shopify alternative

From
$29/month
Rated
-
Full reviewWebsite

The short version

  • Each has a real cost: 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.; Medusa the managed cloud meters four separate resources: edge requests, emails, compute hours and database storage
  • They diverge on capability: Klarna covers Pay in 4, Medusa covers Open source.
  • Prices and features above were last checked on 31 August 2026.

Where they differ

Only the attributes on which Klarna and Medusa actually diverge.

Attributes where Klarna and Medusa differ
AttributeKlarnaMedusa
Starting priceOn request$29/month
Pricing modelquotesubscription
PlatformsWeb, iOS, AndroidWeb
FoundedUnknown2020

Identical on both: 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 Klarna

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

Only in Medusa

  • Open source
  • Modular architecture
  • Multi-region support
  • Plugin system
  • Admin dashboard
  • Order management
  • Inventory tracking
  • Payment integrations

What people use each for

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

Klarna

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

Medusa

  • Building a custom ecommerce backend on an open source headless platformnot Klarna
  • Running a self hosted or managed commerce API with a custom storefrontnot Klarna

Where each one falls short

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

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.

Medusa

  • The managed cloud meters four separate resources: edge requests, emails, compute hours and database storage
  • The Develop plan at $29 a month applies a hard limit of 1,000 emails, so it stops rather than bills
  • Compute hours are capped at 600 on Develop and 800 on Launch
  • Edge request overage is $0.3 per million and storage $0.5 per GB month above the plan allowance
  • Background workers and priority support require the Scale plan at $299 a month

Pricing, plan by plan

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

Medusa

$29/month
  • Develop$29/month
    • Base cloud hosting
    • Commerce features included
    • No GMV-tax
  • Launch$99/month
    • Enhanced features
    • No GMV-tax
  • Scale$299/month
    • Advanced features
    • No GMV-tax
  • Enterprise$null/custom
    • Custom configuration

Which should you pick?

Choose Klarna if

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

Choose Medusa if

  • You need open source.
  • You also want modular architecture.
Medusa review

Questions people ask

Is Klarna or Medusa better?
Neither clearly leads. Klarna starts at On request and Medusa at $29/month, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Klarna or Medusa?
Klarna starts at On request and Medusa at $29/month.
Does Klarna or Medusa run on more platforms?
Klarna runs on Web, iOS, Android. Medusa runs on Web.
What is Klarna best used for?
Klarna is most often used for a fashion or furniture retailer with average order values high enough that a 3% fee uplift is repaid by a larger basket, a merchant selling to younger shoppers who have low credit card penetration and would otherwise abandon at checkout, a european retailer wanting a single hosted checkout that handles instalments, invoice and card in one flow, a brand that wants distribution inside klarna's shopping app as an acquisition channel rather than only a payment option. Of those, a fashion or furniture retailer with average order values high enough that a 3% fee uplift is repaid by a larger basket and a merchant selling to younger shoppers who have low credit card penetration and would otherwise abandon at checkout are not what Medusa is typically brought in for.
What can Klarna do that Medusa cannot?
Klarna covers Pay in 4, Pay in 30 days, Longer-term financing, Klarna app placement. Medusa covers Open source, Modular architecture, Multi-region support, Plugin system.

Answered from the vendors’ own pages

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.

Medusa: What does Medusa charge for additional team members?

Additional seats on the Medusa Cloud development platform cost $30 per seat per month. Unlimited users can access the Medusa Admin Dashboard at no additional cost for commerce operations.

Source
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.

Medusa: Are there usage-based charges beyond the base Medusa plan price?

Yes. Beyond base plan costs, Medusa charges for edge request overages at $0.30 per 1M requests, email overages at $0.70 per 1,000 emails, data transfer at $0.125 per GB, and database storage at $0.50 per GB-month.

Source
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.

Medusa: Can I cancel my Medusa subscription at any time?

Yes, users can cancel their Medusa subscription anytime. Plans are billed monthly in advance, with flex usage charges from the previous month added to the next invoice.

Source
Klarna: Is Klarna still independent?

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

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