Klarnavs
Stripe
Stripe: If you want one processor for cards and instalments with published rates rather than a negotiated BNPL contract
Klarna
Buy now pay later and instalment checkout for online and in-store merchants
As of 31 August 2026, Klarna's pricing is not published; the vendor quotes on request. A Swedish payments company that pays merchants up front and takes the credit risk on the shopper, in exchange for a transaction fee several times higher than a card rate. Softwr lists it under E-Commerce. Klarna is made by Klarna Bank AB, available on Web, iOS, Android.
Overview
What Klarna does
Klarna is a payment method merchants add at checkout that lets a shopper split a purchase into instalments, pay in 30 days, or take longer-term financing. Klarna settles with the merchant for the full amount minus its fee, and carries the consumer credit risk and collections itself. It operates in around 26 markets, holds a Swedish banking licence, and listed on the New York Stock Exchange in September 2025. The distinguishing thing is that Klarna is a demand channel as much as a payment method. Its shopping app and price comparison surfaces route shoppers to merchants that accept it, and merchants can buy placement in that ecosystem. That is why Klarna can charge merchant fees in the region of 5.99% plus $0.30 in the United States for its short-term products, against roughly 2.9% plus $0.30 for a card. Merchants accept the difference because average order value and conversion rise; if they do not rise enough in your category, the maths simply does not work. Buyers are consumer retailers with discretionary, considered purchases: fashion, furniture, electronics, travel, home improvement. The trade-off is margin and regulatory exposure. Klarna is expensive per transaction, it changes your returns and refunds handling, and buy now pay later is under active regulatory tightening in the UK, the EU and Australia, so the consumer-facing terms you sign up to today may be reshaped by rules rather than by Klarna.
What people use it 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
Related searches
The honest half
Where it falls short
Concrete and checkable, so you can decide whether any of them matter to you. This is the half of a review a vendor will not write about 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.
Cross-shopped
What people choose instead of Klarna
Each pairing was judged by two reviewers asking whether a buyer would genuinely weigh the two against each other. The ones that failed were deleted rather than published.
- KlarnavsAdyen
Adyen: If you are an enterprise merchant wanting interchange-plus pricing and BNPL methods under a single acquiring contract
- KlarnavsShopify
Shopify: If you are already on Shopify and want instalments through the native checkout without a separate merchant agreement
Pricing
What Klarna costs
Taken from the vendor's own pricing page. Prices move, so check before you buy.
Klarna for Business
On request
- 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
- Longer-term financing typically carries a lower merchant rate
- No monthly platform fee in most markets
Capabilities
Features
Pay in 4
Splits an order into four interest-free instalments, with Klarna paying the merchant up front
Pay in 30 days
Shopper receives goods and pays later, with Klarna carrying the non-payment risk
Longer-term financing
Monthly financing over 6 to 36 months, usually at a lower merchant rate than short-term products
Klarna app placement
Merchant listings and promotional slots inside Klarna's consumer shopping app
Klarna Checkout
A hosted full checkout, not just a payment button, available in selected European markets
In-store payments
One-time virtual cards and QR flows for physical retail
On-site messaging
Instalment price displays on product pages, which is what actually drives the conversion uplift
Merchant portal
Settlement reporting, disputes, refunds and order management
Answered, with sources
Questions people ask
Each answer names the page it came from, so you can check it rather than take our word for it.
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.
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.
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.
Is Klarna still independent?
Yes. It listed on the New York Stock Exchange in September 2025 and holds a Swedish banking licence.
Keep looking
Where to go from Klarna
- Klarna alternativesEvery product people weigh against it
- Klarna pricingPlans, floors and what the tiers exclude
- Klarna badgesWhich rules it meets, and the figure behind each
- All E-Commerce softwareThe full category
- Best E-Commerce softwareThe shortlist, and how it was cut
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Softwr does not host reviews and shows no star rating for Klarna, because a rating we did not collect is not ours to publish. What is here is the pricing and platform detail from the vendor’s own pages, limitations we could state concretely, and alternatives a reviewer confirmed people weigh against it. Tell us if any of it is wrong.
More on Klarna
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Klarna badge
Its rating, and an embed for your own site
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