Klarna payments in Austria, Germany, and Sweden

Using Klarna on Shopify Payments provides a safe and easy checkout experience for your customers with multiple payment options. Your customers can choose to pay for their orders immediately, by invoice, or through installments using direct debit or credit card.

Activate Klarna

To use Klarna payments, you must set up Shopify Payments first. Klarna reviews your business details before you can accept payments using Klarna Pay Later, Klarna Pay Now, or Klarna Pay in 3. When Klarna reviews your business, you receive an update in the Payments section of your Shopify admin. Then customers can check out using Klarna payment options.

You can adjust which possible Klarna options are available to customers at any time.

Steps

Desktop
  1. From your Shopify admin, go to Settings > Payments.

  2. In the Shopify Payments section, click Manage.

  3. In Payment methods, toggle Klarna to activate the payment method.

  4. Click Save.

iPhone
  1. From the Shopify app, tap the button, and then tap Settings.
  2. In the Store settings section, tap Payments.
  3. In the Shopify Payments section, tap Manage.
  4. In Payment methods, toggle Klarna to activate the payment method.
  5. Tap Save.
Android
  1. From the Shopify app, tap the button, and then tap Settings.
  2. In the Store settings section, tap Payments.
  3. In the Shopify Payments section, tap Manage.
  4. In Payment methods, toggle Klarna to activate the payment method.
  5. Tap Save.

Payments with Klarna

When a customer places an order and uses a Klarna payment option to pay, the funds are paid to you in your next Shopify Payments payout.

Klarna works differently with Shopify Payments than the usual checkout process. For example, if a customer pays using Klarna Pay Later, then they arrive at Klarna's checkout page to create a new account or log in to an existing one. The payments are handled directly within the Klarna interface, and not through your store checkout. If the customer has any issues or questions, then they must contact Klarna directly. You're paid as usual within Shopify Payments.

If you refund a transaction processed by Klarna, then the processing fee charged to you by Shopify Payments isn't refunded. Processing fees are determined by the subscription plan on your Shopify account. For more information about Shopify Payment fees, refer to the Shopify Pricing page for your location.

Klarna allows refunds to be processed within 180 days of the initial charge of an order. If 180 days have passed from the date of the initial charge, then it's no longer possible to refund through a Klarna payment option. If you want to refund an order after 180 days, then work with the customer to return the funds to them using an external service.

If a chargeback is opened against an order, then the customer is encouraged to contact you directly. Klarna contacts the customer if the dispute isn't resolved after 21 days. Klarna then contacts you by email about the dispute and provides you with the Klarna order number. You can use the Klarna order number in your Shopify admin to find your order. You have 7 days to respond to the dispute notification from Klarna.

Offering Klarna Payment options to your customers

The Klarna payment options you can offer your customers depends on which Shopify Payments region you're located in.

Klarna availability per region
RegionPay in 3Pay LaterPay NowSlice It/Financing
Austria
Germany
Sweden

Regions where customers can pay using Klarna

Klarna payment options are displayed at checkout to customers in the EEA, UK, and Switzerland. If you have a Market set up in any of the following currencies, then customers from that region can check out in their local currency using Klarna:

  • Euro (EUR)
  • Great British Pound (GBP)
  • Norwegian Krone (NOK)
  • Danish Krone (DKK)
  • Swedish Krona (SEK)

Klarna Pay Later

Klarna Pay Later is an invoicing payment method for Shopify Payments. When a customer selects Klarna Pay Later as their payment method, they agree to pay for their purchase at a later date. The customer can sometimes choose between a two-week or a two-month pay-back schedule. Klarna pays for the order immediately and the funds are included in your next Shopify Payments payout.

Capturing payments manually with Klarna Pay Later

In your payment settings, you can choose to capture payments automatically when an order is placed, or to capture them manually within 28 days of an order. By default, your payments are captured automatically. When you capture a payment, the funds are provided to you immediately by Klarna, and a link is emailed to the customer. The customer uses the link to pay Klarna for their order. They have up to 14 days to pay, depending on their offer at checkout.

After receiving their order, a customer also has up to 14 days to decide whether they want to keep it. If you offer your customers the option to pay with Klarna, then set your payment settings to capture payments manually and wait to capture a payment until after the order is fulfilled. If you use this workflow, then the customer receives their payment link close to when they receive their order, and the 14 days that they have to pay closely match the 14 days they have to decide to keep the order. In addition to manual payment capture, clearly communicating your delivery timelines can be a valuable tool to make sure that customers are aware of any possible issues that might not perfectly align with this method of payment.

You can change the way that you capture payments in the Payments section of your Shopify admin. The manual capture option applies to all payments, not just those from Klarna.

From the time the order is placed, you have until midnight Coordinated Universal Time (UTC) on the 28th calendar day from when the order was placed to capture the payment. If you don't capture the payment within that time, then the payment expires and becomes void.

For example, if a customer places an order on January 1 at 14:00, then the payment authorization period expires on January 28 at midnight UTC.

Klarna Pay Later customer experience

After the customer selects Klarna Pay Later, they're redirected to Klarna's website to choose when to pay for their order.

If a customer accidentally transfers the remaining balance directly to you instead of Klarna, then you must cancel and refund the order. Then, replace the order with a duplicate draft order marked as paid (as the full amount has already been paid to you by the customer) and archive the order. This lets Klarna receive a refund and cancel their own invoice. It also ensures that your sales stats and inventory are returned to the correct figures.

If you don't follow this process, then Klarna continues to pursue the customer for the missing funds. Your customer is charged an additional fee if they choose a longer period of time to pay for their order.

Klarna Pay Now

Klarna Pay Now lets customers pay for their order using their online banking details. Klarna Pay Now connects with the customer’s bank account and the funds are immediately debited from their bank account. You receive the funds in your next payout.

Regions that can receive payments using Klarna Pay Now

Klarna Pay Now is available only to merchants in Austria who sell in euros, and to merchants in Sweden who sell in Swedish krona or euros.

Capturing payments manually with Klarna Pay Now

You can manually capture your authorized Klarna Pay Now payments. If you have configured your settings to capture funds manually, then you don't automatically receive money from orders paid for with Klarna Pay Now. To get paid, capture the payment manually as soon as it's authorized. When you capture your payment manually, you're charged the Shopify Payments processing fee based on the amount captured at that time.

Klarna Pay Now customer experience

After the customer selects Klarna Pay Now, they're redirected to Klarna's website to pay for their order. The Klarna website prompts your customer to sign up with their credentials if they're using this payment option for the first time, or sign in to their account and use their linked bank account to pay for the order.

Klarna Pay in 3

Customers can pay for their purchase in three interest-free payments. The total transaction amount is typically spread equally across the installments, but Klarna might occasionally charge your customer more in the first installment based on the customer’s purchasing power and other credit factors.

Capturing payments manually with Klarna Pay in 3

You can manually capture your authorized Klarna Pay in 3 payments. If you've configured your settings to capture funds manually, then you don't automatically receive money from orders that are paid for with Klarna Pay in 3. To get paid, capture the payment manually as soon as it's authorized. When you capture your payment manually, you're charged the Shopify Payments processing fee based on the payment amount captured at that time.

Klarna Pay in 3 customer experience

If your customer selects Klarna Pay in 3, then they're redirected to Klarna's website to pay for their order. The Klarna website prompts your customer to sign up with their credentials if they're using this payment option for the first time, or sign in and use their linked bank account to pay for the order.

Klarna advises the customer of their payment schedule by email after they've completed the purchase on your checkout. Your customer is charged for the first installment, and then for subsequent installments according to their payment schedule.

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