Accept Klarna payments

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Last updated: Nov 11th, 1:58am

Klarna is a leading global alternative payment method that enables merchants to offer flexible payment options including buy now, pay later (BNPL) solutions. Through PayPal's integration, merchants can provide buyers with immediate purchasing power while receiving guaranteed payment authorization, creating a seamless checkout experience that drives conversion and buyer satisfaction.

Countries

Payment
type

Payment
flow

Settlement
currency

Minimum
amount

Refunds

See Supported countries

Buy now, pay later (BNPL)

Deferred payment

Local currency (same as presentment)

Varies by market and payment option. See Payment amount limits.

Yes, full or partial refunds up to 365 days

Key features

  • Guaranteed settlement: Receive upfront payment with no risk while buyers enjoy flexible payment timelines, protecting your business from payment defaults.
  • Flexible payment options: Boost conversion rates by offering popular choices like Pay in 4, Pay in 3, or Pay Later with regional variations that meet buyer preferences.
  • Market expansion: Grow your business in key markets through Klarna's strong adoption in Nordics, UK, and DACH markets.
  • Streamlined checkout: Reduce cart abandonment with pre-filled buyer details and preferred payment options that minimize friction.
  • Simplify integration: Start accepting payments quickly with minimal development effort through PayPal's unified payment platform and streamlined onboarding process.

How it works

  1. Buyer: Selects Klarna at the merchant's checkout page.
  2. Merchant | Partner: Creates an order using PayPal's Orders v2 API with Klarna as the payment source.
  3. PayPal: Sends order ID and payer-action link.
  4. Merchant | Partner: Redirects the buyer to the payer-action link.
  5. Buyer:
    1. Authenticates with Klarna
    2. Selects payment option (Pay in 4, Pay in 3, or Pay Later)
    3. Approves transaction
  6. PayPal: Redirects buyer to merchant's return_url after approval.
  7. Merchant | Partner: Completes the payment:
    1. Automatic flow: Captures the authorized payment
    2. Manual flow: Authorizes first, then captures
  8. PayPal: Settles funds to merchant's PayPal account.
  9. Merchant | Partner: Fulfills order and notifies buyer.

Buyer flow

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Eligibility

  • Account type: Verified PayPal Business account required.
  • Geographic availability: Available to merchants in Nordics, UK, DACH, and North America. For more information, see Supported countries.
  • Legal compliance: Must meet regional legal and privacy requirements. See Legal and privacy requirements.