Klarna
Overview
Klarna Bank AB, commonly referred to as Klarna, is a Swedish fintech company that provides online financial services such as payments for online storefronts and direct payments along with post-purchase payments.
It was founded in Sweden in 2005 and it's currently used in nearly 20 countries by almost 90 million shoppers. By using the Klarna mobile app you can secure small loans at checkout for both online and in-store purchases.
This guide requires familiarity with Accepting payments.
Availability
The Klarna solution offered by Verifone is available to shoppers in Sweden, Norway, Finland, Denmark in these currencies: DKK, EUR, NOK, SEK.
Benefits
- Merchants can increase sales and conversion rates as Klarna is one of the leading payment solutions in the Nordic countries
- Merchants can reduce costs by using the same payment provider for in-store, in-app, and online
- Merchants can offer shoppers the option to choose from different payment options that suit their needs and increase sales
- Simplify payment acceptance across in-store, in-app, and eComm channels for merchants
- Provide a seamless payment experience for end-consumers across all channels
- Provide an end-to-end solution for the entire Klarna Merchant Journey.
Workflow
Verifone processes B2C payments with Klarna via Intercard (i.e. Verifone is involved in the funds' flow) and provides the transaction reporting.
If you're already using Verifone's Hosted Checkout, once you activate Klarna as a payment method, the payment option will be displayed in your shopping cart. When your shoppers choose to pay with Klarna, they are redirected to Verifone’s Hosted Payment Page and shoppers will follow the payment flow to finalize their purchase. Then, Verifone returns the transaction response/confirmation to you.
Through Klarna, merchants can offer shoppers multiple payment options that will increase their sales:
- Buy now, pay later
| Payment options | Products | Availability |
|---|---|---|
| Buy now pay later | Slice It In 6/12/24/36 months | EMEA |
| Pay in 3 installments | Pay in 3 interest-free-installments - card payments | UK, FR, ES, IT and PT |
| Pay in 4 installments | Pay in 4 interest-free-installments - card payments | US |
- Financing (up to 36 months to pay)
Klarna checkout flow
Pay now Flow
A shopper who chooses to pay at the time of the purchase (pay now option) can do so either through Online Banking Transfer or Direct Payment.
Pay now with Online Banking Transfer
1. Shopper selects one of the Klarna products from the checkout page.
2. Click the Online Bank Transfer button and click Continue.
3. Enter the billing details that are the same as the shipping details and click Continue.
4. Verify and update your details by clicking the Edit button. Then click Continue.
5. View the pop-up page and click Continue.
6. Choose one of the banks displayed on the screen. If none of the banks displayed are available, click the Show more banks drop-down menu to select the bank where you have your account.
An error may appear if the bank is not supported in your country or province/city.
7. Enter the bank User ID and PIN and click Next.
8. Select the account from which you want to pay and click Next.
9. Type the security code to confirm the transaction.
10. Click Continue with payment if you want to continue or select one of the reasons form drop drown menu and click Cancel payment.
11. On the Thank you page, click Continue back to store if you want to be redirected to the merchant's store.
Pay now with Direct Payment Flow
1. After having selected Pay now, click the Direct Payment with card button, fill in the card details and click Continue.
2. Enter the billing details that are the same with the shipping details and click Continue.
3. Verify the details and click Edit to update them or click Continue to move on with the purchase flow.
4. Wait 3 seconds to be redirected to the Thank you page or click Continue.
5. On the Thank you page, click Continue back to store to be redirected to the merchant's store.
Buy now, pay later Flow
1. After having selected the Pay later flow, click one of the payment options and click Continue.
2. Enter the billing details (the same with the shipping details) and click Continue.
3. Verify the details and click Edit to update them or click Continue to move on with the purchase flow.
4. Wait 3 seconds to be redirected to the Thank you page or click Continue.
5. On the Thank you page, click Continue back to store to be redirected to the merchant's store.
Slice it Flow
1. After having selected the Slice it flow, click one of the payment options and click Continue.
2. Enter the billing details (the same with the shipping details) and click Continue.
3. Verify the details and click Edit to update them or click Continue to move on with the purchase flow.
4. Wait 3 seconds to be redirected to the Thank you page or click Continue.
5. On the Thank you page, click Continue back to store to be redirected to the merchant's store.
Pay in 4 Installments Flow
Step 1: Shopper selects the Buy now, pay later Klarna product, and then selects 4 interest-free installments.
The cost of the purchase will be split in 4 easy payments, made every 2 weeks.
The first payment is charged at the checkout and the remaining 3 payments will be automatically collected every 2 weeks.
Step 2: Enter the billing details which are the same with the shipping details and click Continue.
Step 3: Shoppers can view the details and click the Edit button if they want to edit the details or they can click Continue.
These details will be requested by Klarna if the merchant didn't received one of all the Klarna required customers details.
Step 4: View the pop-up page, wait or click Continue.
Step 5: Shoppers can view the thank you page and click Continue back to store button that will redirect them to the merchant's store.
Integrate Klarna
You can accept payments through Klarna via:
- Checkout (Hosted Payments Page - HPP)
- Pay by Link
- Verifone's eComm API
Payment actions
You can perform the following payment actions using Klarna, either via Verifone Central or via the Verifone eComm API.
Reporting
You can see and export transaction reports, 3DS transaction reports, and settlement reports for the Klarnapayment method right from your Verifone Central account.
