Klarna: the flexible payment solution to grow your business
What is Klarna?
Klarna is a global payments network and shopping assistant that fundamentally changes how consumers interact with their favorite brands. Operating in over 26 countries with more than 118 million active users, Klarna is widely recognized for pioneering the « Buy Now, Pay Later » (BNPL) model. It allows shoppers to purchase items immediately and pay for them later through interest-free installments, 30-day deferred payments, or longer-term financing. For merchants, Klarna acts as a powerful growth engine that assumes all consumer credit risk while paying the business upfront, bridging the gap between consumer purchasing power and merchant revenue goals.
How does Klarna work?
The process is designed to be completely frictionless for both merchants and shoppers:
- At checkout: when a customer is ready to buy on your PrestaShop store, they simply select Klarna as their payment method.
- Payment selection: the customer chooses their preferred payment plan (e.g., Pay in 4, Pay in 30 days, or monthly financing) depending on what is available in their region.
- Instant approval: Klarna runs a rapid, background check to instantly approve the transaction without slowing down the checkout experience.
- Upfront merchant payout: once the order is confirmed, Klarna pays the merchant the full purchase amount upfront.
- Customer repayment: the customer then repays Klarna over time according to their chosen schedule. Klarna handles all payment collection, so merchants never have to chase invoices.
Why choose Klarna?
Increase your Average Order Value (AOV)
When shoppers know they can spread the cost of their purchases over time, they are much more likely to add more items to their cart or upgrade to premium products. Merchants offering Klarna’s flexible payment options consistently report a significant uplift in AOV, helping turn browsers into high-value buyers without relying on heavy discounting.
Klarna is more than a payment gateway; it is a shopping ecosystem. With millions of active users heavily relying on the Klarna app to discover new brands and track deliveries, integrating this module gives your PrestaShop store increased visibility and access to a massive demographic of Gen Z and Millennial shoppers.
Offering financing options used to mean taking on risk—but not with Klarna. Whenever a customer chooses to pay later or in installments, Klarna pays the merchant upfront and in full. Klarna takes on 100% of the credit risk and handles all the consumer payment collection, meaning you never have to worry about fraud, chargebacks from unpaid installments, or chasing invoices.
Klarna’s checkout process is incredibly smooth. Returning Klarna users can complete their purchase with just one click, bypassing the need to enter lengthy card details. This radically reduces cart abandonment rates and provides the kind of modern shopping experience today’s consumers expect.
Key features of Klarna
Allow customers to split their purchase into interest-free installments charged automatically to their card.
Let shoppers try before they buy, with up to 30 days to complete their payment, interest-free.
Offer extended payment plans (up to 36 months) for high-ticket items.
Accept instant, frictionless payments via direct bank transfer or card.
Comprehensive risk management where Klarna absorbs all fraud and credit liabilities.
Key outcomes for PrestaShop Merchants
- Increased conversion rates: reduce hesitation at the final checkout step by offering localized, flexible payment terms that match consumer financial preferences.
- Lower customer acquisition cost (CAC): gain exposure through Klarna’s marketing channels, including their app and CRM campaigns, driving high-intent traffic directly to your storefront.
- Enhanced brand loyalty: Shoppers appreciate the flexibility and transparency of Klarna. Offering it builds trust and encourages repeat purchases.
- Streamlined back-Office management: easily capture, refund, and manage all Klarna orders directly from your PrestaShop admin panel without needing to log into a separate dashboard.
What are Klarna's fees?
Klarna provides a transparent, pay-per-transaction pricing structure with no setup or hidden monthly subscription fees. Because Klarna pays you upfront and assumes all the credit risk, the fee acts as an all-in-one payment processing and fraud protection cost.
Rates vary depending on your country and the specific Klarna product your customer uses. Here are typical examples of merchant fees for standard setups for the Pay in 3 or 4 installments:
- United States: 5.99% + $0.30
- Europe example: In countries like France or Italy, the standard rate for splitting payments is generally around 3.99% + €0.20 per transaction.
- United Kingdom example: For the « Pay in 3 » option, standard merchant pricing is typically 4.99% + £0.20 per transaction.
- Nordics: This region has lower fees at 2.79% + 1% due to Klarna’s market penetration and different banking regulations.
(Note: high-volume PrestaShop merchants processing significant revenue may be eligible for customized, lower rates negotiated directly with Klarna).
Klarna vs other payment gateways
Building the perfect checkout means offering choices that complement one another. Here is how Klarna fits into your broader payment strategy alongside other major PrestaShop partners:
💡 Pro Tip for PrestaShop Merchants: The most profitable checkout is a diversified one. By combining Klarna (for customers wanting to split payments) with PayPal (for shoppers seeking ultimate security and speed through their trusted wallet) and Stripe (for seamless direct card payments), you ensure that no customer abandons their cart due to a lack of their preferred payment method.
How to integrate Klarna on PrestaShop?
Visit the Klarna business portal to sign up. Provide your company details to get verified and access your API credentials.
Go to the PrestaShop Marketplace and download the « Klarna Official » module. Install it directly from your PrestaShop back office.
Enter your Klarna API keys in the module configuration. You can customize how Klarna’s messaging (like « Pay later in 30 days ») appears on your product pages and in the cart to maximize shopper awareness early in the buying journey.
Do I get paid immediately if a customer chooses to pay later?
Is Klarna secure for my business?
How long does it take to receive funds from Klarna?
How are refunds handled with Klarna?
Can I accept international payments with Klarna?
Do I need a registered company to use it?
Does Klarna affect credit score?
Stop losing sales to cart abandonment and price hesitation. Give your customers the financial freedom they desire and watch your Average Order Value grow. Add the world's leading Buy Now, Pay Later network to your store today.