How does Klarna work for online payments?
The shopper chooses Klarna at checkout and is redirected to Klarna’s site. Klarna shows the payment options the shopper can use, based on their currency, the amount and the type of purchase. After the shopper picks one, Klarna returns them to the merchant to complete the order. Klarna decides whether a shopper can use it for a given purchase.
Stripe’s documentation describes four kinds of option. Pay in full takes the money straight away from a linked card, bank debit or bank transfer. Pay later is a single payment in 30 days. Pay in 3 or 4 spreads the cost over three or four interest-free payments. Financing runs for up to 36 months, may include interest and depends on a credit check. Which options appear varies by country and amount.
The merchant does not wait for the instalments. When Klarna accepts the payment, the merchant receives the whole order amount, minus fees, and Klarna collects the initial and later payments from the shopper. Stripe states that if the shopper cannot repay, Klarna takes the loss.
Refunds work in full or in part. Stripe allows refunds up to 180 days after the payment completes, usually within 5 to 7 business days. Klarna cancels any remaining instalments on a refunded order. A partial refund lowers the outstanding balance and is spread across the remaining payments. A payment cannot be refunded once it has been escalated to a dispute.
Where and how do shoppers use Klarna?
Stripe lists 23 customer countries: Australia, Austria, Belgium, Canada, Czechia, Denmark, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Spain, Sweden, Switzerland, the United Kingdom and the United States. Limits differ by market. In Germany pay later covers EUR 0.10 to 10,000, while in France, Spain, Italy, Greece and Portugal it is capped at EUR 500. Pay in 4 in the United States covers USD 1 to 2,000. Cross-border sales are limited: a business in the EEA, the UK or Switzerland can sell to shoppers across those markets in the shopper’s currency, while a business elsewhere can only sell to shoppers in its own country.
Pay later is a common habit in the Nordics. The Riksbank’s 2026 Payments Report says the single most common online payment methods in Sweden are Swish and buy now, pay later services such as Klarna. In Norway, Norges Bank found that 22% of online purchases were paid by invoice from providers such as Klarna, Collector and Svea. In the Netherlands, where iDEAL dominates, Klarna’s share of online purchases rose from 3% to 4% in 2025, according to NielsenIQ and Thuiswinkel.org.
What rules and costs should merchants know?
Disputes have their own process. A shopper files a complaint or return request in the Klarna app, and Stripe says customers have up to 180 calendar days from capture to do so. A return enquiry that is not resolved escalates to a chargeback after 21 calendar days. The merchant then has 12 calendar days to submit evidence, or 5 days for fraud disputes, and only one round of evidence is allowed.
Some businesses cannot use it. Klarna’s rules, as published by Stripe, exclude categories such as charities, political organisations and business-to-business sales, and Klarna can suspend a merchant for high dispute rates that are not promptly fixed.
Credit rules shape the checkout. In Sweden, since 1 July 2020, an online shop must show payment options without credit first and may not preselect a credit option when others exist. In the United Kingdom, the Financial Conduct Authority has regulated interest-free deferred payment credit since 15 July 2026. Lenders must check that the borrower can afford to repay and give key information before the agreement, and borrowers can complain to the Financial Ombudsman Service.
How would Omno handle Klarna?
- One checkout: Klarna would appear in the Omno hosted checkout next to cards, wallets, local methods and crypto, shown only where the shopper’s country and currency allow it. Merchants with their own payment screens would use Direct Links on their own buttons.
- Routing rules: The merchant would set rules by country, currency, amount or customer group that send Klarna payments to a connected provider that supports Klarna. Omno connects through those providers; it is not an acquirer and does not hold funds.
- Cascading: In the hosted checkout, if that provider is unavailable or rejects the request, the payment would move to the next provider in the rule that offers Klarna, until one accepts.
- Status: The final result would reach the merchant by webhook.
What should merchants plan for?
Check the limits per market. Order values above the local cap will not see every option, so keep cards and local methods next to Klarna.
Order the checkout correctly. In Sweden, put options without credit first and leave nothing preselected.
Answer return enquiries quickly. An unresolved enquiry becomes a chargeback after 21 days, and you get one chance to submit evidence.
Refund before a dispute starts. Once a payment is escalated to a dispute, it can no longer be refunded through Klarna.
Send full order data. Klarna uses the cart, amount and use case to decide which options to show.