Klarna offers a payments platform that embeds flexible financing options—including interest‑free Pay in 4 installments, pay‑later, and longer‑term credit—into online and in‑store checkout experiences. The service manages credit underwriting, payment collection, dispute handling, and buyer‑protection workflows, delivering merchants a consolidated settlement and conversion analytics. Shoppers can track orders, manage balances, and receive cashback through the Klarna mobile app.
Funding
$1.6B raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
+27Founders
Product
Problem
Consumers often face cash‑flow constraints or prefer to spread payments, yet many e‑commerce sites only offer a single upfront payment option. This limits purchasing power, increases cart abandonment, and provides little protection if orders are delayed or defective.
Solution
Klarna operates a payments platform that embeds flexible financing directly into the checkout flow of online and in‑store merchants. Shoppers can select interest‑free “Pay in 4” installments, a “Pay later” option, or longer‑term monthly financing, all processed through Klarna’s secure gateway. The service integrates via hosted checkout, JavaScript SDKs, and native Apple Pay extensions, presenting a consistent “Klarna” badge that triggers a streamlined UI and automatic payment scheduling. Klarna handles credit underwriting, payment collection, and dispute management, while providing real‑time buyer‑protection alerts and a mobile app for order tracking, cashback rewards, and balance management. Merchants receive a single consolidated settlement and optional analytics on conversion and average order value, reducing friction and increasing repeat purchases.
Target Audience
Primary users are online shoppers seeking flexible payment terms, and e‑commerce merchants or brick‑and‑mortar retailers that want to boost conversion and average order value through embedded financing.
Features
- Hosted checkout and SDKs (JavaScript, iOS, Android) that embed Klarna’s payment options with minimal code changes
- Interest‑free “Pay in 4” installments and flexible monthly financing (0 %–35.99 % APR) backed by real‑time credit decisioning
- Apple Pay integration for in‑store and online purchases, supporting bi‑weekly or monthly payment schedules
- Klarna Debit Flex Card (Visa‑network) that extends the same financing terms to physical POS transactions
- Buyer Protection workflow that automatically pauses payments on returns, missing items, or disputes, with 24/7 fraud monitoring
- Cashback engine that credits eligible purchases to the Klarna balance, configurable per merchant promotion
- Encrypted data transmission, PCI‑DSS compliance, and tokenized storage of payment credentials
- Merchant dashboard with conversion analytics, automated settlement, and API access for order‑level reconciliation