Klarna is a Swedish financial technology (fintech) company that provides online payment solutions for consumers and merchants. It was founded in 2005 and has since become one of the largest fintech companies in Europe, with operations in over 17 countries.
Klarna offers a variety of payment options, including “Pay later,” “Slice it,” and “Pay now.” The “Pay later” option allows customers to buy items online and pay for them at a later date, typically within 30 days of the purchase. The “Slice it” option allows customers to spread the cost of their purchase over several months with interest-free payments, while the “Pay now” option allows customers to pay for their purchase immediately.
To use Klarna, customers typically select the payment option they want at checkout on a merchant’s website. They then provide their personal and payment information to Klarna, which processes the payment and provides the merchant with the funds. Klarna also offers a mobile app that allows customers to manage their payments and keep track of their purchases.
Klarna has become popular with consumers and merchants because it offers a convenient and flexible payment solution that can help increase sales and customer loyalty. However, it is important for customers to be aware of the terms and conditions of their payment plan, including any fees or interest charges, to avoid unexpected costs.
Here are some of the key features of Klarna:
- “Buy now, pay later” option: One of Klarna’s most popular features is the “Buy now, pay later” option, which allows customers to make a purchase and defer payment for up to 30 days without any interest or fees.
- Installment payments: Klarna also offers installment payment plans, where customers can spread the cost of their purchase over several months. This can be an attractive option for customers who may not be able to afford a large purchase upfront.
- Virtual credit card: Klarna provides a virtual credit card that can be used to make purchases online. The credit card details are stored in the Klarna app, which means that customers do not have to manually enter their payment information for each purchase.
- In-app payments: Klarna has a mobile app that allows customers to make payments and manage their accounts from their smartphones.
- Risk assessment: Klarna uses advanced algorithms to assess the risk of each transaction and determine whether to approve or decline a payment. This helps to minimize fraud and reduce the risk of chargebacks for merchants.
- Integration with e-commerce platforms: Klarna can be integrated with popular e-commerce platforms like Shopify, WooCommerce, and Magento, making it easy for merchants to offer Klarna as a payment option on their websites.
- Customer support: Klarna offers customer support through phone, email, and live chat, and has a comprehensive FAQ section on its website to help customers troubleshoot any issues they may encounter.
Klarna has a set of prohibited industries that are not eligible for its payment services. These industries are typically high-risk industries that pose legal, regulatory, or reputational risks to Klarna. The following is a non-exhaustive list of prohibited industries:
- Adult entertainment: Klarna does not allow payments for adult entertainment services, including pornography and strip clubs.
- Cryptocurrencies: Klarna does not allow payments for cryptocurrency purchases or trading.
- Firearms and weapons: Klarna does not allow payments for firearms, ammunition, or weapons-related products.
- Gambling: Klarna does not allow payments for online gambling or betting, including sports betting and online casinos.
- Illegal goods and services: Klarna does not allow payments for any illegal goods or services, including drugs, counterfeit products, and stolen items.
- Political or religious organizations: Klarna does not allow payments for political or religious organizations or their affiliated groups.
- Tobacco and e-cigarettes: Klarna does not allow payments for tobacco products or e-cigarettes.
It is important to note that Klarna’s prohibited industries list may change over time, and the above list is not exhaustive. Additionally, Klarna may have additional restrictions based on specific geographic regions or local laws and regulations.