Klarna - the practical guide.

Klarna is a Swedish buy-now-pay-later (BNPL) provider offering pay-in-3, pay-in-4, pay-later-in-30-days and longer-term financing options at checkout. It serves 150M+ consumers globally and 500k+ merchants, and is one of the dominant BNPL options alongside Afterpay/Clearpay and Affirm. Adding Klarna at checkout is widely linked to higher conversion and AOV in fashion, home and electronics.

B2C merchants in fashion, beauty, home, furniture, electronics and travel where ticket sizes benefit from BNPL. Particularly impactful in Europe (especially Germany, Sweden, UK) where Klarna is a household name. Less relevant for low-AOV impulse goods or for B2B sellers.

Merchant fees are typically 3-6% per transaction plus a small fixed fee, depending on country, BNPL product and volume. Consumers pay no interest on pay-in-3/4 if they pay on time; longer-term financing carries APR. No platform fee for the merchant beyond transaction fees.

Right when AOVs sit in a range where instalments lift conversion (typically £40-£1,500), and your audience expects BNPL options. Strong in fashion and home. Wrong fit for very low ticket sizes (fees eat margin), B2B, or regulated categories Klarna restricts.

Klarna fees are higher than card processing - model the lift in conversion/AOV vs the cost. Consumer debt and regulatory scrutiny on BNPL is rising; expect tighter affordability rules in some markets. Refunds and disputes flow through Klarna's customer support, which can shift the customer relationship. Brand-safety: be deliberate about which categories you enable.