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How do businesses use Klarna?

Mar 02 - 2022

How do businesses use Klarna?

Klarna goes far beyond the responsibilities of dealing with ordinary payment gateways. In addition to authorizing (or denying) transactions, Klarna provides customers with the ability to choose between different payment plans. Merchants receive payment immediately after the sale. Klarna handles default risk and collects funds from clients.

What fees does Klarna charge merchants?

In general, Klarna's business model is to charge merchants and only minimally charge customers. Klarna offers three payment plan options and charges merchants different amounts.

The first option is paid in four interest-free installments.

This option sounds like. Instead of paying interest, customers pay it four times over an 8-week period. This equates to a Klarna payment gateway. Businesses should pay "variable costs" of up to 5.99%, plus a fixed cost of 30 cents per transaction.

Second Choice - Payment within 30 days.

Customers have a 30-day window during which they can return items for free. Customers will not be charged a pre-return charge after the 30-day window. Merchant's fee categories are the same as Four Interest-Free Installments: Variable Fees, up to 5.99%, plus a flat fee of 30 cents per transaction.

Third option - 6-36 month financing.

Customers are directed to Klarna's financial partner, WebBank, for longer-term, better-value loans. Businesses pay a "variable cost" of up to 3.29%, plus a fixed cost of 30 cents per transaction.

Which businesses can register with Klarna?

Businesses can register with Klarna on their business portal. Like other financial institutions, Klarna has a process of screening new business. Not all businesses and all transactions are eligible to use Klarna. Klarna doesn't list their requirements for merchants directly on their website, but they do publish some rules. Below is a quick summary of the types of merchants Klarna accepts.

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Google Pay is accepted by Klarna?

In the Klarna app, look up the store and create a digital card to make your purchase. When paying at the register, tap for contactless payment by adding the card to your Google Pay wallet (or Apple Pay for iPhone users).

How do payments on Klarna work?

How does Klarna function? Pay in 4, Klarna's most well-liked payment option, enables customers to divide their purchase into four equal payments, the first of which is due at checkout and is due every two weeks. If your purchase costs $200, for instance, you would pay $50 at the register.

Do 6 month payments work with Klarna?

You can make a purchase right immediately and pay for it later when you use a merchant that accepts Klarna. There are three main payment options offered by Klarna: installment payments, full payment within 30 days, and financing for larger purchases over a period of 6–36 months.