Klarna Review for Merchants: Is Klarna Right for Your Business?

Please note that the information about the companies in this article was sourced from their respective websites as of August 2025. This information may be subject to change.

Getting paid shouldn’t be a waiting game. Yet for many merchants using Klarna, payouts can take days, fees stack up, and flexibility is limited. Klarna’s Buy Now, Pay Later tools may boost sales, but when it comes to broader payment methods, coverage gaps and slow settlements leave merchants frustrated.

This Klarna review takes a closer look at the payment provider, including how it works, where it performs well, and where it falls short. And because no payment provider exists in a vacuum, we’ll also introduce Noda, an open banking–powered alternative built for today’s merchants.

Klarna’s Pros and Cons

Klarna Overview

What is Klarna?

Klarna is a Swedish fintech company based in Stockholm. It offers flexible shopping payments, including Buy Now, Pay Later (BNPL) options like Pay in 3 or 4, Pay in 30 days, and monthly financing. Klarna serves both consumers and businesses adding Klarna to their checkout. It also provides wider business payment options.

Klarna Ownership

Klarna was founded in 2005 in Stockholm by Sebastian Siemiatkowski (now CEO), Niklas Adalberth, and Victor Jacobsson after an entrepreneurship competition at the Stockholm School of Economics. Ownership is split between venture capital firms, institutional investors, and early founders.

Klarna Revenue & Valuation

Klarna’s first profitable year was 2024, when it generated $2.81 billion in revenue with a $21 million net profit, compared to a $244 million loss in 2023. Klarna continues to report operating profitability in 2025. Klarna’s valuation stood at $14.6 billion in late 2024.

Klarna Payments: Global Coverage

Klarna’s Available Countries

Klarna is available in 26 countries listed below. To use Klarna’s full local payment options, merchants must be officially registered in the country where they operate.

Cross-border sales are possible, though extra fees may apply. All merchants must meet regional business and regulatory requirements when onboarding with Klarna.

• Australia
• Austria
• Belgium
• Canada
• China
• Czech Republic
• Denmark
• Finland
• France
• Germany
• Greece
• Hungary
• Ireland
• Italy
• Japan
• Mexico
• Netherlands
• New Zealand
• Norway
• Poland
• Portugal
• Romanis
• Spain
• Sweden
• Switzerland
• United Kingdom
• United States

Klarna’s Coverage of Currencies

Klarna supports the following currencies for accepting and settling payments:

• Australian Dollar (AUD)
• Euro (EUR)
• Canadian Dollar (CAD)
• Czech Koruna (CZK)
• Danish Krone (DKK)
• Hungarian Forint (HUF)
• Mexican Peso (MXN)
• New Zealand Dollar (NZD)
• Norwegian Krone (NOK)
• Polish Zloty (PLN)
• Romanian Leu (RON)
• Swedish Krona (SEK)
• Swiss Franc (CHF)
• British Pound (GBP)
• US Dollar (USD)

Klarna’s Language Support

Klarna offers multilingual support across its checkout, dashboard, and customer service, automatically adapting to the customer’s local language during checkout. Supported languages include:

• English
• German
• French
• Spanish
• Italian
• Dutch
• Swedish
• Norwegian
• Danish
• Finnish
• Polish
• Czech

Klarna Business Clients

Klarna has carved out a strong presence in industries that move fast and attract younger, digital-first shoppers, including fashion and apparel, electronic retailers, and household names like Walmart. Not surprisingly, its sweet spot remains e-commerce.

Klarna is built for scale but flexible enough for smaller players. It works best for businesses with healthy online traffic and steady transaction volume. Klarna restricts industries it deems high-risk or sensitive with additional due diligence.

Klarna’s Payment Gateway & Features

Here are Klarna’s payments and checkout features. Note that we are not covering Klarna’s marketing solutions.

Klarna Payment Methods

• Cards: Accepted for Pay in Full, Instalments, and Pay in 30 Days.
• Open banking: Direct payments from personal accounts, available for Pay in Full; only available in 21 countries.
• Digital wallets: Supported where available, usable for Pay in Full, select financing, and recurring payments.
• Virtual Klarna Card: Issued instantly in the Klarna app for one-time or recurring purchases, supporting Pay in Full, Pay Later, and subscriptions.

Choose Open Banking with Noda

Klarna’s open banking option is limited to just 21 countries, meaning patchy coverage, slower growth, and fewer ways to tap into one of today’s most promising payment methods: pay-by-bank.

This method removes card networks from the equation, cutting costs for merchants, delivering a smoother UX for customers, and enabling instant bank-to-bank transfers. While Klarna excels in BNPL, its open banking offer leaves much to be desired.

Read more: Why Choose Open Banking

Noda changes the game. With coverage in 28 countries and connections to 2,000+ banks, Noda gives merchants wider reach and stronger bank coverage. This means no card networks, no middlemen, no hidden costs ,processing fees from just 0.1% – and instant, secure, PSD2-compliant payments instead, fully authe nticated by your customer’s bank.

Why Merchants Choose Noda

• Instant open banking payouts: Real-time settlements to your account vs Klarna’s 2–5 day waiting times.
• Lower fees: No BNPL-style surcharges.
• Flexible integration: Payment links, QR codes for in-store, e-commerce plugins, or full API customisation.
• Personal support: A dedicated onboarding manager vs Klarna’s inconsistent customer service.

With Klarna, you’re tied to a BNPL-first model. With Noda, you unlock instant, open, bank-powered payments designed for the modern merchant.

Klarna Settlement & Withdrawals

Klarna typically settles payouts within 2–3 business days after an order is captured. In most major regions, merchants receive funds within 2–3 days.

During settlement, Klarna deducts service fees and transfers the remaining funds via bank transfer in supported currencies. Withdrawals are usually automatic to the merchant’s designated bank account on the agreed payout schedule, daily, weekly, or monthly, with payout status visible in the Klarna dashboard.

Klarna Security & Compliance

Klarna places a strong focus on security, combining advanced fraud prevention, 24/7 monitoring, two-factor authentication, AES-256 encryption, tokenisation, and regular audits to protect customers and merchants.

It is PCI DSS certified for safe handling of card data and complies with global data protection laws like GDPR and CCPA. Klarna is regulated by the Swedish Financial Supervisory Authority and, in the UK, directly supervised by the FCA under its 2025 electronic money licence, with similar oversight from regulators in all markets where it operates.

Klarna Pricing & Fees

Klarna does not publish its pricing on its official website, and previous details (such as those once listed in WooCommerce documentation) have been removed. Some insight can be found via third-party providers such as Adyen and Stripe, which offer Klarna as a payment method.

Note that BNPL is generally one of the more expensive processing methods, as providers take on the risk of customer defaults.

Read more: How to Reduce Payment Processing Fees

Klarna Customer Reviews

Klarna holds an average rating of 4.0 out of 5 on Trustpilot (based on 350,000+ reviews) and 4.1 out of 5 on G2.

• What users liked: Customers praise its user-friendly app, flexible payment options like “Pay in 4” and “Pay in 30 days,” and quick checkout.
• What users didn’t like: The main criticisms focus on slow or unhelpful Klarna’s support for its customers, unexpected payment declines, and difficulties with refunds or dispute resolution.