Stripe vs Klarna Payments: Comparative Review for Merchants

Note that the information about Klarna Payments and Stripe found in this article was taken from their respective websites on 26 April 2024. This information is subject to change.

In 2024, more and more businesses facilitate online payments via payment providers. Stripe, launched in 2009 by the Collison brothers in the US, attracted early funding from high-profile names like Elon Musk and Peter Thiel, with Andreessen Horowitz remaining a key investor. Over the years, it has risen to prominence in the payment processing sector.

Meanwhile, Klarna is leading the way in terms of BNLP payments, yet the provider also has other business payment solutions and open banking. Siemiatkowski, Niklas Adalberth, and Victor Jacobsson created the idea of BNLP in Sweden in 2005. There, they founded Klarna, which was named Kreditor at the time. Since then, the company has expanded to other countries and become the leading alternative payment method.

In this article, we compare Klarna vs Stripe Payments, including their product range, pricing, coverage and integration capabilities for online merchants.

What Is Klarna and How Does It Work?

Klarna is a Buy Now Pay Later (BNLP) provider, which essentially means it’s a payment method that lets consumers buy products immediately and pay for them later. Consumers can make purchases without full payment upfront and settle their debt in instalments over a set time period.

Klarna’s payment methods offer three options:

• Instalments: Customers can choose to pay in three equal interest-free instalments.
• Pay in 30 Days: Customers can try the product before they buy it, as Klarna offers an extra 30 days to complete their payment interest-free.
• Financing: Customers can spread the cost with monthly payments, interest-free or interest-bearing, for up to 36 months.

Apart from its BNLP payment methods, Klarna also offers business solutions for payment checkout and payment processing.

Klarna vs Stripe for Online Payments

Stripe Payments enables merchants to accept payments, handle payouts, and manage accounts effectively. Merchants can tailor their checkout experiences with Stripe Elements for web and mobile platforms or use the ready-made Stripe Checkout.

Stripe Payment Links allow users to accept payments or handle subscriptions using links that can be shared widely. These links can be distributed freely through social media, emails, or other platforms.

Stripe accepts more than 100 payment methods, including credit cards, digital wallets, BNLP options, bank debits, and transfers. It provides a Payment Methods API that helps businesses integrate these options seamlessly into their systems, supporting one-click checkouts.

Stripe Connect streamlines transactions across various channels, handling both payments and payouts. The Standard Connect version gives Stripe complete control over the dashboard UI and makes it the primary contact for merchants with payment questions.

Stripe Billing enables companies to manage customer payments through methods like recurring, usage-based, and contract billing. Stripe Invoicing streamlines the creation and management of invoices for one-time payments. Additionally, Stripe offers financial tools for tax calculation, revenue recognition, data management, and customised reporting.

Klarna’s Checkout is an online payment solution that includes hosted payments. It’s pre-integrated to popular e-commerce platforms and can also be integrated directly to a merchant’s website via Javascript and RestAPI. The checkout includes Klarna’s payment methods, customer identification, and buyers’ and sellers’ protection.

Apart from its BNLP payment options that spread the cost over a period of time, Klarna also offers a quick-pay Express Button. Customers who choose this method have to log in to their Klarna account. Their information is pre-filled in the merchant’s checkout so they can buy the item with one click.

Klarna Subscriptions allows customers to pay for subscriptions. Customers can start a subscription and select their preferred payment methods, such as a bank account, a card or even an invoice. Klarna will save customer information and it’ll be pre-filled at a moment’s notice.

Stripe vs Klarna: Open Banking

In 2023, Stripe launched open banking payments for merchant customers across the UK and EU. The feature became available through the partnership with TrueLayer, and the new pay-by-bank payment option is called Payment Element. It has embeddable UI components for checkout pages.

Meanwhile, Klarna offers an open banking platform for merchants and third-party providers. Klarna’s Open Banking APIs allow users to access consumers’ account information data or initiate transfers. They can create a session and, within it, run multiple flows, such as a balance retrieval or transfer flow.

Klarna vs Stripe for In-store Payments

Stripe Terminal allows businesses to accept in-person payments by integrating Stripe with their point of sale (PoS) systems. Note that the terminal isn't a straight out-of-the-box solution and requires integration.

Klarna InStore offers merchants an integration-free Digital Card solution or their integrated QR code solution. All payments start in the Klarna app, which connects to the Klarna ecosystem of shopping services.

Stripe vs Klarna: Fees

In terms of Stripe vs Klarna pricing, the providers use fairly different approaches. Stripe openly displays its service fees on its website.

Additional fees may apply for processing multiple currencies, handling chargeback disputes, customising checkout domains, and for services such as billing, invoicing, taxation, payment links, revenue recognition, fraud prevention, identity verification, and card issuing. It is crucial to thoroughly review Stripe's detailed fee structure before selecting their services.

Klarna, on the other hand, does not reveal its full pricing structure. The provider says that their fees vary depending on the market. Card processing fees are included in all of their pricing so merchants only get charged once. There is no joining or monthly fee with Klarna, the charges are per transaction. Klarna fees will be outlined during the onboarding process and in the contract. They depend on the size of a merchant’s business.

Stripe vs Klarna: Integration & Coverage

Stripe is a global payment platform available in 46 countries, including Australia, the US, Europe, India, Japan, and the UAE. It facilitates cross-border payments in multiple currencies and serves over 195 countries.

Stripe's App Marketplace supports third-party integration, linking with software across various sectors, such as accounting, compliance, and data analytics. Additionally, Stripe offers a partnership ecosystem to improve the business use of its features.

Meanwhile, Klarna’s availability depends on the product you’re willing to use. For example, Klarna Checkout is available in Sweden, Norway, Finland, Denmark, Germany, Austria, the Netherlands, Belgium, Switzerland, the UK and the US. Klarna Checkout Global allows merchants to take orders with card payments in the following currencies: AUD, CAD, CHF, PLN, DKK, EUR, GBP, NOK, SEK and USD.

Klarna’s payment methods as individual products are available in Sweden, Norway, Finland, Denmark, Germany, Austria, the Netherlands, Belgium, Switzerland, France, Italy, Poland, Spain, Portugal, the UK, Greece, Czech Republic, the US and Australia.

Klarna In-store is available in Sweden, Norway, Finland, Denmark, Germany, Austria, the Netherlands, Belgium, Switzerland, France, Italy, Poland, Spain, Great Britain, the USA, Canada and Australia.

In terms of third-party integrations, Klarna works with all major eCommerce platforms, technology partners and payment service providers (PSPs). For example, it offers integration with Shopify, Big Commerce, and more.

Stripe and Klarna Alternatives

​​Noda is a global open banking provider that assists online merchants with end-user KYC, payment processing, LTV forecasting and UX optimisation. We partner with 2,000 banks across 28 countries, spanning over 30,000 bank branches. Noda supports a wide range of currencies for globally-minded clients. We offer scalable plans to fuel your business growth and e-commerce plugins for easy integration.

With Noda's advanced Open Banking API, online businesses can easily integrate direct bank payments, offering their customers a seamless and secure payment experience with lower fees. Whether you're looking to enhance customer verification processes, optimise payment systems, forecast long-term value, or refine the user experience, Noda is your partner in growth.