Klarna via Stripe

Introduction

Klarna is a popular Buy Now, Pay Later (BNPL) payment method that customers use to make purchases and pay over time. It offers flexible payment options — pay now, pay later, pay in four installments, and other financing options — depending on customer eligibility and region.

With Chargebee, you can configure and process Klarna payments through Stripe for both one-time payments and recurring subscriptions.

Integration options

You can integrate Klarna via Stripe using the following methods.

Key behaviors

• New subscriptions — each new subscription needs customer authorization and creates its own subscription-scoped recurring reference.
• Existing subscriptions — recurring charges use the stored mandate reference without requiring the customer to be present.
• Reused payment methods — a customer can reuse the same Klarna payment method across multiple subscriptions, but each subscription keeps its own recurring reference.
• Subscription edits — when a customer edits a subscription that uses Klarna, Chargebee might prompt them to reauthorize using the same subscription reference.

Where you can use Klarna

Klarna behaves differently across Chargebee surfaces because each flow supports a different part of the subscription lifecycle. The following table summarizes where customers can use Klarna and how it's saved.

Prerequisites

To accept Klarna payments, meet the following conditions:

• You have a Stripe account configured to accept Klarna payments.
• Klarna is enabled in your Stripe account. Learn more about enabling Klarna.
• For recurring subscriptions, you understand Klarna's subscription-scoped mandate model.

Configure Klarna via Stripe in Chargebee

Follow these steps to configure Klarna via Stripe in your Chargebee Billing site:

1. Log in to your Chargebee Billing site.
2. Go to Settings > Configure Chargebee > Payment Gateway > Stripe.
3. Enable Klarna.
   
4. Click Apply to save your changes.

Configure Smart Routing

After you enable the payment method, follow these steps to configure Smart Routing for it:

1. Go to Settings > Configure Chargebee > Payment Gateways.
2. Click Manage Rules under Smart Routing.
   
3. Under the For Klarna section, select your Stripe account from the Choose a payment gateway dropdown, and then click Save.
   

Checkout flow

When a customer selects Klarna in Chargebee's checkout, the payment flow is as follows:

1. Click Proceed to Checkout to start a purchase.
2. Select Klarna as the payment method on the payment details page.
   
3. Review the order details, and then click Pay & Subscribe.
   
4. Select a Klarna payment option:
   • Pay in full — pay the full amount now
   • Pay in 4 — split the amount into four interest-free payments
   • Pay later — pay on a flexible weekly schedule
   
5. Confirm the payment details, and then authorize the payment with Klarna.
   
6. After authorization, Klarna processes the payment and returns the customer to Chargebee.

Recurring payments

Klarna via Stripe supports recurring payments through subscription-scoped mandate references. When a customer authorizes a Klarna payment for a subscription, Chargebee stores the recurring reference for that specific subscription. Each subscription keeps its own mandate, even when a customer reuses the same saved payment method.

After Klarna is set up during checkout, renewals are processed automatically:

• Renewals are charged on the subscription's due date without any customer action.
• No redirect or reauthorization is required for automatic renewals.
• If a customer has multiple subscriptions paid with Klarna, each renews on its own schedule using its own subscription reference.

Choosing a Klarna payment option

When a customer is redirected to Klarna, Klarna decides which payment options to present (such as pay now, pay later, or pay in installments) based on the customer's eligibility, region, and transaction details. Chargebee and Stripe don't control these options, and they can't be previewed before the customer completes payment.

After the customer completes the payment, the selected option appears on the Stripe Charge object at charges.data.payment_method_details.klarna.payment_method_category. Possible values are pay_now, pay_later, pay_with_financing, and pay_in_installments.

Review subscription details

To review a subscription or confirm a payment status:

1. In your Chargebee Billing site, select Subscriptions from the left navigation pane.
2. Select the relevant Subscription ID to open its details.
3. In Payment Method Details, confirm the Klarna logo, which indicates the payment method used.
4. Select the Transactions tab to view the processed payment.
   

Limitations and important points

Keep the following limitations in mind when offering Klarna via Stripe:

• Klarna via Stripe currently supports USD only. Support for other currencies depends on your Stripe account configuration.
• Customers can't add a new Klarna payment method from the customer portal. They can only reuse or switch to a Klarna payment method that's already saved.
• In Pay Now or Collect Now, Klarna is available as a one-time payment method only and isn't saved for future use. A saved Klarna appears only when paying a single subscription invoice; it's hidden for multiple or mixed invoices.
• Each subscription has its own Klarna mandate, so a single subscription is tied to one Klarna payment method.
• Klarna might process payments asynchronously and send payment status updates through webhooks.
• This integration doesn't work in in-app browsers.