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.

Important notes

• One-time payments — customers can use Klarna for one-time invoice payments without saving the payment method for future use.
• Customer portal — customers can reuse saved Klarna payment methods for subscription edits in the customer portal. Adding new Klarna payment methods isn't supported in the portal.
• Asynchronous processing — Klarna might process payments asynchronously and send payment status updates through webhooks.
• Payment options — Klarna dynamically determines which payment options (pay now, pay later, pay in 4) it shows each customer, based on eligibility, region, and transaction details.

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. Login 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

Once you have enabled the payment method, follow these steps to configure Smart Routing for the same.

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 drop-down, and then select Save.

Checkout flow

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

1. Select 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 select Pay & Subscribe.
   
4. Choose 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.

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 it's 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.