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How to Set Up WooCommerce Klarna Payments and Offer Buy Now Pay Later Option in Your Store

Editorial Team
April 18, 2024
How to Set Up WooCommerce Klarna Payments and Offer Buy Now Pay Later Option in Your Store

Providing a WooCommerce Klarna payment method is great for offering a Buy Now, Pay Later option in your online store. 

According to a survey, almost 70% of consumers tend to splurge a bit more when using a BNPL (Buy Now, Pay Later) service than traditional payment methods.

In fact, according to Klarna's data, offering Klarna can boost conversion rates by up to 68%.

This is because it enables customers to purchase desired products immediately, even if they don’t have the funds upfront. The flexibility of not having to pay upfront makes it convenient for users to make purchases. 

Offering Klarna helps increase sales and enhances customer loyalty, encouraging repeat purchases.

In this post, we’ll demonstrate the step-by-step process of how to integrate Klarna with WooCommerce.

Watch this video tutorial to set up Buy Now Pay Later payments like Klarna in your WooCommerce store:

How to Set Up WooCommerce Klarna Payments and Offer Buy Now Pay Later Option in Your Store

What is Klarna?

Klarna is a Swedish fintech company that provides a "Buy Now, Pay Later" (BNPL) payment service. 

This global payment and shopping service offers smarter and more flexible shopping experiences to 150 million consumers across 45 countries, with over 500,000 merchants.

klarna order today and pay later

Their tagline is 'Order today and pay later'.

Klarna gives customers the flexibility to pay later. This process gives users enough time to pay for the product they want to buy but can’t pay for right now. 

🔔Note:  Klarna is available in limited countries and supports limited currencies

In total, Klarna offers four ways customers can buy now and pay later for a product:

  • Pay in 3 or 4 parts (Installments): Shoppers pay for the purchase in three or four interest-free payments.
  • Monthly installments (Financing): Customers pay for the purchase over a longer term of up to 36 months, which will include an interest fee.
  • Pay later: Shoppers pay for the purchase in a single payment within 30 days of placing an order.
  • Pay now: Customers pay for the purchase immediately using a linked card, bank debit, or bank transfer.

The availability of these payment options depends on the user’s location. Here is an overview of which payment is available in which locations: 

country with Klarna payment installaments

Source: Stripe

You must be intrigued by how this company manages its Buy Now Pay Later process, right? Let’s find out. 

How does Klarna Payment Work?

Well, paying with Klarna is super easy for shoppers. Let’s take a look at how the Klarna payment works: 

Step 1: Select the Klarna payment option at checkout

When placing an order, users can select Klarna like any other payment option and place an order. 

choose klarna pay over time and place order now

Step 2: Get instant approval from Klarna

Upon selecting Klarna, the user undergoes a quick application process to determine their eligibility. 

In the backend, Klarna verifies the user’s details and checks which payment options the customer is eligible for. Once approved, Klarna will provide the user with available payment options.

Step 3: Choose the payment plan and confirm payment 

After that, the customer can choose the payment option from the available ones. 

choose pay in 4 with klarna

Afterward, users need to make the first payment and confirm to complete the order placement. 

choose visa credit card to pay using Klarna WooCommerce

Store owners need not stress if customers choose to pay later, as Klarna pays the full amount to the merchants. Following that, Klarna manages customer transactions over time. 

Why Should You Accept WooCommerce Klarna Payments in Your Store?

Incorporating the WooCommerce Klarna payment gateway into your WooCommerce store opens up a myriad of opportunities for you and your customers. 

Let’s explore the pros of offering Klarna payments in your WooCommerce store. 

  • Enhanced shopping experience

Klarna provides a "Buy Now, Pay Later" (BNPL) option, allowing customers to make purchases and pay for them over time. This flexibility can enhance the overall shopping experience and attract customers who prefer installment plans.

  • Increased sales and conversions

Offering Klarna can potentially lead to higher conversion rates and increased sales. As mentioned earlier, you can achieve up to a 68% boost in sales by utilizing Klarna payment options. 

  • Reduced abandoned carts

About 9% of online shoppers abandon their carts because they can’t find their preferred payment method. Offering the option to pay later can help reduce this abandoned cart rate. 

  • Competitive advantage

Analysts estimate that BNPL services will account for 12% of total global ecommerce spend on physical goods by 2025.

So, if you want to position your business for future success and stay ahead of your competitors, embracing payment flexibility could be a strategic move.

Essentials to Set Up WooCommerce Klarna Payment Method in Your Store

Before setting up Klarna in your WooCommerce store, ensure you have the following: 

As you are looking for a solution to the question of how to integrate Klarna with WooCommerce, you must have WooCommerce installed and configured properly to integrate Klarna payments in your store. 

🔔 You can get help from this Woo document guide to set up your WooCommerce store.

1. A Stripe account

Stripe is a popular payment processing platform that allows businesses to accept and manage payments online. 

We will use Stripe to integrate Klarna with WooCommerce because Stripe is super secure. It's certified with PCI DSS Level 1, and it uses real-time machine learning to guard businesses against fraudsters. It's like having a top-notch security system in place.

You need to set up your Stripe account to start collecting payments in your store.

You can set up Stripe is free. They charge you a small amount for each transaction. Their pricing structure varies based on different countries.

2. Activate Klarna in your Stripe account 

Please note that you should activate Klarna on your Stripe account. To do this, navigate to Settings ⇒ Payment Methods from the Stripe dashboard and edit the associated account. 

3. Stripe Gateway for WooCommerce plugin

FunnelKit’s Stripe Gateway for WooCommerce offers you a powerful integration solution that lets you accept online payments in your store.

It’s one of the best WooCommerce Stripe gateway plugins that offers a simple, secure, and quick way to collect payments on the web and mobile.

Stripe Gateway for WooCommerce is compatible with credit and debit card payments through Stripe such as Visa, Mastercard, American Express, JCB, Diners Club, and more.

Plus, it further integrates with express payment options such as Google Pay and Apple Pay and BNPL gateways such as Klarna, Affirm, and Afterpay.

Furthermore, it also supports local payments like SEPA, P24, iDEAL, Bancontact, and more.

This Stripe Gateway plugin is compatible with WooCommerce checkout pages and one-click upsells for seamless order placement and processing.

4. A valid SSL certificate

An SSL certificate helps authenticate your website and encrypts the data transmitted between a user’s web browser and your website’s server.

Make sure the WooCommerce store has a valid and active SSL certificate. Because it plays a crucial role in verifying your website's identity and encrypting the data exchanged between a user's web browser and your website's server.

5. Ensure your store currency is compatible with Klarna's supported currencies

Klarna supports several currencies, including EUR, DKK, GBP, NOK, SEK, USD, CZK, AUD, NZD, CAD, PLN, and CHF. Make sure your WooCommerce Store currency is set to one of these. 

6. Sign up for countries where you want to offer Klarna

Klarna will only be available to customers in countries in which you have signed up for Klarna. If you would like to sell using Klarna to customers in multiple countries, you will need to sign up for Klarna in each of those countries. 

Note: Make sure you check if Klarna is available in the country where you want to sell using Klarna. 

Now that you know about all the essentials, move to the next section to find out how to add Klarna to woocommerce.

How to Set Up and Configure WooCommerce Klarna Payments in Your Store?

The first step of integrating Klarna with WooCommerce is to connect the WooCommerce store with Stripe using the Stripe Payment Gateway plugin.

Step 1: Install the Stripe Gateway for WooCommerce plugin

From the WordPress dashboard, navigate to Plugins ⇒ Add New Plugin and search for “FunnelKit Stripe Gateway”.

Once you’ve located the plugin, install and activate the plugin on your website.

install and active stripe payment for WooCommerce

Now, connect your Stripe account to the WooCommerce store.

Step 2: Configure your Stripe account

Once you’ve activated the plugin, you’ll see a notification to configure your Stripe account.

Click on the ‘Start Onboarding Wizard’ button to start the setup and configuration process.

start onboarding wizard funnelkit stripe

It’ll take you to a new window. Click the “Connect with Stripe’ button.

connect with stripe to inteegrate klarna with WooCommerce

You’ll now see the Stripe account authorization page. 

Log in to your Stripe account by entering your login credentials (your registered email address and password).

login to stripe funnelkit account

You’ll need to verify your Stripe account with a 6-digit verification code sent to your registered email or phone number.

Select the Stripe account you want to use for your WooCommerce Klarna integration.

Once done, click Connect.

choose funnelkit dev account and connect to stripe
  • Enable the payment gateways

On the next screen, you will see all the available payment gateways. Make sure to hit the toggle to Klarna payment button.

Here, we’ll enable both the Credit Card (Stripe) and Klarna payment gateway. After that, click on Save and Continue.

enable klarna and credit card payment
  • Set up webhooks

This Stripe payment gateway will automatically set up webhooks.

Click the ‘Setup Webhook Now’ button and move to the next screen.

setup webhook now of funnelkit cart
  • Enable Express Checkouts

The plugin will prompt you to enable express checkout buttons such as Apple Pay and Google Pay.

This way, you can incorporate one-click checkouts in your WooCommerce store.

enable google and apple page along with klarna

You’re all set! Make sure to activate the test mode and first configure the WooCommerce Stripe Klarna payment mode.

save and review settings of FunnelKit stripe plugin

Clicking on ‘Save and Review Settings’ will automatically fetch all your Stripe account details into your WooCommerce store:

  • Stripe connection ID and status
  • Webhook ID and URL
  • Live and test webhook secret key
  • Debug log URL

That’s it! Your Stripe account is now successfully connected and configured in your WooCommerce store.

Step 3: Enable the Klarna payment gateway in your WooCommerce store

Navigate to WooCommerce ⇒ Settings ⇒ Payments. Under the Payments tab, scroll down and click on ‘Manage’ next to Klarna – Klarna - Pay Over Time.

manage klarna settings

Now, check the option next to ‘Enable Klarna Payments’.

enable klarna woocommerce

This will enable Klarna in your WooCommerce store.

Step 4: Configure the WooCommerce Klarna payment option in your store

Now configure the rest of the settings of Klarna payment, such as 

  • Title:  Provide a title.
  • Description: The description text appears below the title of the Klarna payment method on the checkout page.
enable klarna to connect to woocommerce
  • Klarna Message Location:  Klarna payment shows a default message. You can choose to display this message on the Product page, Cart page, and Shop/Categories page. 
klarna message location

Note: In case of installments, Klarna calculates this amount dynamically and displays it on the product page, cart page, and category page.

Here is how it will show up on the product page: 

klarna message on product page

Have a look at how it will look on the shop/category page:

klarna message on shop page

Here is what it will look like on the cart page: 

🔔 Note: Skipping the cart page can make the shopping process faster and smoother. Learn how to offer direct checkout that skips the cart page. 

karna message on the cart page

And finally, how will look on the checkout page with the custom description: 

klarna WooCommerce payment preview
  • Selling location and selling to specific countries: Klarna by default can be used to sell to a few specified countries, among the countries you can choose the country where you want to sell. 
Klarna selling locations and message placement

After that click on “Save changes” to update. 

It’s always a good practice to test whether the WooCommerce Klarna payment option is working properly before making it available to customers. Read on to learn how to test WooCommerce Klarna payments. 

Testing the WooCommerce Klarna Payments in Your Store

To test the WooCommerce Klarna payment method, put your website in the ‘Test’ mode by going to WooCommerce payment settings.

For that, navigate to WooCommerce ⇒ Settings ⇒ Payment and click on “Manage” next to Klarna – Klarna - Pay Over Time. 

On the “Stripe General Settings” tab set the Mode to test. 

enable test mode to test klarna

After that, add any product to your cart, and on the checkout page choose the option “Klarna - Pay Over Time Klarna” to checkout. 

select klarna and place order

It’ll take you to a Klarna popup window. 

klarna WooCommerce

Then ask you to provide a number for verification for the first time. 

🔔 Note: You can use Stripe's test data for testing Klarna payment. Stripe provides data for all the countries where Klarna is available. You can use the data for your preferred country.

klarna verification

Now provide a 6-digit code(any six-digit).

enter 6 digit code klarna

After the verification, choose a payment plan from the available options. These payment plans are approved based on your eligibility or purchasing power.

Here, you can choose any of the options. We are choosing the pay in four-part option.  After choosing an option click on Continue. 

You will now see a breakdown of how the payments need to be made. Click on Continue. 

pay in 4 interest free Woo klarna

Now choose the payment option and click on Pay with Klarna. 

choose visa credit card to pay using Klarna WooCommerce

It will take some time for the process and after the completion, you will be redirected to the thank you page. 

thank you page klarna checkout

Bonus Tip: Offer Multiple Payment Gateways to Increase Conversion Opportunities

Offering multiple payment options can significantly enhance the likelihood of conversions by providing customers with the flexibility and convenience to pay for their favorite products.

Considering factors such as location, financial conditions, and personal preferences, different customers may feel more comfortable with different payment gateways. 

You can offer:

If you use Stripe Payment Gateway for WooCommerce to offer Klarna payments, then you don’t need an additional plugin to offer other payment gateways. You can offer all the mentioned types of payment gateways with the same plugin. 

Furthermore, you can enable other payment options such as:

  • PayPal Standard and PayPal Express
  • Cash on delivery or Check Payments or BACS (Bank Transfer)

Our experts recommend you look for popular payment methods in the country you serve and gather feedback from your customers.

Understanding user’s preferred payment options will help you tailor your payment gateways to their needs, ultimately boosting conversions in your WooCommerce store.

Enhance the Klarna WooCommerce Payment Experience with Conversion-Optimized Checkouts!

While Klarna for WooCommerce undoubtedly helps attract more customers with the Buy Now, Pay Later option, it's insufficient to ensure users complete their purchase if you can't provide a smooth, conversion-optimized checkout process.

According to the Baymard Institute, 28% of people abandon carts due to long and complicated checkout processes. 

reasons for cart abandonment

You can reduce this rate by using FunnelKit Funnel Builder and offering your customers an easy, simple mult-step checkout processes.

Currently aiding over 20,000 WooCommerce users, FunnelKit Funnel Builder helps upgrade checkout pages and boost sales by providing a frictionless shopping experience.  

FunnelKit Funnel Builder offers various prebuilt checkout page templates that you can import and use with just a few clicks. 

checkout page templates

You can also choose the number of steps you want on your checkout page. 

choose steps of WooCommerce checkout page Utopia template

Note: Plus, you can style your pages like shopify checkout or order forms. 

Not just a multi-step checkout, FunnelKit Funnel builder comes with multiple features to ensure a frictionless, conversion-friendly checkout: 

  • Google address autocomplete - This feature automatically fills in users’ complete addresses as they begin entering their information, including street address, city, zip code, state, and country fields.
google auto complete utopia
  • Express checkout option: With express checkout, offer a click checkout option for users which makes it convenient for many users and encourages them to complete the purchase.
google and paypal on the checkout page
  • Advanced checkout form field editor: Add, edit, and rearrange the form fields on the WooCommerce checkout page based on your requirements, allowing for seamless customization with a simple drag-and-drop feature.
add new field to checkout using FUnnelKit funnel builder
collapsible field multi page checkout page in WooCommerce using Utopia template by FunnelKit

Template: Classic

  • Product recommendations to boost AOV: FunnelKit Funnel Builder offers seamless pre-purchase product recommendations, like order bumps, enhancing the shopping experience and boosting sales with a single click.
add order bump along with klarna to boost aov

Note: Along with an order bump on the checkout page, you can also offer post-purchase one-click upsell to boost order value using FunnelKit. 

FunnelKit Funnel Builder seamlessly integrates with the FunnelKit Stripe plugin, allowing you to easily pair beautiful checkout pages with Klarna WooCommerce payments. This provides users with the best shopping experience and boosts sales simultaneously. 

Frequently Asked Questions About Klarna WooCommerce Payments? 

Have a look at some of the popular questions regarding WooCommerce Klarna payments along with answers: 

  • Is Klarna compatible with WooCommerce?

Yes, Klarna payment method is compatible with WooCommerce. You can easily integrate Klarna with WooCommerce with a plugin named Stripe Gateway for WooCommerce by FunnelKit, provided you have a Stripe account. 

  • Where can Klarna be activated in the Stripe account?

To activate Klarna in the Stripe account, from the Stripe dashboard, navigate to Settings ⇒ Payment Methods. After that edit, the associated account and under the Buy Now Pay Later payment options, activate the Klarna payment method. 

  • How do I add Klarna to my WooCommerce website?

With the help of Stripe Gateway for WooCommerce by FunnelKit, you can add Klarna to your WooCommerce website for free of cost. 

  • Does Klarna work with WordPress?

Yes, Klarna works with WordPress. But you need to install an eCommerce platform like WooCommerce to make Klarna work with WordPress. 

  • How do I add Klarna to my product page?

Once you integrate Klarna with WooCommerce using a plugin, such as the 'Stripe Gateway for WooCommerce' by FunnelKit, you can easily add Klarna to the product page through simple settings (mentioned in this post).

  • What payment options does Klarna offer?

Klarna offers various payment options, including Pay Later, Pay Now, and Financing. It's important to note that the availability of these payment options may vary depending on location and the specific online store or merchant you are using.

  • In which countries can I use Klarna?

You can use Klarna in several countries including Sweden, Norway, Finland, Denmark, Germany, Austria, the Netherlands, Belgium, Switzerland, France, Italy, Poland, Spain, Portugal, Great Britain, Hungary, Czech Republic, Slovakia, the USA, and Australia.

  • What payment types does Klarna accept?

Klarna accepts major debit and credit cards such as Visa, Discover, Maestro, and Mastercard. Prepaid cards are not accepted. 

  • Which currencies did Klarna support? 

Klarna supports many currencies, including EUR, DKK, GBP, NOK, SEK, USD, CZK, AUD, NZD, CAD, PLN, and CHF.

  •  Are there any transaction fees associated with using Stripe and Klarna?

Store owners using Stripe to process Klarna transactions may encounter an additional transaction fee of 5.99% + 30¢ for each successful transaction, on top of Klarna’s own fees.

  • Does Klarna charge any joining/monthly/annual fees?

Klarna does not charge any joining, monthly, or annual fee for using its services. However, late payments and unpaid debts for Klarna's "Pay Later" products and services may incur fees.

Are You Ready to Accept WooCommerce Klarna Payments in Your Store?

The global Buy Now Pay Later (BNPL) market is projected to reach USD 115,413.91 million by 2028, indicating significant demand for this payment option.

Klarna enables you to effortlessly incorporate the buy now pay later feature into your WooCommerce store with just a few simple steps. 

By following the process shared in this blog on how to add Klarna to WooCommerce, you can seamlessly integrate Klarna without any hassle.

We highly recommend pairing advanced payment options, such as Buy Now Pay Later, with a frictionless checkout experience provided by FunnelKit Funnel Builder. This combination ensures an optimal shopping experience.

Start accepting WooCommerce Klarna payments to offer users greater flexibility in purchasing your products and maximizing your sales.

Get FunnelKit Funnel Builder today!

Author: Editorial Team
The Editorial Team at FunnelKit (formerly WooFunnels) is a passionate group of writers and copy editors. We create well-researched posts on topics such as WordPress automation, sales funnels, online course creation, and more. We aim to deliver content that is interesting and actionable.