When customers reach the checkout of an online store, they expect a payment experience that is simple, secure and flexible. Offering the right payment methods can therefore play an important role in the overall e-commerce experience.
One payment method that has become particularly well known among online shoppers is Klarna. What started as a Swedish fintech idea in Stockholm has grown into an international payments and shopping platform used across multiple markets.
For e-commerce businesses, offering Klarna can give customers more flexibility in how they pay, while providing merchants with another established payment option at checkout. With Mondido, Klarna can be offered alongside other payment methods through a single payment integration.
The story behind Klarna
Klarna's story began in Stockholm in 2005, when three Swedish entrepreneurs set out to solve a simple problem: how to make online shopping easier and safer for consumers.
The company was originally founded under the name Kreditor before becoming Klarna in 2010. Its early proposition focused on allowing customers to shop online without having to make an immediate payment directly to the merchant.
The company continued to expand rapidly. In 2012, Klarna reached a valuation of more than one billion US dollars, achieving so-called unicorn status. In 2014, the company acquired SOFORT, expanding its presence within European online payments. Klarna later obtained a banking licence in 2017.
What began as a Swedish fintech company has since developed into a global brand combining payments, shopping and financial services.
This history is one reason Klarna has become a recognizable name in e-commerce. For merchants, that brand recognition can be relevant when deciding which payment methods to offer at checkout.
What is Klarna?
Klarna is a digital payment provider offering consumers different ways to pay for online purchases. Depending on the market, customer and purchase, available options can include paying immediately, paying later or splitting a purchase into multiple payments.
The exact options available are determined by factors including the customer's market and eligibility. This means that the Klarna experience can differ between countries and individual customers.
For merchants, Klarna provides an additional way to offer flexible payments without requiring customers to rely solely on traditional card payments.
Why is Klarna popular in e-commerce?
Online shopping has changed the way consumers think about payments. Customers increasingly expect to be able to choose how they pay, particularly when purchasing higher-value products.
Klarna addresses this demand by offering different payment options within the checkout experience.
Flexible payments
Depending on the market, customers may be able to pay immediately, pay later or split their purchase into multiple payments.
This flexibility can be particularly relevant for larger purchases, where customers may prefer not to pay the entire amount at once.
A recognizable payment brand
Familiarity matters in checkout. Customers are often more comfortable using payment methods they already know and recognize.
Klarna has built a strong consumer-facing brand around online shopping and payments, making it a recognizable option for many online shoppers.
International presence
Klarna is available across multiple markets, making it relevant for e-commerce businesses selling internationally.
For merchants expanding into new markets, payment preferences can vary considerably between countries. Offering internationally recognized payment methods alongside local alternatives can help businesses build a checkout experience suited to different customer groups.
Klarna and Shopify
Shopify has become one of the world's most widely used e-commerce platforms, and Klarna is supported within the Shopify ecosystem.
Klarna provides several ways for Shopify merchants to integrate its payment services. According to Klarna's documentation, merchants can add Klarna through Shopify Payments in supported regions, while other integration options are also available depending on the merchant and market.
For eligible merchants using Shopify Payments, Klarna can be activated directly through the Shopify admin. The available Klarna payment options depend on factors such as the merchant's region, the customer's location and the currency used.
Shopify merchants can therefore add Klarna to their existing checkout without building an entirely separate e-commerce platform around the payment method.
Why offer Klarna on Shopify?
Shopify provides the infrastructure for running an online store, while payment methods determine how customers complete their purchases.
Adding Klarna can give Shopify merchants another payment option to complement cards and other local payment methods.
For businesses selling higher-value products, flexible payment options may be particularly relevant. For international merchants, Klarna can also be part of a broader strategy for adapting the checkout experience to different markets.
Klarna also offers additional tools for Shopify merchants, including on-site messaging that can communicate the availability of Klarna before the customer reaches checkout. Klarna also provides a Search & Compare solution designed to make products discoverable through Klarna's shopping ecosystem.
Klarna with Mondido
While Shopify provides several ways to enable Klarna, merchants with more complex payment requirements may want to manage multiple payment methods through a dedicated payment integration.
This is where Mondido can fit into the payment setup.
With Mondido, merchants can offer Klarna alongside other payment methods through a single integration. Instead of managing each payment method as an isolated checkout solution, businesses can use Mondido to bring different payment options together within their payment infrastructure.
This can be particularly useful for e-commerce businesses operating across multiple markets or businesses that want to offer several local and international payment methods.
The goal is simple: give customers more relevant ways to pay while giving merchants a centralized payment setup.
Why choose Klarna through Mondido?
Choosing a payment method is not only about what customers see at checkout. Merchants also need to consider integration, payment management and how different payment methods fit into their existing e-commerce infrastructure.
Using Klarna through Mondido can provide several benefits.
One payment integration
Instead of building a separate payment integration for every payment method, merchants can manage Klarna as part of their broader Mondido payment setup.
Multiple payment methods
Klarna can be offered alongside other payment methods, allowing merchants to create a checkout that caters to different customer preferences.
Flexible checkout strategy
Different customers want different ways to pay. Offering a combination of cards, local payment methods and flexible payment options can give merchants more flexibility when designing their checkout.
Built for e-commerce
Mondido is designed around online payments and e-commerce, making it possible to manage payment methods within a payment infrastructure built for merchants.
Can Klarna improve conversion rates?
Payment methods are one part of the checkout experience and can influence whether customers complete their purchase.
Offering a payment method that matches customer expectations may reduce friction for some shoppers. Klarna can be particularly relevant for customers who prefer to pay later or split their payments.
However, no payment method guarantees higher conversion for every business.
Checkout performance depends on many factors, including product price, shipping costs, customer trust, mobile experience, page speed, payment options and the overall purchasing journey.
For this reason, merchants should evaluate payment performance using their own checkout data rather than assuming that one payment method will have the same impact across every business.
Klarna for high-value orders
Klarna can be particularly relevant for businesses with higher average order values.
When an online purchase represents a significant expense, customers may place greater importance on payment flexibility. Options such as paying later or splitting a purchase can give eligible customers another way to manage the transaction.
This can make Klarna relevant across categories such as fashion, electronics, home and furniture, sports equipment, travel and other higher-value purchases.
The suitability of Klarna ultimately depends on the merchant's products, customers and target markets.
Is Klarna right for your e-commerce business?
Klarna can be a valuable payment option for businesses that want to offer customers more flexibility at checkout.
It is particularly relevant for merchants targeting customers who are familiar with Klarna, businesses selling higher-value products and e-commerce brands operating across markets where Klarna is available.
For Shopify merchants, Klarna can be integrated through Shopify's payment ecosystem. For businesses looking for a broader payment setup, Klarna can also be offered through payment partners such as Mondido.
The most effective payment strategy will depend on your customers and markets. Rather than relying on a single payment method, merchants can analyze checkout data, customer preferences, conversion rates and average order values to determine which combination of payment methods best fits their business.
Frequently asked questions about Klarna
What is Klarna?
Klarna is a Swedish-founded digital payment and shopping company offering consumers different ways to pay for online purchases, including options to pay immediately, pay later or split payments depending on market and eligibility.
Who founded Klarna?
Klarna was founded in Stockholm in 2005 by three Swedish entrepreneurs: Sebastian Siemiatkowski, Niklas Adalberth and Victor Jacobsson. The company was originally called Kreditor and changed its name to Klarna in 2010.
Why is Klarna popular with online shoppers?
Klarna offers flexible payment options and has built a recognizable consumer-facing brand around online shopping and payments. Available payment options vary by market and customer.
Can I use Klarna with Shopify?
Yes. Klarna can be offered through Shopify's payment ecosystem in supported markets. Shopify and Klarna provide several integration options depending on the merchant, region and payment setup.
Can I use Klarna with Mondido?
Yes. Mondido enables merchants to offer Klarna alongside other payment methods through a single payment integration.
Is Klarna available internationally?
Klarna operates across multiple international markets, although the specific payment options available depend on the customer's location, the merchant's market and other eligibility factors.
Is Klarna suitable for high-value purchases?
Klarna can be particularly relevant for businesses selling higher-value products because flexible payment options can give eligible customers additional ways to manage larger purchases.
Offer Klarna with Mondido
Klarna has grown from a Swedish fintech startup into an internationally recognized payment and shopping brand. For e-commerce businesses, its combination of brand recognition and flexible payment options makes it a relevant addition to the checkout experience.
If you want to offer Klarna alongside other payment methods, Mondido provides a way to manage Klarna as part of a broader payment integration.
Create your Mondido account, complete the onboarding process and start building a checkout that gives your customers more ways to pay.