According to our idea, the TU Overall Score indicator should answer the biggest question of all: “Can I trust this broker with my money?”. The scores range within 0.01 – 9.99 (the higher the indicator the more trust the broker has). More details
- Many countries (with representative offices in 22 countries)
- No
Currencies:
- 9 currencies
cryptocurrencies:
- No
Our Evaluation of Klarna
According to our idea, the TU Overall Score indicator should answer the biggest question of all: “Can I trust this broker with my money?”. The scores range within 0.01 – 9.99 (the higher the indicator the more trust the broker has). More details
Brief Look at Klarna
The Klarna electronic payment system (app) is a FinTech solution, which comprises technologies that automate and improve old-school forms of financial transactions for today’s businesses. Klarna is homonymously-named after its parent company which was established in 2005. It is represented in 22 countries and supports 9 world currencies, including USD, EUR, and AUD. It is possible to link a bank card to an account in the Klarna app to make remote payments while paying for purchases in online stores around the world. The app also allows making instant transfers to other users of the service. There is no subscription fee, no transfer commissions are charged, and other fees depend on the bank where the client has an account. Many clients choose the Klarna payment system because it allows them to pay for purchases later or by splitting the amount due into several payments without a commission.
- With simple registration and verification, the Klarna app does not require the provision of identity documents.
- The app is perfectly optimized, it works quickly on most devices, and there are no bugs, lags, or bottlenecks.
- The payment system is represented in most developed countries, and the physical location of the client does not matter.
- It is possible to pay with Klarna in almost all major online stores, for example, Amazon, Nike, and H&M.
- It is possible to split any payment into 4 equal parts or start paying it within 30 days from the moment the product was purchased.
- There is no subscription fee and the app does not charge additional fees for using the deferred payment function (there are a few exceptions).
- The Klarna app can be used to pay in physical stores that accept standard Visa cards.
- The app provides detailed statistics on payments and transfers, but there are no pots, and it's not possible to set goals with alerts.
- The payment system does not offer capital multiplication options like savings accounts or rounding functions for the payment amount.
- There are no advanced internet banking features in the app, only standard transfer and budgeting functions, plus the function for deferred payments.
TU Expert Advice
Author, Financial Expert at Traders Union
Klarna offers an electronic payment system that supports transactions across various platforms, including personal and business accounts. It operates in many countries and manages nine currencies, enabling payments in major online and physical stores. Additional services include deferred payment options and transparent fee structures, beneficial for both individual and business users. The app, accessible on most devices, simplifies payments and provides a seamless user experience without subscription fees.
While Klarna is robust in processing payments, it does not offer advanced banking features or savings options like some of its competitors. The absence of investment opportunities and limitations to nine currencies may impact users seeking comprehensive financial services. Klarna can be suitable for individuals who frequently shop online and businesses seeking a straightforward payment system, but those requiring extensive financial services may need alternatives.
Klarna Summary
| 💼 Main types of accounts: | Personal and business |
|---|---|
| 💱 Multi-currency account: | Yes (9 currencies) |
| Deposit terms and conditions: | No |
| Loan terms and conditions: | No |
| ☂ Deposit insurance: | No for transfers. Commissions for other transactions depend on the country and/or bank |
| 👛️ Savings options: | Only statistics on income/expenses |
| Types of payment: | Electronic payments and transfers, NFC, Visa card |
| ➕ Additional features: | Three options for deferred payment, points system, affiliate program |
Klarna Payments accepts most online platforms providing products and services worldwide. Residents of almost any country can register in the system, and it is possible to link to bank cards. Like most payment systems, Klarna has an auto-conversion function. This means that if the currency on the account does not match the payment currency, it will be automatically converted at the current market rate without additional margins.
Klarna is rated as an intuitive service, which is primarily due to the simplified registration and well-designed interface of the mobile app. There are only two account types – personal and business. A personal account is provided to buyers, and the business account is intended for suppliers of products and services. A business account allows accepting online payments and offers automated reporting. Klarna does not provide any additional banking functions for any types of account.
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Klarna Commissions & Fees
Klarna's electronic payment service does not charge users a subscription fee. There is no need to pay extra for individual functions, there are no premium accounts, and all the features of the service are available straight after registration. The system does not provide private and corporate clients with internal accounts; however, users can link a card or their bank account to the Klarna payment account.
There are no fees for transfers within the country and abroad (except in special cases), other fees depend on the client's country/bank (they may be charged due to local legislation and Klarna’s policy). The account type also matters because buyers and sellers have different fees. As an example, here are all the commissions for a typical commercial account in the USA:
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$30 per month for connecting an electronic payment system to the online store and/or to offline points of sale.
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$0.30 per transaction (accepting payments from clients on the connected resource).
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3.29%-5.99% or 3.29%-3.79% for each transaction, depending on its type (commission will be higher for offline payments).
Klarna charges fees like any other electronic payment system. The advantage of this service is that transactions are 100% transparent and the user does not need to dive into the supporting documentation to find out how much commission he will pay for a particular transaction. The commission is displayed in the payment/transfer window.
The use of the Klarna plastic card is free of charge. There is no fee for the first 2 cash withdrawals at any ATM in the world, but two euros (or the equivalent in an applicable currency) are charged for each additional withdrawal.
Traders Union also compared Klarna’s fees with similar types of fees on other e-payment systems.
| FastSpring | 2Checkout | Klarna | |
| Payment commission | 5.9% + $0.95 | 3.5% + 0.35$, 4.5% + 0.45$ or 6% + 0.60$ per transaction | $0.30 fixed + 3.29% to 5.99% |
| Deposit commission | 2% (max $20) | Depending on the payment method | 0% |
| Withdrawal commission | $5 | Depending on the payment method | Depending on the payment method |
| Commission for international transfers | 8.9% | Depending on the payment method | Depending on the payment method |
Klarna Payments are advantageous for individuals. All standard payment transactions in online and physical stores are commission-free. There is no subscription fee either. The client may be charged a small fee in case of transfers abroad (but only in rare cases because most of such transfers are free). Commissions are always charged for transactions on commercial accounts intended for connecting the electronic payment system to online and physical stores.
Klarna is inferior to its competitors in some aspects. For example, it is not represented in all countries and supports only 9 currencies (whereas, for example, Stripe allows payments and transfers in 135 currencies). However, this service has a simple and user-friendly interface, it is well protected (never hacked), and does not charge hidden fees. Commissions attach at the average market level or lower.
Traders Union experts recommend Klarna to everyone who actively pays in online stores, as well as business owners.
Investment Options
The Klarna electronic payment system does not provide its clients with capital growth opportunities. However, the user can save funds more efficiently due to its detailed transactional reporting and grouping of expenses and income. The user does not have to pay for purchases immediately, it is enough to make only part of the payment, and transfer the balance due to the seller later, and this does not require paying additional interest, fees, or commissions (the interest exception is the installment plan for 36 months). Klarna does not offer savings accounts or features for accumulating funds.
Also, Klarna does not give users other opportunities to increase the flexibility of payment in online and physical stores. The service does not have overdrafts or flexes, and it does not provide loans. Unlike some of its competitors, the system does not aim to introduce all the functions of mobile banks in a bundle, but rather, it focuses on the speed and quality of payments, as well as the ability to delay any payment without overpayments.
If you are a large investor and plan on investments over $10,000, contact us at vip-invest@tradersunion.com or by the feedback form on our website. Our professional team will take you through all the intricacies of the deal and all the steps from signing up to withdrawal of profits.
Contacts
| Foundation date | 2005 |
|---|---|
| Regulation | SFSA |
| Official site | https://www.klarna.com/ |
Comparison of Klarna with other e-payment systems
| Klarna | Volet.com | Payeer | Skrill | TransferGo | Stripe | |
| Supported Countries | Many countries (with representative offices in 22 countries) | 150 countries | 127 countries | 200 countries | 64 countries | 48 |
| Supported Currencies | 9 currencies | 9 currencies (USD, EUR, GBP, RUB, BRL, TRY, UAH, KZT, VND) | 3 fiat currencies (USD, EUR, and RUB) and most cryptocurrencies | 40 currencies | Most currencies | 135 |
| Support for cryptocurrencies | No | Yes | Yes | Yes (deposit) | Yes | No |
| Subscription fee | No | No, only transaction fees | No, transaction fees only | No, only transaction fees | Individual | 2.9% + 30 cents per account |
| Payment acceptance equipment | No for transfers. Fees for other transactions depend on the country/bank | No, only software | No, online only | No, only online | 0-0.99 euros | No, just the software |
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