Klarna Financing

Klarna Financing is a payment method provided by Klarna AB, a popular Swedish bank, to payers in Europe. Klarna Financing provides a flexible financing option to the payers when they purchase goods online.

Payers enter a long-term financing agreement when they purchase an item and pay in installments. Payers can choose to repay in six to thirty-six equal monthly installments including interest (if any), pay a minimum amount each month, or pay off the entire amount within a month.

Klarna Financing is supported in the Mastercard Payment Gateway. This page describes integration details specific to Klarna Financing. It is recommended that you read the integration guidelines for browser payments, before building the Klarna Financing integration.


To offer Klarna Financing through the Mastercard Payment Gateway,

  • you must be registered with your browser payments service provider
  • your merchant profile on the Mastercard Payment Gateway must be configured using the details of your account with the browser payments service provider, and
  • you must have a bank account in one of the supported currencies registered against your merchant account at your browser payments service provider.

Klarna Financing Transactions

Klarna Financing supports transactions originating from multiple countries with their corresponding currencies.

Country Currency
Austria (AUT) EUR
Germany (DEU) EUR
Netherlands (NLD) EUR
Finland (FIN) EUR
Sweden (SWE) SEK
Norway (NOR) NOK
Great Britain (GBR) GBP
Denmark (DNK) DKK

Klarna Financing Integration

Klarna Financing through Hosted Checkout

Hosted Checkout integration allows you to collect payment details from your payers through an interaction that the Mastercard Payment Gateway hosts and displays.

From the API version 62 onward, Klarna Financing is automatically available as a payment method once your payment service provider enables and configures you for this payment method.

For details, see Browser Payments via Hosted Checkout Integration.

Klarna Financing through Direct Payment

Direct Payment integration allows you to offer the Klarna Financing on your own checkout page.

Klarna Financing is supported from the API version 61 onward.

Make an Initiate Browser Payment request where sourceOfFunds.type = KLARNA_FINANCING and browserPayment.operation = PAY (Klarna Financing does not support the Authorize operation).

Sample Code to Initiate Klarna Financing Payment
         "street":"10 Upper Bank Street",
         "postcodeZip":"E14 5NP",
           "name":"Blue Jeans",
            "name":"Red Shirt",
            "name":"Leather Belt",
            "name":"Baseball Cap",
            "name":"Shipping and Handling",

Klarna Financing Processing Details

In addition to the standard fields required in a browser payment request, provide the following required information for the processing of Klarna Financing.

Billing Address and Contact Details

These fields are mandatory unless otherwise stated and are required to support the Klarna Financing risk assessment and credit checking processes. The payer's contact information is used to communicate with the payer and to provide electronic invoices and payment notifications.

  • billing.address.city
  • billing.address.country
  • billing.address.postcodeZip
  • billing.address.street
  • customer.email
  • customer.firstName
  • customer.lastName
  • customer.mobilePhone: This field is required when customer.phone is not provided.
  • customer.phone: This field is required when customer.mobilePhone is not provided.

Shipping Address and Contact Details

These fields are mandatory when a value for any shipping.address.* or shipping.contact.* field is provided.

  • shipping.address.city
  • shipping.address.country
  • shipping.address.postcodeZip
  • shipping.address.street
  • shipping.contact.email
  • shipping.contact.firstName
  • shipping.contact.lastName

Order Item Details

Provide complete details about each order item that is purchased so that Klarna Financing can correctly validate and display this information to payers and support risk and credit checking processes of Klarna Financing.

  • order.item[n].name
  • order.item[n].quantity: The value of this field must be an integer.
  • order.item[n].unitPrice
  • order.item[n].unitDiscountAmount: This field is required when the item has been discounted and must be provided if a value is provided in the order.discount.amount field.
  • order.item[n].unitTaxAmount: This field is required when a payer has to pay tax on the item.
  • order.item[n].detail.unitTaxRate: This field is required when a value for unit tax amount has been provided.

Shipping and Handling

The total tax amount payable for the order is displayed to payers during the payment flow. If the amount payable for shipping and handling includes tax, then you must create an order line to represent shipping and handling so that the discrete tax amount can be provided. If tax does not apply then the shipping and handling amount can be provided in the order.shippingAndHandlingAmount field.

Preferred Language

You can set the language that you prefer Klarna Financing to use for pages displayed to payers by providing the browserPayment.preferredLanguage field in the Initiate Browser Payment request. However, for Klarna Financing only the primary national language of the billing.address.country or English will be supported.


Klarna Financing payments are at risk of chargebacks. If payers successfully dispute a payment with Klarna Financing, then a chargeback transaction will be created on the order. For more information, see chargeback transaction.

If the Klarna Financing chargeback is reversed, it does not reflect in the Mastercard Payment Gateway .

How to Interpret the Transaction Result

The table below shows the transaction response codes for the possible scenarios you may encounter after initiating Klarna Financing.

Initiate Browser Payment Response
What This Means...
Redirect the payer using the URL provided in the response.
Retrieve Transaction/Retrieve Order Response
What This Means...
The payment is successful.
The Mastercard Payment Gateway is waiting for a notification from the acquirer about the payment result. Try RETRIEVE_TRANSACTION again later or listen to notifications from the Mastercard Payment Gateway.
The payer has cancelled the interaction for this payment. Offer the payer the option to try another payment method.
The payment was declined. Offer the payer the option to try another payment method.
In the case of an ACQUIRER_SYSTEM_ERROR, you may want to inquire with the acquirer about the reason for payment failure, or you can try RETRIEVE_TRANSACTION again.
Treat this as a declined payment. The Mastercard Payment Gateway will make an attempt to ensure the transaction is not successful or will revert the transaction.

Klarna Financing Order ID

For the approved payments, the Mastercard Payment Gateway will provide you the ID that Klarna Financing has assigned to this order in the field transaction.acquirer.additionalResponseData. This may be useful information for communications you may have directly with Klarna Financing.

Web Hook Notifications

If you have subscribed to Mastercard Payment Gateway web hook notifications, you may receive additional notifications for funding status updates and chargebacks.

Testing Your Integration

The Mastercard Payment Gateway provides a browser payments emulator that allows you to test your Klarna Financing integration.

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