Set up Klarna Payment Method for a WooCommerce Store

Klarna is a ‘Buy now pay later’ method where the customers pay in installments over time. In this payment method, the store owner accepts full payment immediately, but the customers pay nothing or a portion of the total at the purchase time. 

Choosing Klarna at the checkout, redirects customers to the Klarna hosted payment page. Klarna offers various payment options including Pay now, Pay later, Financing, and Installments.

Below shown are payment options available to customers by country.

• As a first step, install and activate the Stripe payment gateway for the WooCommerce plugin.
• Go to plugin settings or from the WordPress dashboard, go to WebToffee Stripe > General Settings > Local Gateways.
• Head on to Klarna.

• Klarna: Enable to accept Klarna payments.
• Title: Enter a custom title for Klarna payment. This title will be visible on the checkout page.
• Description: Enter a custom description for Klarna payment. This description will be visible on the checkout page.
• Order Button Text: Enter a custom text for the Klarna payment button.

A sample preview of Klarna at the checkout:

To sum up, the Klarna payment workflow will be as shown below:

• At the checkout, redirects customer to the Klarna Hosted Payment Page. 
• The customer can choose any among the payment options: Pay now, Pay later, Financing, and Installments. 
• The payment options will differ based on the customer’s country/location. Refer to test Klarna pay.
• Klarna authenticates the payment either via Date of birth or One-time password.
• Customer returns to the business site by successfully placing an order.

To receive the order status updates in a timely manner, it is recommended to add your site’s webhook to the stripe dashboard. Follows the steps in – Setting up Webhooks and Supported events article to add a webhook endpoint.