External Payment Methods & External Checkouts

Klarna Checkout offers a wide variety of payment methods to cover the main needs of consumers in all markets, which all are included with a simple, single integration. On this page you will find out how you could customize the integration of Klarna Checkout, if you want to add additional payment methods on top of the ones offered already by Klarna.

The upside of using external payment methods in Klarna checkout is that you will be able to offer a smoother user experience regardless of payment alternative.

You can add additional payment methods either as External Payment Methods or as External Checkouts in Klarna Checkout. Depending on what experience you want to offer your customers.

You can find the implementation guides and requirements for these two types of integrations below.


External Payment Methods in Klarna Checkout

This feature enables you to leverage Klarna Checkout for payment methods that are currently not offered by Klarna. This means that you will be able to offer one great checkout experience for all of your customers, regardless of how they want to pay. When the payment selector is visible to the user, they will see the External Payment Methods you’ve added within the list of available Payment Methods.

The External Payment Method solution could also be used in case when a payment method you offer does not handle customer address data and thus is handled by Klarna Checkout.

Please note that when a consumer is using a payment method not offered by Klarna, no purchase order is created by Klarna. Klarna doesn’t know whether the consumer eventually finishes the purchase after leaving the checkout. Klarna doesn’t send any kind of confirmation emails or handle any money. All processing of the order is the merchant’s responsibility.

How does it work?

When the Checkout is loaded, you have the option to load additional payment methods into Klarna Checkout. The customer will still fill out address information in Klarna Checkout, but when choosing an external payment method they will be redirected to the URL you have provided. The user will finalize the purchase at this page.

Note: You are responsible for the completion of the purchase flow when a user has chosen an External Payment Method including e.g. an order summary page, a order confirmation page and reconciliation of orders.

How to Implement

You need to utilize external_payment_method to make sure that they appear in all payment flows. You must add all necessary information, including information to be displayed in relation to the payment method and redirect URIs, in this object when loading Klarna Checkout.

Klarna Checkout will redirect the user to the added URI when they have selected the payment method and clicks “Continue”. You will have to integrate the purchase flow following this step to enable completion of an order.

Note: Integrating external payment methods requires additional integration work, since this payment method will be processed and finalized outside Klarna checkout. You will thus need to cater for some of the payment flows, both frontend and backend. As well as ensure that your checkout is compliant. See examples of additional integration steps below:

  1. Since external payments take place outside Klarna checkout, user data will be shared for this purchase to you, the merchant. Klarna has no involvement in the integration towards any third party provider.
  2. You/the external payment method will need to cater for that so all relevant user data to finalize the purchase (e.g. address, name, etc.) is stored securely.
  3. Please note that in the case of external payment methods, you or the third party provider will need to host your own pages to make the purchase flow compliant. Including e.g. order confirmation page, order summary page and buy button.
  4. New backend integration towards the external payment method will be required.
  5. Given that this is an external payment, Klarna’s buyer protection will not apply for your consumers. We advise that you mention that this is an external payment method in the payment method description.

Code example

The payment methods are defined when calling the Klarna Checkout. The payment methods will be presented in the checkout in the order they are set in the API call, after the default options provided by Klarna.

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"external_payment_methods": [
    {
        "name": "Cash on delivery",  // Mandatory
        "redirect_url": "https://…", // Mandatory. HTTPS. Page for completing the purchase.
        "image_url": "https://…",    // Optional. HTTPS. Exact size: 69x24px
        "fee": 1450                  // Optional fee added to the order.
        "description": "Lorem.."     // Optional. 500 character limit. Links can be set with the Markdown syntax [Text](URL)
    }
]

[example:_code/kco_v3_additional_payment_methods]

Supported External Payment Methods in KCO

KCO supports a wide range of external payment methods in Klarna Checkout. The following list displays all of the external payment methods we currently support:

Note: The name is case sensitive and must be used in exactly the way it’s mentioned in this list. (e.g. “Paypal” won’t work but “PayPal” does).

NamePrimarily used in
Name
Achteraf betalen
Primarily used in
NL
Name
Alipay
Primarily used in
Global
Name
Amazon
Primarily used in
Global
Name
Amazon Pay
Primarily used in
Global
Name
Amex
Primarily used in
Global
Name
Apple Pay
Primarily used in
Global
Name
Bancontact
Primarily used in
BE, NL
Name
Bank Transfer
Primarily used in
Global
Name
Bankoverførsel
Primarily used in
DK
Name
Banköverföring
Primarily used in
 
Name
Barzahlen
Primarily used in
DE, AT
Name
Betal i butikk
Primarily used in
 
Name
Betal på verkstedet
Primarily used in
 
Name
Betala i butik
Primarily used in
SE
Name
Betala på plats
Primarily used in
 
Name
Betala på station
Primarily used in
 
Name
Betalning på betjäningsstället
Primarily used in
 
Name
bitcoin
Primarily used in
Global
Name
Bonifico Bancario
Primarily used in
IT
Name
Bussiennakko
Primarily used in
FI
Name
Card via PayPal
Primarily used in
US
Name
Carte Bancaires
Primarily used in
FR
Name
Carte Bleue
Primarily used in
FR
Name
Cash on Delivery
Primarily used in
Global
Name
Cash on Hand
Primarily used in
Global
Name
ClickandBuy
Primarily used in
DE, AT
Name
CoinPayments
Primarily used in
Global
Name
Delbetal i ditt eget tempo
Primarily used in
NO
Name
Delbetalning
Primarily used in
SE
Name
Divide.Connect
Primarily used in
 
Name
EAN Fakturering
Primarily used in
DK
Name
EU- standaard bankoverschrijving
Primarily used in
NL
Name
EU-Standard Bank Transfer
Primarily used in
 
Name
Ennakkomaksu
Primarily used in
FI
Name
Faktura
Primarily used in
SE
Name
Faktura 14 dagar
Primarily used in
SE
Name
Faktura 14 dage
Primarily used in
DK
Name
Fast delbetaling
Primarily used in
SE
Name
Forskudd
Primarily used in
NO
Name
Förskottsbetalning
Primarily used in
SE
Name
Gavekort
Primarily used in
NO
Name
Giropay
Primarily used in
DE, AT
Name
Google Wallet
Primarily used in
Global
Name
iDeal
Primarily used in
NL
Name
Konto
Primarily used in
 
Name
Kort
Primarily used in
 
Name
Kortti
Primarily used in
FI
Name
Kreditkarte
Primarily used in
DE, AT
Name
Lasku 14 päivää
Primarily used in
FI
Name
Lastschrift
Primarily used in
DE, AT
Name
M-Cash
Primarily used in
 
Name
Maksu noudon yhteydessä
Primarily used in
FI
Name
Maksu liikkeessä
Primarily used in
FI
Name
Maksu palvelupisteellä
Primarily used in
FI
Name
MobilePay
Primarily used in
 
Name
Multibanco
Primarily used in
 
Name
Nachnahme
Primarily used in
DE, AT
Name
Pagamento Alla Consegna
Primarily used in
IT
Name
Partner
Primarily used in
 
Name
Pay at office
Primarily used in
FI
Name
Pay at station
Primarily used in
 
Name
Pay by Card or PayPal
Primarily used in
US
Name
Pay in-store
Primarily used in
 
Name
Paydirekt
Primarily used in
DE, AT
Name
PayPal
Primarily used in
Global
Name
PayPalExpress
Primarily used in
US
Name
Postförskott
Primarily used in
SE
Name
Postiennakko
Primarily used in
FI
Name
Postoppkrav
Primarily used in
NO
Name
SOFORT Überweisung
Primarily used in
 
Name
Strix
Primarily used in
 
Name
Swish
Primarily used in
SE
Name
Transferencia Bancaria
Primarily used in
Global
Name
Verkkomaksu
Primarily used in
FI
Name
Vipps
Primarily used in
NO
Name
Virement bancaire
Primarily used in
FR
Name
Vorkasse
Primarily used in
DE, AT
Name
Vorkasse Banküberweisung
Primarily used in
DE, CH
Name
Wire Transfer
Primarily used in
Global
Name
Zahlung bei Abholung
Primarily used in
DE, AT
Name
銀行振込
Primarily used in
JP

To be compliant, you need to have an agreement between you and the external payment method providers (e.g. Swish and Paypal). This does not apply if you are providing the method yourself (e.g. Vorkasse).


External Checkouts in Klarna Checkout

How does it work?

When the Checkout is loaded, you have the option to load additional payment methods as external checkouts, such as “Wallets". Payment Methods integrated as External Checkouts in KCO are shown as buttons in the bottom of KCO and available from the moment KCO loads. When a user clicks on one of these Express Checkout buttons, they will be redirected to the URI you have added to the button, where they will complete the purchase, e.g. to Swish.

Please note that when a consumer is using a payment method not offered by Klarna, no purchase order is created by Klarna. Klarna doesn’t know whether the consumer eventually finishes the purchase after leaving the checkout. Klarna doesn’t send any kind of confirmation emails or handle any money. All processing of the order is the merchant’s responsibility.

How to Implement:

For External Checkouts, you don’t need Klarna Checkout to collect data about the consumer (e.g. Swish or Paypal).

Note: For Swish and PayPal you have to configure external_checkout to make sure that they appear in all payment flows. You are responsible for the completion of the purchase flow including the e.g. address collection and confirmation page.

  1. Since External Checkouts take place outside Klarna checkout, no user data will be shared for this purchase to you, the merchant. Klarna has no involvement in the integration towards any third party provider.
  2. You/the external payment method will need to cater for that so all relevant user data to finalize the purchase (e.g. address, name, etc.) is stored securely.
  3. Please note that in the case of external payment methods, you or the third party provider will need to host your own pages to make the purchase flow compliant. Including e.g. order confirmation page, order summary page and buy button.
  4. New backend integration towards the third party payment provider will be required.
  5. Given that this is an external payment, Klarna’s buyer protection will not apply for your consumers.
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"external_checkouts": [
    {
        "name": "Non Klarna eWallet", // Mandatory
        "redirect_uri": "https://…",  // Mandatory. HTTPS. Page for completing the purchase.
        "image_uri": "https://…",     // Mandatory. HTTPS. Exact size: 276x48px
        "fee": 1450                   // Optional fee added to the order.
    }
]

[example:_code/kco_v3_additional_payment_methods]

Supported External Checkouts in KCO

KCO supports a wide range of external checkouts in Klarna Checkout. The following list displays some of the external payment methods we support:

Note: The name is case sensitive and must be used in exactly the way it’s mentioned in this list. (e.g. “Paypal” won’t work but “PayPal” does).

NamePrimarily used in
Name
Amazon Pay
Primarily used in
Global
Name
Amex
Primarily used in
 
Name
Bank Transfer
Primarily used in
 
Name
Barzahlen
Primarily used in
DE, AT
Name
bitcoin
Primarily used in
Global
Name
Cash on Hand
Primarily used in
 
Name
ClickandBuy
Primarily used in
 
Name
CoinPayments
Primarily used in
 
Name
Giropay
Primarily used in
DE, AT
Name
Google Wallet
Primarily used in
 
Name
Kreditkarte
Primarily used in
DE, AT
Name
Lastschrift
Primarily used in
DE, AT
Name
M-Cash
Primarily used in
 
Name
MobilePay
Primarily used in
 
Name
Nachnahme
Primarily used in
DE, AT
Name
Partner1
Primarily used in
 
Name
PayPal
Primarily used in
Global
Name
Postförskott
Primarily used in
SE
Name
Postiennakko
Primarily used in
FI
Name
Postoppkrav
Primarily used in
NO
Name
Strix
Primarily used in
 
Name
Swish
Primarily used in
 
Name
Vipps
Primarily used in
 
Name
Vorkasse
Primarily used in
DE, AT
Name
Wire Transfer
Primarily used in
 
Name
Zahlung bei Abholung
Primarily used in
DE, AT

To be compliant, you need to have an agreement between you and the external payment method providers (e.g. Swish and Paypal). This does not apply if you are providing the method yourself (e.g. Vorkasse).

This section only applies to the regions:
Norway

Vipps

To be compliant, you have a contractual obligation to have an agreement between you and the external payment method providers (e.g. Vipps and Paypal).

Reconciliation of Vipps transactions

To simplify your bookkeeping, Klarna wants to provide a complete reporting offering.

However, as Vipps has a slightly different setup compared to our other available payment methods you will need to do some changes in your reconciliation process.

What separates Swish from our other payment method is that the money from a Vipps transaction will be paid out immediately and separately compared to Klarna’s aggregated payout.

New variables

Reconciliation of Vipps transactions will require new variables to be included in your settlement reports.

Settled by:

Klarna - Paid out by Klarna

Vipps as an External Payment Method - Paid out by Vipps

External reference

The reference that will appear on your bank account, set and controlled by Vipps.

Klarna reference

A reference number that Klarna sets and controls. This may may or may not appear on your bank account depending on which bank you are using.

New transaction types

Reconciliation of Vipps transactions will require new transaction types to be included in your settlement reports.

External payout capture

Represents the transfer of money from consumer to merchant through Vipps scheme upon purchase completion in the checkout

External payout refund

Represents the transfer of money from merchant to consumer through Vipps scheme upon return/chargeback/refund

External payout retransfer

In the case where a consumer switches payment method after the order has been activated, External payout retransfer represents the shift of responsibility for the payout from Klarna to Vipps. This transaction type will deduct money from the payout from Klarna, as money has already been transferred through the Vipps schemes.

External payout reactivation

Since capture is only concerning money transfer, and External payout retransfer fully undoes the previous activation; External payout reactivation represents the activation (shipment) of the good whereas External payout capture only represents the transfer of funds.

Important - invoice number info

Please be advised that for transactions where Vipps was selected as a payment method, Klarna can not guarantee that this transaction has an invoice number. As invoice numbers are created upon activation, some transactions that haven’t been activated yet will be included in the settlement report.

Best practice

We recommend matching the non-Vipps transactions in the same way as you currently do it.

For Vipps transactions, you can link the external reference to the order ID set by you in your ERP. You can use the invoice number in the cases you have that in the settlement report, but to keep things consistent Klarna recommends you to reconcile based on your order ID. When reconciling your bank statement, simply identify the paid orders using the external reference and reconcile these in your system.