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 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.
Prerequisites
To offer Klarna Financing through the Mastercard Gateway,
- you must be registered with your browser payments service provider
- your merchant profile on the Mastercard 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 |
Klarna Financing Integration
Hosted Checkout integration allows you to collect payment details from your payers through an interaction that the Mastercard 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.
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).
{
"apiOperation":"INITIATE_BROWSER_PAYMENT",
"browserPayment":{
"operation":"PAY",
"returnUrl":"<your_merchant_URL>"
},
"customer":{
"email":"john.smith@example.com",
"firstName":"John",
"lastName":"Smith",
"mobilePhone":"01234567890"
},
"billing":{
"address":{
"street":"10 Upper Bank Street",
"postcodeZip":"E14 5NP",
"city":"London",
"country":"GBR"
}
},
"order":{
"amount":99.2,
"currency":"GBP",
"item":[
{
"name":"Blue Jeans",
"quantity":"1",
"unitPrice":70.83,
"unitDiscountAmount":48.16,
"unitTaxAmount":4.53,
"detail":{
"unitTaxRate":0.2
}
},
{
"name":"Red Shirt",
"quantity":"1",
"unitPrice":20.83,
"unitTaxAmount":4.17,
"detail":{
"unitTaxRate":0.2
}
},
{
"name":"Leather Belt",
"quantity":"1",
"unitPrice":25,
"unitTaxAmount":5,
"detail":{
"unitTaxRate":0.2
}
},
{
"name":"Baseball Cap",
"quantity":"1",
"unitPrice":10,
"unitTaxAmount":2,
"detail":{
"unitTaxRate":0.2
}
},
{
"name":"Shipping and Handling",
"quantity":"1",
"unitPrice":4.17,
"unitTaxAmount":0.83,
"detail":{
"unitTaxRate":0.2
}
}
]
},
"sourceOfFunds":{
"type":"KLARNA_FINANCING"
}
}
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.citybilling.address.countrybilling.address.postcodeZipbilling.address.streetcustomer.emailcustomer.firstNamecustomer.lastNamecustomer.mobilePhone: This field is required whencustomer.phoneis not provided.customer.phone: This field is required whencustomer.mobilePhoneis 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.cityshipping.address.countryshipping.address.postcodeZipshipping.address.streetshipping.contact.emailshipping.contact.firstNameshipping.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].nameorder.item[n].quantity: The value of this field must be an integer.order.item[n].unitPriceorder.item[n].unitDiscountAmount: This field is required when the item has been discounted and must be provided if a value is provided in theorder.discount.amountfield.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.
Chargebacks
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.
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... |
|---|---|
response.gatewayCode=SUBMITTEDresult=SUCCESS |
Redirect the payer using the URL provided in the response. |
Retrieve Transaction/Retrieve Order Response |
What This Means... |
response.gatewayCode=APPROVEDresult=SUCCESS |
The payment is successful. |
response.gatewayCode=PENDINGresult=PENDING |
The Mastercard 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 Gateway. |
response.gatewayCode=CANCELLEDresult=FAILURE |
The payer has cancelled the interaction for this payment. Offer the payer the option to try another payment method. |
response.gatewayCode=DECLINED or ACQUIRER_SYSTEM_ERRORresult=FAILURE |
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. |
response.gatewayCode=TIMED_OUTresult=FAILURE |
Treat this as a declined payment. The Mastercard 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 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 Gateway web hook notifications, you may receive additional notifications for funding status updates and chargebacks.
Testing Your Integration
The Mastercard Gateway provides a browser payments emulator that allows you to test your Klarna Financing integration.