​
In which geographies can Klarna be used?

Currently, Klarna on xPay is supported only for U.S.-based customers using USD. Non-U.S. cards or billing addresses are not supported.

​
What payment options does Klarna offer?

Klarna provides multiple financing plans based on the consumer’s credit profile:
Plan TypeTypical Interest APR*Amount Eligibility
Pay in 4 (bi-weekly)0%35 to 2,500 USD
Pay in 3 (monthly)0% to 13.99%149 to 10,000 USD
6-Month Plan (monthly)7.99% to 19.99%149 to 10,000 USD
12-Month Plan (monthly)8.99% to 23.99%149 to 10,000 USD
Ranges are indicative, based on observed data. While Klarna’s official APR range goes up to 35.99%, the highest rates we’ve seen across customers with lowest credit quality would be 25-28%.

​
How is Klarna’s credit decisioning handled?

Klarna underwrites each transaction individually using a soft credit pull. The following factors are considered:
  • Customer’s credit score
  • Existing Klarna balances
  • Billing/shipping address match
  • Transaction amount
  • General risk signals based on account activity
Important: Merchants are not involved in approval decisions – Klarna independently assesses each transaction.

​
What are the consumer requirements to use Klarna?

To be eligible, a user must have:
  • A valid U.S.-issued debit card (credit cards are not accepted for repayments)
  • A U.S. billing address
  • Be 18+ years old
  • A valid Social Security Number (SSN)
  • A credit profile that meets Klarna’s internal approval thresholds

​
Why might a Klarna transaction be declined?

Common reasons include:
  • Low or insufficient credit score
  • Existing unpaid Klarna balances
  • Mismatch in billing and shipping addresses
  • High-risk transaction patterns
  • Incorrect billing information
  • Attempt to pay in a non-supported currency or from a non-U.S. card

​
Can users see their exact APR and plan before confirming?

Yes. Klarna presents the exact APR, tenure, and payment schedule before the user confirms the transaction, ensuring full transparency.

​
How are late or missed payments handled?

Klarna charges a late fee equal to 25% of the missed installment amount, capped at a maximum of $7.

​
Can consumers repay using a credit card?

No. Klarna only accepts debit cards or linked bank accounts for repayments. This is to prevent users from paying off credit with more credit and to promote responsible borrowing.