Klarna The European alternative to PayPal Pay Later / Affirm (US)
Regulated EU payment service provider with installment payments
About Klarna
Swedish payment service provider with EU banking license for installment payments and payment processing. The company is subject to European financial market regulation and data protection legislation.
Highlights
- ✓ Buy now, pay later, flexible within 30 days
- ✓ Installment payments up to 36 months
- ✓ Buyer protection for non-delivery or defects
- ✓ Clear app for all payments and returns
- ✓ Klarna Card: Visa card with installment payments worldwide
Why European?
- → Swedish bank (Klarna Bank AB), European banking license
- → Regulated by Swedish Financial Supervisory Authority (Finansinspektionen)
- → GDPR-compliant; Klarna is subject to Swedish and EU law (core banking built on AWS)
- → European alternative to US BNPL providers such as Affirm
Pricing
Free for buyers · Installment payments from 0% (depending on merchant) · Klarna Card on request
Frequently asked questions about Klarna
What is Klarna and what is it used for? +
Klarna is a Swedish buy-now-pay-later payment service from Klarna Bank AB (publ) in Stockholm, founded in 2005. The app enables immediate payment, payment in 30 days, installments in 3 rates (interest-free), or financing over up to 36 months. Klarna is integrated as a payment method at over 500,000 merchants worldwide, including Amazon, Zalando, and MediaMarkt.
Does Klarna run on European infrastructure? +
Klarna is a Swedish bank licensed by the Swedish Financial Supervisory Authority (Finansinspektionen) and subject to GDPR. The core banking platform was built entirely on AWS (Amazon Web Services), with microservices on Amazon EKS. AWS, as a US service, is subject to the CLOUD Act. Klarna extensively collects purchase data for credit checks, which is critically discussed in data protection contexts.
What distinguishes Klarna from PayPal? +
Klarna primarily specializes in buy-now-pay-later (installment payment, Pay in 30 Days), while PayPal is a classic online payment service. Klarna is European (Sweden), PayPal is US-American and CLOUD Act-bound. Klarna also offers its own shopping app with price comparison, cashback, and curated products. PayPal has the larger merchant network for pure online payment.
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Entry verified on 08.05.2026