Klarna Background Information

The origins of Klarna demonstrate exactly what can happen when people refuse to give up and keep trying. The three friends who founded Klarna suffered a big setback in 2005 when their simple online payment system failed to perform well in a Swedish university entrepreneurship programme.

Despite the setback, the three went on to found Karma that summer with the help of an angel investor who put the trio in touch with a group of computer programmers with the skills needed to build it. The company did reasonably well and continued to grow until 2007 when it came to the attention of a venture capital firm. The firm invested, which gave Klarna the resources needed to expand across the rest of Scandinavia.

The company continued to grow and in 2010, they began operating in Germany and the Netherlands. They also received investment from the U.S. firm Sequoia Capital, which helped them grow their revenues to over $54 million in 2011. Furthermore, in the same year the British newspaper The Telegraph included Klarna in its list of ‘Europe's 100 most promising young tech companies’.

In 2014, as part of Klarna’s plans to expand in new markets worldwide, the company merged with SOFORT, a German real time payment processor that uses online banking. SOFORT then became part of the Klarna Group and helped extend the service to more European countries, such as Switzerland and Austria.

Klarna has continued to grow and today has close to 100 million customers and it supported by hundreds of thousands of merchants. It is one of Europe’s largest financial institutions and processes more than a million transactions every day.

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Advantages of Using Klarna

There are many advantages to using Klara for banking at online casinos. To begin with, the service has excellent credentials in regards to security. There are multiple security features integrated across the service, very similar to those used for online banking. Furthermore, this makes the process very familiar, smooth and fast.

Those who are concerned about privacy will also consider Klarna a good choice. There is no need to create an account. Not only does this mean that Klarna cannot share your information with anyone, but it also means that the information simply isn’t stored anywhere to be stolen. Therefore, even if hackers did manage to overcome the encryption and other security features, they would not be able to steal your details. This also applies to your chosen online casino. The casino will also not have any of your banking information stored, so once again, there is nothing to be stolen.

Another major advantage to Klarna is how easy it is to use. The exact process is explained in the next section of this page, but it has been designed to be as user-friendly as possible. It is compatible with many banks around the world, ensuring that the service is available to as many people as possible. Furthermore, it is available in many languages and compatible with numerous currencies, making it truly accessible. The ease of use extends to those who play from a mobile device. Klarna has both a mobile app and a mobile friendly website, so players can easily make payments while on the go.

You are unlikely to find any online casinos that charge fees for using Klarana, either for deposits or withdrawals. Furthermore, Klarna itself does not charge customers any fees. This gives it a big advantage over many other payment methods, such as e-wallets, where there is normally a small fee for carrying out transactions.

While it is not applicable to online casinos, Klarna’s pay-after-delivery option is excellent. It allows you to pay for goods on credit up to 60 days after purchase. The payments are split across three instalments, the first of which is paid once the seller has posted the item, and there is no interest charged. They also offer financing plans with longer repayment periods of up to three years, but these do have a fixed interest charge.

Of course, no payment system is absolutely perfect, and there are some disadvantages to Klarna. The first is simply that it isn’t available in every country, and this is particularly true of Eastern European countries. Another issue is that some casinos do not offer Klarna for withdrawals, only deposits, so you may have to choose another payment method. However, despite these issues, for those with Klarna available to them, it is an excellent payment method.

How to Use Klarna at an Online Casino

Klarna has been designed to be very easy to use, and you should have no problems doing so. It should be pointed out though that when it comes to casino deposits you will not be able to use all of Klarnas payment features, such as fixed instalments and billing plans, but you can use it for online banking transfer. Essentially, the service acts as a bridge between your bank account and casino account, making the transfer of funds very smooth.

First you need to head to your chosen online casino’s cashier and select Karna as your deposit method (in some casinos it may still be called SOFORT). You will then need to select your country and bank from the dropdown menus. You will be prompted to login to your online banking using your regular credentials. All that is left to do is enter how much you want to deposit and confirm the transaction, and the funds will be transferred immediately.

Not every casino offers Klarna as a withdrawal option, but at many you will find it listed as Klarna via SOFORT. In the casino’s cashier simply choose this as your withdrawal method. If you have never used Klarna via SOFORT before then you will have to create an account and link it to your online banking. In the cashier, you then simply need to provide your details and enter how much you wish to withdraw. Withdrawals with Klarna usually take around two or three business days and there are no fees; however, some casinos may charge a commission.

Help with Klarna

There is plenty of support available for those who encounter problems using Klarna. The Klarna website is home to a huge help centre that is split into very easy to navigate categories such as Payments, Products & Services, and Account & Settings. The information is very well presented and easy to navigate. Those who need further help can also contact the Klarna customer support team via live chat. It may also be worth contacting your chosen online casino or bank, and both of them are sure to do all that they can to solve any problems that you may be having.


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Frequently Asked Questions
Is Klarna still only available in Sweden?

Not at all. The company has hugely expanded and it is now available in 170 countries and has a number of core markets such as Australia, US, Austria, Belgium, Denmark, Finland, Germany, Italy, The Netherlands, Norway, Spain, Switzerland, and the UK. If the casino that you are playing at is available in any of these countries then it is highly likely that you will be able to use Klarna and the local currency.

Is Klarna safe to use?

Absolutely. Klarna is well known for being extremely secure. It uses security protocols akin to those used by banks and many of the world’s major banks and its partner company SOFORT support it. As such, you can be confident that your money and privacy is kept safe at all times and you can use Klarna without a worry.

Are deposits and withdrawals instant?

Klarna deposits are normally instant. As soon as you have confirmed the transaction then you should see the funds become available in your casino account. Klarna withdrawals are not quite as fast. After the casino has processed your withdrawal request, it usually takes one or two business days for the money to arrive in your account.

Is Klarna free to use?

At an online casino, Klarna is completely free to use for both deposits and withdrawals. If there is a fee, then it is imposed by the casino and not by Klarna. However, if you use Klarna’s payment plans at different merchants, then you will be charged fees for late payments.

What payment method should I use if Klarna is not available?

There are many alternatives to Klarna that you may wish to consider. For instance, you could use a bankcard, an e-wallet such as Skrill, PayPal or Neteller, or a different payment service such as Trustly or MuchBetter. You can find information about all of these payment methods elsewhere on this site.



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