What is Klarna?

If you are signed up for Studio Pro Merchant Services, and you're in the US, you now have the option to turn on Klarna.

Klarna allows your customers to make a purchase using a payment plan, you get all the funds upfront, and then Klarna works with the customer to collect the money. If the customer falls behind on their payment plan, that’s for Klarna to worry about – not you!

Why would your families want to use Klarna?  

When you offer customers the option to pay in a series of smaller payments instead of a full payment upfront, you make it possible for them to buy more, buy bigger, and buy now—all of which can help boost sales.

What can families use Klarna towards? 

They can use it for any online, one-time payments they make through Studio Pro, including tuition, costumes, tickets, and anything else you sell through the portal! The first payment will be due on the day they set up the plan, and then the next three are scheduled every two weeks after.

What does Klarna mean for me as a business owner? 

Although Klarna allows your customers to pay over time, you receive the total transaction amount in full and upfront from Klarna. Klarna handles underwriting the customer, collecting payments over time, and taking on the risk of any associated repayment issues or fraud claims that may arise.  

How much does it cost to use Klarna? 

Because of the extra work associated with these payments, Klarna does come at a higher cost. The Klarna fee is 5.99% + $0.30 per transaction. This solution isn’t for everyone – but if you have customers who are chronically behind on payment plans or customers who want more flexibility, this solution is right for you! Klarna does not allow you to pass these transaction fees on to the customer the way other payment methods do.

Do I have to offer Klarna to my customers? 

No, this is completely optional. You can enable and disable Klarna anytime by going to More > Merchant Services > Settings > Payments tab. 

How do I enable Klarna for my customers? 

Getting started is simple. Just go to More > Merchant Services > Settings > Payments tab, and check the box next to “Allow Klarna Payments.” Once enabled, it will look like this inside your Parent Portal: