Klarna

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Who should use this guide
This guide is intended for merchants who:

Use Payrails as a payment orchestrator

Use Klarna for payments

Are approved to process raw card data

We use a server-to-server integration with Klarna, so your account must be enabled to process raw card data. If this isn’t enabled, payments won’t work in production. Please contact your Klarna account manager or support team to activate it.

Create and configure a Klarna integration in Payrails

Log in to the Payrails portal.
Go to Settings → Integrations.
Select Add instance to create a new integration configuration.
Select the Workspaces where this integration should be available.

About Workspaces
Workspaces determine where this integration can be used. They allow you to isolate provider setups by region or business line, or share a single configuration across multiple environments.

Step 1: Choose the integration type

Select Payment and continue to the next step.

Step 2: Choose the provider

Select Klarna and continue to the next step.

Step 3: Configure your Klarna integration

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What you’ll need from Klarna
Before you begin, make sure you have access to:

Klarna API username

Klarna API password

Log in to your Klarna Merchant Portal to complete this step..

Integration instance name

An integration instance is a specific payment provider setup in Payrails. You can create multiple instances for each provider based on region, currency, or business needs. Choose a clear, consistent name, as it is used in routing.

In Payrails

Enter a clear and descriptive Instance name.

Payment methods

In Payrails

Select the Klarna payment method to enable it.

Account details (region-specific processors)

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Klarna payment offerings vary by region due to consumer preferences and regulatory requirements:

Europe: Pay in 30 days, Slice it (installments), Pay Now (Sofort / bank transfer), and Direct Debit
Common markets include Germany, Sweden, and Austria.

North America (US / Canada): Pay in 4 (interest-free installments) and Financing

Oceania (Australia / New Zealand): Primarily Pay in 4, with limited Pay in 30 days support

In Payrails

Select the Klarna payment processors you want to use:
- Europe
- North America
- Oceania

Only select regions where your Klarna merchant account is approved.

Credentials

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Klarna API credentials are sensitive. Store them securely and use separate credentials for test and live environments.

In Klarna

Log in to the Klarna merchant portal.
Navigate to Settings → Klarna API keys.
Select Generate new Klarna API key.
Save the generated API username and API password securely.

In Payrails

Enter the Klarna API username and API password into the corresponding Username and Password fields.

Enable the integration

In Payrails

Select Save account to enable the integration.

The Enabled status confirms that the Klarna integration is active and available for routing.

Your Klarna integration is now ready to process payments in the selected environment.

Next steps

Run a test payment using a Klarna test card.
Verify that:
- The payment appears in Klarna.
- The payment status updates correctly in Payrails.
Once verified in test mode, repeat the setup in live mode.

→ Continue to: Test a payment