Klarna
✓ Verified by EU AltsBuy now, pay later and flexible checkout solutions — a European alternative to Affirm and PayPal Credit.
Overview
Klarna is a Stockholm, Sweden-based European company building fintech and payments software since 2005. Despite its EU base, EU Alts has verified that Klarna independently owned, with its ultimate ownership based in Sweden, and hosts customer data with AWS (Amazon Web Services), so it may still fall under the reach of the US CLOUD Act — worth weighing against well-known US incumbents on this specific point.
Why European teams pick Klarna
Teams in Europe still consider Klarna for its fintech product and Sweden presence, operating since 2005, but unlike a fully EU-owned provider, Klarna independently owned, with its ultimate ownership based in Sweden, and hosts customer data with AWS (Amazon Web Services) — so it does not fully avoid US CLOUD Act exposure the way some other alternatives to well-known US incumbents do.
See more EU fintech tools or browse other startups from Sweden.
About
Klarna is a Swedish fintech company founded in Stockholm in 2005 and now one of Europe's largest privately held technology companies. It offers Buy Now Pay Later (BNPL), consumer financing, and checkout solutions used by over 500,000 merchants globally. For EU e-commerce businesses, Klarna is the leading BNPL provider — particularly strong in Sweden, Germany, and the Nordics — and is regulated as a bank under Swedish financial services law. Klarna's checkout reduces cart abandonment by offering consumers flexible payment options at the moment of purchase. Its merchant APIs and Shopify/WooCommerce plugins are straightforward to integrate.
Details
- Founded
- 2005
- Headquarters
- Stockholm, Sweden
- Ownership
- Independently owned (Sweden)
- Hosting
- AWS (Amazon Web Services)
- CLOUD Act
- Exposed
- Company size
- 200+ employees
Other EU startups like Klarna
- KSeF Radar Poland — Polish SaaS for monitoring KSeF invoices and keeping accounting workflows under control.
- Invoicia Norway — EU-hosted invoice management with PEPPOL e-invoicing, Norwegian VAT (MVA) support, Brønnøysund auto-lookup, and credit notes. GDPR-first.
- Sumeria France — French mobile bank with peer-to-peer payments and savings — formerly Lydia.
- Payplug France — Simple online and in-person payment solution for French businesses — a French alternative to Stripe.
- Mangopay ✓ Verified by EU AltsLuxembourg — White-label payment infrastructure for marketplaces and platforms — a Luxembourg alternative to Stripe Connect.
- Spendesk France — All-in-one spend management for finance teams — a French alternative to SAP Concur.
Frequently asked questions
What is Klarna?
Klarna is a Swedish fintech company founded in Stockholm in 2005 and now one of Europe's largest privately held technology companies. It offers Buy Now Pay Later (BNPL), consumer financing, and checkout solutions used by over 500,000 merchants globally. For EU e-commerce businesses, Klarna is the leading BNPL provider — particularly strong in Sweden, Germany, and the Nordics — and is regulated as a bank under Swedish financial services law. Klarna's checkout reduces cart abandonment by offering consumers flexible payment options at the moment of purchase. Its merchant APIs and Shopify/WooCommerce plugins are straightforward to integrate.
What does Klarna do?
Klarna is buy now, pay later and flexible checkout solutions — a european alternative to affirm and paypal credit. It is listed under fintech and payments on EU Alts because its core functionality serves teams looking for a European fintech tool with EU data residency, typically as a switch away from well-known US incumbents.
Is Klarna a good European fintech alternative?
Klarna is a fit for European businesses evaluating fintech options where data residency and GDPR alignment matter — typical buyers include EU-based SaaS teams, public-sector projects, regulated industries (healthcare, finance, legal), and any organisation that needs to demonstrate that customer data does not leave the EU. It also overlaps with payments use cases.
Is Klarna GDPR compliant?
Klarna is headquartered in Stockholm, Sweden and processes user data under the GDPR by default. Customer data processing is supervised by Sweden's data protection authority, the Integritetsskyddsmyndigheten (IMY). However, EU Alts has verified that Klarna independently owned, with its ultimate ownership based in Sweden, and hosts customer data with AWS (Amazon Web Services), which means — unlike a fully EU-owned provider — it may still be reachable under the US CLOUD Act, similar to well-known US incumbents in that respect.
How do teams switch from well-known US incumbents to Klarna?
Teams evaluating a move from well-known US incumbents to Klarna should note: Klarna independently owned, with its ultimate ownership based in Sweden, and hosts customer data with AWS (Amazon Web Services), so this switch narrows but may not fully close the US CLOUD Act gap. Weigh that against the fintech workflow fit before treating it as a complete Schrems II fix.
Where is Klarna based?
Klarna is headquartered in Stockholm, Sweden. The company was founded in 2005. Its main website is https://www.klarna.com.