Klarna
Buy 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. As an EU-headquartered provider, Klarna operates under GDPR and is outside the reach of the US CLOUD Act, making it a privacy-friendly alternative to well-known US incumbents for European teams.
Why European teams pick Klarna
Teams in Europe pick Klarna when they want a fintech provider that bills in EUR, supports their local data-protection officer requirements, and keeps customer data under Sweden law, operating since 2005. Compared with well-known US incumbents, Klarna avoids cross-border data transfers under Schrems II and the US CLOUD Act, which is often the deciding factor for European procurement and legal teams.
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
Other EU startups like Klarna
- InvoiciaNorway — EU-hosted invoice management with PEPPOL e-invoicing, Norwegian VAT (MVA) support, Brønnøysund auto-lookup, and credit notes. GDPR-first.
- SumeriaFrance — French mobile bank with peer-to-peer payments and savings — formerly Lydia.
- PayplugFrance — Simple online and in-person payment solution for French businesses — a French alternative to Stripe.
- MangopayLuxembourg — White-label payment infrastructure for marketplaces and platforms — a Luxembourg alternative to Stripe Connect.
- SpendeskFrance — All-in-one spend management for finance teams — a French alternative to SAP Concur.
- PleoDenmark — Smart company spending with virtual cards and receipt capture — a Danish alternative to Expensify.
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 falls under EU jurisdiction, so it processes user data under the GDPR by default. Customer data processing is supervised by Sweden's data protection authority, the Integritetsskyddsmyndigheten (IMY). Because the company is not US-incorporated, it is not subject to the US CLOUD Act — meaning US authorities cannot compel Klarna to disclose customer data the way they can with well-known US incumbents. For European buyers, that often simplifies DPIA paperwork and standard contractual clauses.
How do teams switch from well-known US incumbents to Klarna?
Most teams move to Klarna from well-known US incumbents because they want EU data residency without giving up the core fintech workflow. Klarna's Sweden base means a single jurisdiction for both the company and (typically) its hosting infrastructure, so you can drop Schrems II transfer impact assessments for this part of your stack. Plan the migration in stages: export your data from the US incumbent, pilot Klarna with a small team, then move the rest once the integration coverage you need is confirmed.
Where is Klarna based?
Klarna is headquartered in Stockholm, Sweden. The company was founded in 2005. Its main website is https://www.klarna.com.