Klarna’s Impact Is Strongest in Sweden and Norway

Christmas time is shopping time. Especially when buying gifts is close to inescapable, consumers gladly take the chance to pay in installments or by invoice. The term “buy now, pay later” (BNPL) has become a buzzword to describe the trend toward easy payment processing in eCommerce.

One of the most notable providers of BNPL is Klarna, a Swedish fintech company that offers consumers the convenience of not having to pay immediately, while merchants receive a guaranteed refund. Klarna currently operates in 18 markets, in some of which it ranks among the top 5 payment providers in eCommerce.

Sweden and Norway Are Klarna’s Primary Markets

Klarna stands out as a top payment provider in Sweden and Norway. Klarna Invoice ranks third in Sweden and Norway across eCommerce categories, while Klarna Installment ranks fourth in Norway and fifth in Sweden. Nearly half (47.2%) of Swedish online stores offer Klarna Invoice, compared to 39.2% in Norway. Installments are less common in these two countries, but remain popular.

The percentages above are the highest adoption shares for Klarna across all its operating markets. Just take Germany, where Klarna Invoice is offered by 19% of online stores and Klarna Installment by 12%. In France, Klarna Invoice doesn’t even reach 1% online store adoption, while Installments are a little more common, at 3%.

Klarna’s prominence in Sweden and Norway has two clear reasons. The first is its proximity to these markets, given Klarna’s origin as a Swedish company. The second reason ties into cultural preferences: High living standards meet a wide adoption of online payments across the board. Consumers here are more likely to make use of a novel payment provider like Klarna. Compare Poland, where cash on delivery is still commonly used for payments and Klarna doesn’t even reach 1%.

Klarna Among the Top 5 in Certain Product Categories in the UK and Finland

But there are other markets where Klarna is among the top 5 payment providers, only in particular categories and not the entire online market. The first is another Nordic country, Finland. Klarna ranks third in Electronics, where 50% of online stores offer Klarna Invoice. The other two categories are Hobby & Leisure (ranked fourth) and Furniture & Homeware (ranked fifth).

In the UK, Klarna ranks fifth in Fashion (27.0%) and Furniture & Homeware (24.8%). Unlike Finland, UK consumers favor Klarna Installments. This preference is tied to both cultural factors and the nature of these categories: Fashion dominates UK eCommerce with a 28.4% revenue share in 2024, while Furniture & Homeware typically involves higher average order values. Klarna's popularity reflects consumers’ tendency to split payments for larger purchases in these categories.

BNPL’s Benefits Can Also Become Perilous

An upside of BNPL is the convenience of payment processing, but that very convenience can easily turn sour for careless spenders. Social media posts detail the experiences of young consumers who have racked up debt by using Klarna without much thought. While there are safeguards against this kind of behavior, the potential for reckless spending with the help of these new tools remains.