Buyers in some countries can choose to pay in instalments from any shop that offers Etsy Payments, as long as the total of the order meets certain requirements.
At this time, Klarna instalment payments are only available to buyer in Australia, Spain, the US, Canada, and the UK. We hope to add more locations in the future.
Klarna, an online payments company, offers instalment payments to buyers on Etsy when they meet the relevant criteria.
As long as you offer Etsy Payments, you don’t need to add the option for buyers to pay in instalments with Klarna. As with all Etsy Payments payment methods, there is no way to opt out.
Am I responsible for the buyer's payments to Klarna?
When a buyer pays with Klarna, you receive the full payment immediately in your Payment account at the time of the sale, similar to any other Etsy Payments payment method. The buyer will pay the instalments directly to Klarna.
If the buyer fails to make payments to Klarna, this will not affect the payment you received for the order.
How refunds work with Klarna
You can refund a Klarna order in the same way you refund any other Etsy Payments order. Once issued, Klarna will receive the refund from Etsy and apply it to the buyer’s Klarna balance appropriately.