Klarna (previously Sofort) is currently available only to punters in certain countries but that list is growing. It’s also a payment method offered by just a few betting sites. You can see those which do accept Klarna as banking option below.
The company is expanding quickly and spreading across Europe. As such, the breadth of betting sites catering for Klarna deposits is sure to widen. That makes it worthwhile learning about the payment method and how it works, now. You’ll find everything you need to know, by reading on.
Best Klarna Betting Sites: Top 6
The following is a list of the best sites for betting with Klarna:
*Info accurate as of 24-11-2020 for the European market.
Deposits & Withdrawals: Limits & Times
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What is Klarna?
Klarna is a Swedish bank that offers online payment services. Those online services have become popular with shoppers, gamers, and punters alike. There are three main types of online transactions that Klarna users can make; Pay Later, Split It and Instant Banking.
Klarna Pay Later
Klarna Pay Later is the core service provided by the company. It’s designed to help users make online transactions, even when their bank account is short of the required funds. Klarna users can make an online purchase with a merchant that accepts the payment method. They can then pay the balance back to Klarna later.
Once a user has completed a transaction through Klarna, they usually have 30 days to pay for it. On occasion, the payment timeframe can be as short as 14 days. The user will have linked a bank account to their Klarna account. They’re obliged to ensure that the account has the funds to pay for the transaction before the end of the payment timeframe.
Klarna Split It
The Klarna Split It option is similar to Pay Later. Where it differs is in how users pay back what they’ve spent on an online transaction. Rather than having to pay back the funds in one go, they can ‘Split It’ over a longer repayment plan.
Klarna Instant Banking
This is the newest of Klarna’s payment services. The company started offering instant banking in 2014. That was after the original Swedish firm took over German company SOFORT. There’ll be more on that a little later.
Klarna Instant Banking lets users make instant bank transfers, via their Klarna account. They can, as a result, pay for online transactions immediately from their bank. All without providing any account details to the site they’re paying. Whatever that site is, too, will not appear on their bank account.
It’s this instant banking service that betting sites have started to accept for deposits. Understandably, Klarna’s deferred payment services have not reached the gambling industry.
How to Use Klarna for Online Gambling
To use Klarna for gambling you must have a Klarna account and use a sportsbook that accepts the method. The following is a simple, step-by-step guide to making a deposit:
- Head to the Klarna website. Set up your Klarna account.
- Link whichever bank account you wish to use for gambling deposits to your Klarna account. You can now use the Klarna Instant Banking option at any online merchant that caters for it.
- Visit the betting site of your choice which accepts Klarna. Head to the ‘Cashier’, ‘Deposit’ menu, or wherever you usually go to make deposits.
- Choose the Klarna option from the available payment methods. This will generally be listed as either ‘Pay Now by Klarna’ or ‘SOFORT by Klarna’.
- Enter the specific information required for the deposit. This will include the deposit amount, your bank or card issuer, and the PIN and TAN numbers associated with your Klarna account.
- Confirm the deposit and your funds will appear instantly in your betting account. On your bank statement, all that will appear is a payment to Klarna.
Withdrawing: withdrawing via Klarna is just as simple as depositing. Once again, the process is basically identical to making a withdrawal by any other method. What you should keep in mind, though, is that not all bookies who accept Klarna for deposits, allow you to withdraw the same way. Where Klarna isn’t accepted as a withdrawal method, you’ll need to set up a different payment channel to withdraw your winnings (usually bank transfer which takes 1-5 business days).
Fees Associated with Klarna
Klarna make a big deal of the fact that their name means ‘clear’ in Swedish. They claim that reflects the fact that their services are transparent and easy to understand. Unfortunately, that’s not always the case with their fees.
What fees get charged to consumers differ according to the service they’re using. As well as differing according to country of residence. It’s best to check with Klarna themselves to see what charges you may be subject to.
In the main, though, Klarna make their money via fees charged to merchants, not users. Bookmakers won’t impose a charge, Klarna may.
Advantages & Disadvantages of Klarna
The best way to decide if a new payment method might be right for you, is by weighing up its main pros and cons. For Klarna, those are as follows:
- Where available, deposits via Klarna are instant.
- Klarna Instant Banking lets you fund a betting account from your bank, without disclosing bank details to the betting site.
- The betting site’s name won’t appear on your bank statement.
- Klarna is currently only supported in a handful of countries, and by a small number of bookies.
- Many of the bookies who do accept Klarna for deposits don’t allow you to withdraw funds to the service.
- It’s tricky to get to grips with exactly what fees you may have to pay to use Klarna.
History of Klarna
Klarna was founded in 2005 in Stockholm. The three founders were Sebastian Siemiatkowski, Niklas Adalberth, and Victor Jacobsson. Their overarching aim was to provide a way of making online purchases quicker and easier.
The company quickly grew and spread beyond Sweden. By expanding into the likes of Norway, Finland, Denmark, and Germany, Klarna swiftly became one of Europe’s largest banks. In 2014, the company became even larger, by acquiring German firm SOFORT.
SOFORT offered German users the instant banking service now available to all Klarna subscribers. Once Klarna had acquired the German company, the parent firm became known as the Klarna Group. That group now accounts for 60 million consumers across 170,000 merchants in 17 countries.