About 70% of online payments in the Netherlands go through the instant-transfer method iDEAL, but in categories with frequent returns, there is a clear preference for paying after checking the product first, i.e. deferred payment (achteraf betalen). Klarna is the method that serves this deferred-payment and installment demand, and in a Netherlands with low credit card penetration, its installment feature also doubles as a substitute for card-based installment plans.

Korean merchants in categories with high return rates, such as fashion, beauty, and home living, or those looking to raise average order value, are the primary candidates to consider. Note that Klarna acquired the bank-transfer service Sofort in 2014 and is integrating it into Pay Now, so reviewing this alongside the Sofort page makes it easier to understand the product-line structure.

When a consumer selects Klarna at checkout, a real-time credit assessment presents the available options among deferred payment (typically 14-30 days), installments, and instant transfer. Klarna manages the consumer's repayment, and the merchant's share of the funds is received by Hecto Financial in euros (EUR), converted, and settled to Korean merchants in the contracted currency among USD, KRW, and JPY. The structure typically has Klarna bear the consumer non-repayment risk for approved transactions.

Korean companies can consider adopting Klarna through Hecto Financial without a local entity in the Netherlands. Given the nature of BNPL, there are differences in terms based on industry restrictions (digital goods, high-risk industries, etc.) and average order value, so discussion before contracting is needed.

• Business registration country

  Confirm whether contracting is possible on the basis of a Korean business entity

• Sales channel

  The integration method and priority differ depending on your online sales channel mix — own storefront, online marketplace, mobile app, etc.

• Product categories handled

  Confirm in advance whether your products fall under a restricted category per the Klarna operator's merchant policy

• EU regulatory compliance

  Confirm compliance with EU payment regulations such as PSD2 and SEPA (see official sources below)

The settlement that Korean merchants receive on Klarna transactions is separate from the consumer's repayment schedule. Hecto Financial receives the amount in euros (EUR), converts it, and pays out in the contracted currency among USD, KRW, and JPY, with the cycle following the contract terms. Given the nature of deferred payment, returns and partial refunds can be frequent, and there is an invoice-adjustment process tied to the EU consumer's 14-day right of withdrawal, so it is advisable to design the refund API integration from the outset.

• De Nederlandsche Bank (Dutch central bank)Official information on the Netherlands' payment systems and supervisory regulations. If the content of this page differs from the actual regulations, the official source takes precedence.