Australia is the birthplace of Afterpay and Zip, making it BNPL home turf, so even though Sweden-based Klarna entered the market through partnerships with local banks, its footing has been more limited than the homegrown providers. Notably, in 2025 there were reports of Klarna scaling back or exiting the Australian market, so it is currently uncertain whether new payment acceptance for Australian consumers is even possible. If you are considering adopting it, you must confirm before contracting whether Klarna's Australian service is still operating.

For merchants that need a BNPL option for Australian customers, it is currently safer to first consider the market standards Afterpay (four interest-free installments) or Zip (account-based credit limit). Klarna should only be considered if you are trying to unify your payment method mix with other selling markets such as Europe or North America — and even then, confirm actual availability in Australia through consultation with Hecto Financial before deciding.

Assuming Klarna is operating normally in Australia, the consumer selects Klarna at checkout and, after a credit check, pays via a pay-later or installment method, with Hecto Financial receiving the merchant's proceeds in AUD, converting the currency, and settling in the contracted currency of USD, KRW, or JPY. However, since reports of Klarna scaling back or exiting Australia in 2025, the actual scope of available payment acceptance remains fluid, so confirming the service status must come before starting integration.

Because of the 2025 reports of Klarna scaling back or exiting Australia, unlike other methods, confirming "whether the service is still operating" must come before confirming "whether it can be integrated." We recommend first verifying the availability of acceptance in Australia through consultation with Hecto Financial, and only then, if available, discussing contract terms (fees, settlement cycle, currency options) on a Korea-registered-company basis.

• Business registration country

  Confirm eligibility to contract on a Korea-registered-business basis

• Sales channel

  The integration method and priority vary depending on your online sales channel mix, such as owned mall, open marketplace, or mobile app

• Product category

  Check in advance whether your products fall under a category restricted by Klarna's merchant policy

• Local regulatory compliance

  Confirm compliance with Australia's payment and foreign exchange regulations (see official sources below)

To the extent the service remains available, Klarna transaction proceeds are received in AUD and, after currency conversion, paid out in the contracted currency of USD, KRW, or JPY. Refund and dispute-handling procedures may also change depending on the status of Klarna's business in Australia, so we recommend confirming the service-continuity risk in writing at the contracting stage, along with the settlement cycle and refund deadlines.

• Reserve Bank of Australia (RBA) and Australian Securities and Investments Commission (ASIC)Official information on Australia's payment systems and consumer credit regulation. If the content on this page differs from actual regulations, the official source takes precedence.