Klarna is a little too Swedish. There's a ton of fraud related issues they haven't considered. When a former employer wanted to start using Klarna in Denmark, we asked Klarna about fraud, and how they deal with it. The answer: They don't, not really in any meaningful way.

In Sweden you can just order random stuff online and have it show people door step, and have Klarna send the bill to the victim, who now has to deal with returning the 50 dildos you ordered for them.

Even when Klarna works as intended we have experience that they would make us, the webshop, pay for an item, when they failed to get the payment from the customer. The whole idea of Klarna is that they are responsible for collecting the money from the customer.

I am part-owner of a large swedish webshop company, and we happen to use Klarna. Klarna is simple and will probably work for most companies.

While it's unusual that there are cases of fraud, it does happen. Every time it has happened, it's enough for the victim to do a police report and just tell Klarna that they have been victims of fraud, and Klarna will remove the invoice due to their fraud policy. Obviously, the police report is meaningless as the police does nothing.

I wish there was a better alternative to Klarna, but sadly, I know of none.