The best alternatives to Klarna
Klarna’s transaction fees and opaque data handling push many EU merchants to look for clearer pricing and full control over where payment data is stored. Alternatives like Epos Now or SumUp offer simpler cost structures and EU-based processing, reducing both costs and GDPR compliance friction.
European alternatives
Frequently asked questions
Why are merchants switching away from Klarna?
The main reasons are high per-transaction fees, concerns about GDPR compliance due to past rulings on data transparency, and the risk of vendor lock-in. Some users also prefer solutions with clearer pricing and full EU data residency to avoid conflicts with extraterritorial laws like the U.S. CLOUD Act.
Do Klarna alternatives offer GDPR-compliant data hosting in the EU?
Yes. European alternatives like Epos Now and SumUp process and store payment data within the EU, which aligns with GDPR requirements and avoids the legal uncertainties tied to third-country transfers or U.S.-based infrastructure.
How do Klarna alternatives compare on pricing?
Most alternatives use more predictable pricing models, such as flat-rate per-transaction fees or subscription-based tiers. This can be cheaper for merchants with lower transaction volumes or those seeking simpler, more transparent cost structures than Klarna’s variable rates.
Can I migrate existing payment data from Klarna to another provider?
Migration options vary by provider. Some, like Epos Now, offer direct import tools for customer or transaction histories, while others may require manual setup. Check with the new provider for specific migration support and GDPR-compliant data transfer processes.
Which European Klarna alternative is best for small retailers?
SumUp is a strong fit for small retailers due to its straightforward setup, per-transaction pricing, and EU-based data processing. Epos Now also suits small businesses with its integrated POS and payment features, both offering simpler terms than Klarna.
Do these alternatives support the same payment methods as Klarna?
Most European alternatives support major payment methods like credit/debit cards, mobile wallets, and local options, but the exact range varies. Providers like Epos Now and SumUp cover the essentials, while others may specialize in specific regions or methods. Always verify the supported payment types before switching.