FreshBooks Adds Klarna Payment Options for US and Canadian Businesses

Klarna on October 21, 2026 announced a partnership with FreshBooks that brings Klarna’s full suite of payment methods directly into FreshBooks’ invoicing and payment flows, with no additional setup required for merchants. The integration is powered by Stripe, and FreshBooks users in the United States and Canada can now offer Klarna’s payment methods to their own customers at checkout.

FreshBooks is small business management software built for service-based solopreneurs and small teams. Under the partnership, its users can present three ways to pay. A plumber invoicing for a routine service call can accept payment in full. A mechanic billing for a mid-size repair can let a customer split the cost into four interest-free installments. A contractor invoicing for a larger renovation job can offer financing, allowing the customer to pay over time.

Lisa Robinson, Head of Partner Success, US East Coast and Canada at Klarna, said small businesses and entrepreneurs are the backbone of the U.S. and Canadian economy and that getting paid reliably and on time keeps them running. “By partnering with FreshBooks, business owners can now use Klarna to offer their customers more ways to pay – in full, in four interest-free installments, or financed over time,” Robinson said. She said customers receive the payment flexibility while FreshBooks users retain predictable cash flow.

Jeffrey Imm, GM of Financial Services and Payroll at FreshBooks, said enabling merchant users to process and reconcile payments directly within their business software is a convenience for the merchants and for their clients and customers. “Offering BNPL as a payment choice brings even more convenience to the process, and has been shown to increase small business speed of cashflow and revenues substantially, while removing their risk of not receiving payment for their product or services,” Imm said. He said FreshBooks is now making Klarna available for users eager to offer BNPL.

How Pay Over Time Works in FreshBooks Payments

Buy Now, Pay Later inside FreshBooks runs through FreshBooks Payments, the company’s payments feature powered by Stripe. According to FreshBooks’ Buy Now, Pay Later page, a merchant selects Buy Now, Pay Later as a payment option on an invoice, the client completes an approval process, and the merchant is paid upfront, minus applicable transaction fees, while the provider handles repayment. FreshBooks states the feature is exclusively available with FreshBooks Payments, subject to eligibility.

FreshBooks’ contractor guide lists the BNPL fee at 6% + $0.30 per transaction across Affirm, Afterpay, and Klarna. Within FreshBooks Payments, Affirm is available for invoices in Canadian and U.S. dollars, Afterpay is available for eligible U.S.-dollar invoices, and Klarna is available for clients in the United States and Canada, according to the guide. The customer sees available options based on eligibility.

For BNPL with Affirm, FreshBooks lists eligible invoices from a $50 minimum to a $30,000 maximum in Canadian or U.S. dollars. The option requires a fully verified payments account, applies to single invoices for the full amount rather than deposits or recurring templates, and is intended for business-to-consumer invoices where the business and the client are in the same country. For Afterpay, FreshBooks describes a Pay in 4 plan that splits a total into four interest-free payments generally over six weeks, with the full payment schedule shown at checkout. The merchant receives the full amount upfront, minus the transaction fee, while Afterpay manages the installment schedule with the client, according to FreshBooks.

Klarna’s Existing Stripe Partnership

On January 14, 2025, Klarna announced a strengthened partnership with Stripe under which Stripe-powered businesses in 25 countries could instantly offer Klarna to their customers. Klarna said the improved partnership had helped double the number of new merchants offering Klarna for the first time in the fourth quarter of 2024, compared with previous quarters.

The January 2025 release cited a Stripe study that found businesses offering buy now, pay later generated up to 14% more revenue from increased conversion and higher average order values. It also described a Stripe feature that lets businesses A/B test payment methods, including Klarna, without writing code. Klarna offers consumers a choice of immediate payments, short-term interest-free BNPL, and longer-term financing, and the company states that about 30% of the payments it processes are immediate payments.