This analysis describes what Klarna's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
This provision operationalizes a closed-loop funding model in which customer balances function exclusively as Klarna platform credits rather than as transferable funds. This structure ties customer financial resources directly to continued use of Klarna's service offerings.
This standalone provision regarding closed-loop fund restrictions was removed, though the language was absorbed into the Cashback provision in the current version.
View full change record →Users who maintain a Klarna balance account are bound by restrictions on how those funds may be deployed—specifically, balance funds cannot be withdrawn as cash or transferred outside the Klarna platform and may only settle purchases made through Klarna's payment system. This mechanism creates a segregated account structure separate from standard banking or payment rails.
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Except as set forth below, or as otherwise approved by us, the services are for your personal, non-commercial use unless you enter into a separate agreement with us for your commercial use.
You may not display any personal contact, banking, or peer-to-peer payment information, whether in relation to you or any other person (for example, names, home addresses or postcodes, telephone numbers, email addresses, URLs, credit/debit card...)
You agree that Promotional Codes: (a) must be used in a lawful manner; (b) must be used for the intended audience and purpose; (c) may not be duplicated, sold or transferred in any manner...
"Klarna balance account required and funds can only be used within Klarna.Excerpt from Klarna's Terms of Service
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This provision operationalizes a closed-loop funding model in which customer balances function exclusively as Klarna platform credits rather than as transferable funds. This structure ties customer financial resources directly to continued use of Klarna's service offerings.
Users who maintain a Klarna balance account are bound by restrictions on how those funds may be deployed—specifically, balance funds cannot be withdrawn as cash or transferred outside the Klarna platform and may only settle purchases made through Klarna's payment system. This mechanism creates a segregated account structure separate from standard banking or payment rails.
ConductAtlas has identified this type of provision across 282 platforms. See the full comparison.
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