<type name="Klarna\Core\Helper\KlarnaConfig">
    <plugin sortOrder="100"
            name="klarnaKpKlarnaConfig"
            type="Klarna\Kp\Plugin\Helper\KlarnaConfigPlugin"></plugin>
</type>

This is a type configuration.

This configuration is for the base area. Base area configurations will apply to all the sub-applications.

This configuration also tells the object manager to use the Klarna\Kp\Plugin\Helper\KlarnaConfigPlugin plugin class with Klarna\Core\Helper\KlarnaConfig objects.