<type name="Klarna\Kp\Gateway\Command\Authorize">
    <arguments>
        <argument name="builder" xsi:type="object">
            Klarna\Kp\Model\Api\Builder\Kasper
        </argument>
    </arguments>
</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 tells the Object Manager that when a user wants a Klarna\Kp\Gateway\Command\Authorize object that the following arguments should be used in the foo object's constructor.

• $builder = new Klarna\Kp\Model\Api\Builder\Kasper (...)

<virtualType name="KPCommandPool"
             type="Magento\Payment\Gateway\Command\CommandPool">
    <arguments>
        <argument name="commands" xsi:type="array">
            <item name="authorize" xsi:type="string">
                Klarna\Kp\Gateway\Command\Authorize
            </item>
        </argument>
    </arguments>
</virtualType>

This is a virtual type configuration.

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

This virtualType configuration tells the Object Manager when a user wants a virtual KPCommandPool object that it should return a Magento\Payment\Gateway\Command\CommandPool object.

This configuration tells the Object Manager that when a user wants a KPCommandPool object that the following arguments should be used in the foo object's constructor.

• $commands = [...items...];