Providing 90 million active customers with better and more flexible shopping and buying experiences across more than 250,000 merchants in 17 countries, Klarna is the top worldwide payment and shopping provider. In a seamless one-click purchasing experience, Klarna provides direct payments, pay-after-delivery choices, and installment plans to allow customers to pay when and how they like. The Klarna Group was established in 2014 when the firm bought SOFORT. Investors including Sequoia Capital, Silver Lake, Bestseller Group, Dragoneer, Permira, Visa, Ant Group, and Atomico are supporting Klarna.
How companies can use Klarna
Giving clients the option to Buy Now Pay Later (BNPL) might be a wise move, according to statistics from the firm, even if Klarna takes a portion off of each transaction a company makes. When merchants provide Klarna’s interest-free installment payment alternatives, the firm claims significant gains in average order size and conversion rates. Customers have the following BNPL alternatives to choose from:
30-days to pay
Before paying for an online item, you have 30 days to test it out. Consumers don’t pay interest on goods that are returned or retained if the entire purchase price is paid within the payment window.
Installments
Four equal payments are required to start interest-free payments. Customers use a credit or debit card to pay the first 25% of the purchase price at the moment. Until the whole amount is paid, the remaining 75% of the purchase price will be automatically charged to that card every two weeks.
Financing
Take out a loan to buy things, then pay it back over a 3- to 36-month period in monthly installments. At checkout, consumers may choose their payment terms and see the item’s total cost and the minimum monthly payment using Klarna.
Using Klarna as a payment option
It’s easy to include Klarna as a payment option. Customers may choose the kind of installment plan they wish to use to pay for their goods by signing up to become a Klarna partner and adding it as a payment option at checkout. In addition to Shopify, WooCommerce, 3dcart, BigCommerce, Episerver, Magento Commerce, Salesforce Commerce Cloud, and SAP Hybris, Klarna also interfaces with several other leading e-commerce systems. Additionally, you may integrate without a system or on a unique platform using Klarna’s API or SDK. Additionally, you may utilize Verifone or Vend to enable in-person sales using Klarna as an alternative. Additionally, Klarna offers specialized solutions. To inform your clients that you are providing the service, Klarna pledges to provide you with marketing materials.
The operation of Klarna for users
Customers could find Klarna to be a desirable solution. Consumers who can stick to the payback plan will like the financial freedom that no-interest installment payments afford them, and the 30-day payment option allows them an opportunity to try things before paying for them. Additionally, Klarna provides a Buyer Protection Policy for all online purchases. Klarna takes the position of middleman between the seller and the customer if a shipment is lost or arrives damaged. Even if clients choose not to pay until the issue has been handled, you will still be compensated while the specifics are worked out. Data protection and consumer privacy are ensured. High-security standards are used throughout transactions, and Klarna guarantees that private information will never be sold or given to a third party without the owner’s full consent.
Fees & pricing for Klarna
All costs charged by Klarna include credit card processing fees, which ordinarily vary from 1.5% to 2.9% of each transaction based on the terms of your contract with the third-party gateway processor:
30-day payments
A transaction charge of $0.30 and a variable fee of up to 5.99% are paid by the merchant. If a customer pays in full within the allotted 30 days, there is no interest charged.
Installments
A transaction charge of $0.30 and a variable fee of up to 5.99% are paid by the merchant. Customers must make four equal payments, the first of which is due at the time of purchase and the remaining three every two weeks. As long as they follow that payment plan, they won’t have to pay interest.
Financing
A transaction charge of $0.30 and a variable fee of up to 3.29% are paid by the merchant. Customers may choose the loan’s period, and they will pay interest following that choice. The whole cost will be shown for them to pick at the time of purchase.
