Paying by installments and “buy now, pay later” financing models are picking up steam with consumers and merchants alike. While financing is not a new concept, it’s traditionally been applied to larger-ticket items like cars, furniture, electronics or home appliances – but not anymore. Checkout.com has partnered with Klarna so merchants can offer this payment model to their customers for any purchase, big or small.
Why should you accept Klarna?
Installment payment plans help retailers capture customers who might not otherwise make a purchase and can also increase the average order value. According to a recent global survey by BigCommerce, 31% of consumers said they would not have made a purchase if a payment plan wasn’t offered, and 36% of respondents said that financing enabled them to buy a more expensive option than they were previously considering. With Klarna’s interest-free plans, those purchase decisions become simple. Customers are also protected by going through a pre-authorization process and covered under a buyer’s protection policy.
With Klarna, businesses are guaranteed upfront payment, even though the customer pays over time. Your business is also fully protected from fraud and credit risk.
Klarna has merged with Sofort, which is now represented as Pay Now under the suite of Klarna payment products. Pay Now is also offered through Checkout.com and will require a separate integration from the Klarna integration. E-commerce businesses based in the EU can accept Klarna installment and invoice payments from customers in Denmark, Sweden, Norway, Finland, Germany, Austria, Netherland, and the UK through Checkout.com, with more regions available soon.