What is the Klarna payment method?
Klarna is a payments services provider offering users the freedom to pay for their online shopping in a number of ways:
- Pay Now (direct payments through bank transfer)
- Pay Later (for customers to buy first and pay later)
- Pay in Installments (for customers to pay in four interest-free installments)
Klarna payment options are available in The United States, Australia, and several European countries, including Denmark, Germany, Austria, The Netherlands, Finland and Great Britain.
Accepting Klarna payments gives your shoppers the flexibility to choose a payment method that’s most comfortable, at no risk to your business. Boost your sales, and reach more customers with no hidden costs.
- Risk free revenue: Klarna merchants get paid upfront, with no worries about invoicing or collecting money from customers.
- Getting a share of the Klarna pie: Klarna payment options number over one million transactions a day, and are used by over 205,000 merchants globally, serving over 85 million shoppers. Klarna merchants are also part of a preferred payments network with over 10% market share of North Europe’s e-commerce sector.
- Higher conversion and increased sales: research has shown that adding Klarna at your checkout can increase conversions by 44%. Merchants who offer Klarna’s Pay in Installments option can see up to 68% higher average order values.
How does Klarna work for merchants?
Klarna’s Pay Now is a direct transfer payment method where customers log into their preferred banking environments to authorize a funds transfer from their bank accounts. Pay now was previously known as Sofort banking payments. Merchants receive real-time confirmation, with little to no risk of chargeback fraud.
The Pay Later method is a post-purchase option which allows customers to pay up to 14 days after receiving their products. Similar to AfterPay, shoppers need to undergo a real-time credit assessment when selecting the Pay Later option at the checkout. If your customer returns a portion of the order, the final bill is adjusted accordingly. Merchants are guaranteed payments five days after orders are shipped out, and Klarna takes care of all costs associated with fraud-related disputes.
The Pay in Installments method lets your customers spread the cost of a purchase over four installments at no additional cost. Merchants receive full payment up front, while Klarna handles all invoicing and installments with the customer directly.
1. At the checkout, Shopper selects Klarna Pay Later and proceeds with the payment. They are then redirected to the Klarna page or app.
2. Shopper fills in top-of-mind details for Klarna to assess eligibility for the payment.
3. Once purchase is approved, the shopper is redirected back to the merchant page.
How to accept Klarna payments
Payvision supports all Klarna payments, with a transparent pricing structure that puts you in the know, with no hidden fees involved.
Our simple but powerful API lets you integrate Klarna into your business quickly and securely, and we’ve got several other integration options to choose from as well.
Check out all the documentation you need to get your webshop started with Klarna, and if you have any questions, our dedicated support team is on standby to help.