Klarna and the tradeit ecommerce platfrom
Klarna is one of Europe's largest banks and provides payment solutions for 60 million consumers around the world. Klarna offer direct payments, pay after delivery options and installment plans and tradeit has been directly integrated with this service enabling our merchants to offer their customer a further range of payment options on checkout.
Although fairly new in the UK, payment after delivery is quite common in several European markets such as Germany and the Nordic countries, and as a result tradeit can be integrated with Klarna to provide common payment methods for ecommerce users in those regions.
Enabling ecommerce customers to place orders using just their postcode and email address, Klarna speeds up and simplifies the order process for customers meaning an increase in orders and a decrease in bounce rates, particularly at checkout. Klarna offer three main payment options:
Pay later in 30 days
This option allows consumers to purchase goods with no interest or fees for 30 days. After that they will be invoiced for payment of the goods in full which can then be paid via credit/debit card. There is an option for consumers to only pay the minimum payment but the remaining debt then becomes liable to interest, in a similar fashion to a credit card.
Pay in 3 installment (interest-free)
Similar to option one, this allows consumers to spread their repayments over three equal payments. The consumer inputs their credit/debit card number and the first installment is taken immediately and the following two payments are taken after 30 and then 60 days from those stored card details. This service is only available in the UK, although there is a pay in 4 installments option for US customers.
Flexible financing (Slice It)
The third option is flexible financing which is only available on goods over a certain value. This means that payments can be spread over 6, 12, 18, 24, 36 or 48 months depending on which options the merchant has agreed with Klarna to offer, but are subject to interest. Similar to option one, the consumer can view their credit terms in their account and see statements of any outstanding balance and repayment terms. Again, similar to a credit card, consumers can make a minimum payment or clear the balance. Repayments are settled via direct debit (autopay).
ECOMMERCE CASE STUDY
With different channels supporting different international markets Crabtree & Evelyn wanted to ensure they delivered a localised solution for each. Alongside local currencies, languages, fulfilment types and taxation systems, this also meant supporting local payment options. In order to support customers using their German channel, they introduced Klarna's "Buy now, pay later" service which is the most popular payment method in that country.