Tens of thousands of online merchants in the US, UK and seven other European countries now can offer instant financing options to their customers courtesy of an integration between Klarna, one of the world’s most innovative payment providers, and Shopify, the leading cloud-based, multi-channel commerce platform for small and medium-sized merchants.
The completion of technology integration between both companies means that merchants in key markets in Europe and the U.S. whose businesses are powered by Shopify, can now offer flexible financing options alongside credit and debit cards. Depending upon the country, those options include flexible or fixed month-to-month payments, promotional interest rates and in Europe, the chance to delay payment for up to 14 days at no extra cost. The merchant does not bear the credit or fraud risk, and is paid in full for all approved purchases.
The announcement was made at Shoptalk, a major ecommerce trade event being held at the Aria Resort and Casino through March 22.
“Today’s consumers want flexible purchasing and financing options and our integration with Klarna provides another alternative for our merchants,” said Mohammad Hashemi, Sr. Product Manager, Payments, at Shopify. “We’re always looking for ways to reduce friction at checkout and are excited about Klarna’s new offering.”
Online financing for consumer purchases is a relatively new service; consumers are most familiar with it from experiences in brick and mortar stores. Klarna’s online process, seamlessly integrated into the merchants’ checkout processes, only requires a few fields of information and lets customers know instantly if they qualify for financing. It is much quicker and more efficient compared to competing services, with redirects, lengthy forms and unclear information.
“Klarna is dedicated to helping merchants provide flexible financing and payment options to consumers wherever and however they shop,” said Jim Lofgren, GM Klarna North America. “Our integration with Shopify will expand our reach to online stores throughout North America and Europe looking for ways to improve their customers’ online and mobile shopping experiences.”
Klarna is a leading payments provider that aims to make the payment process simple, smooth and safe for customers and its merchant partners. The company, founded in 2005, was recently named as one of the top disruptor companies in the world by CNBC.
Klarna works together with 70,000 merchants to offer payment solutions to more than 60 million users in Europe and North America. The company’s North America offices are in Columbus, Ohio and in New York. Klarna has 1,500 employees and is active in 18 countries. Klarna Credit is issued by WebBank, member FDIC.
Source: Klarna Press Release