Buy Now Pay Later
Shop now, pay later with flexible, interest-free installments or deferred payments.
Executive Summary
Klarna offers a suite of flexible payment solutions, primarily known for its 'Buy Now, Pay Later' (BNPL) options. This allows consumers to split purchases into interest-free installments (e.g., 'Pay in 4') or defer payment for a period. Beyond interest-free options, Klarna also provides longer-term financing with varying APRs based on creditworthiness, and a 'One-time card' for bi-weekly payments with a service fee. Merchants integrate Klarna into their online and in-store checkout processes to offer these payment methods to their customers, aiming to enhance sales, increase average order value, and improve customer satisfaction. Klarna manages the credit assessment, payment processing, and collection, simplifying the financial transaction for both consumers and retailers. The service is widely adopted across various retail sectors, from small businesses to large enterprises like Walmart and Amazon.
Use Cases
- Customers splitting a large purchase into smaller, manageable interest-free payments.
- Shoppers deferring payment for an item to try it before committing or to align with their next paycheck.
- Merchants offering flexible payment options at checkout to boost conversion rates and average order value.
- Consumers making in-store purchases using Klarna's integrated payment solutions.
- Shoppers utilizing a 'One-time card' for bi-weekly payments with an associated service fee.
Features
Visibility
- Flexible Payment Options Display: Merchants can display Klarna's payment options prominently at checkout to inform customers of available choices.
- Customer Account Management: Customers can view and manage their payment plans, purchases, and personal data through their Klarna account.
Intelligence
- Real-time Credit Decisions: Klarna provides instant credit decisions for customers applying for financing or payment plans.
Support
- Merchant Support Portal: Merchants can access a dedicated portal for integration guidance, troubleshooting, and general support.
- Customer Privacy Rights Management: Customers can initiate requests to access their personal data via their Klarna account's security and privacy settings.
Technical Specifications
- Architecture
- API-first architecture with native APIs for web and mobile SDKs for app integration.
- Deployment
- SaaS
- API Available
- Yes
Pricing
- Model
- Transaction-based fees for merchants; interest-free installments, service fees, or APR-based loans for consumers.
- Starting Price
- Varies by payment option; Contact sales for merchant pricing.
- Target Customer
- SMB,Mid-Market,Enterprise
About Klarna
Klarna is a global digital bank and AI-powered payments and commerce network. Founded in Sweden, it provides online financial services, including buy now pay later options, to millions of consumers and businesses worldwide.