Klarna for Business

Klarna is a buy now, pay later app that lets shoppers split purchases into interest-free payments, making it easier for them to buy now and pay over time. Adding Klarna can increase conversions and average order values by giving customers more spending flexibility.

But does it make sense for your business? Let’s take a closer look.

What Is Klarna For Business?

Klarna is a buy now, pay later (BNPL) service that lets customers finance purchases through a short-term loan issued by Klarna. Shoppers can split their purchases into equal installments, making higher-priced items more accessible and reducing friction at checkout.

BNPL continues to grow in popularity, especially among:

• Younger shoppers: About 75% of Gen Z and Millennials use BNPL.
• Higher-priced purchases: Over one-third of BNPL users finance items costing $500 or more.

If you sell big-ticket products or cater to younger buyers, Klarna can be an easy win. But even outside those categories, offering Klarna gives customers more flexibility and provides merchants with an affordable way to boost conversions.

How Does Klarna For Business Compare?

Klarna is not the only buy now, pay later option. Here’s how it stacks up against some other popular apps.

Who Can Use Klarna For Business

Any registered business with a functioning eCommerce website can apply to accept Klarna. Your site must clearly display:

• Product prices and currency
• Accurate product descriptions
• Terms and conditions
• Contact information (email or phone)
• Return and shipping policies
• Estimated delivery times

Klarna typically approves or denies applications within 24 hours.

The service is available in the US and 19 other countries, including Australia, the UK, Switzerland, and many EU nations.

Is Klarna Good For Business?

There are several advantages to using Klarna in your business:

• More payment flexibility: Klarna gives customers another way to pay, which is especially appealing to younger shoppers with limited credit or cash flow.
• Higher order values: Klarna reports that merchants see a 41% increase in average order value after offering BNPL.
• Stronger customer trust: Shoppers complete purchases through Klarna’s one-click checkout, so they don’t have to enter card details on your site.

Overall, Klarna can boost conversions and order size, while giving customers a smoother, more secure checkout experience.

How Klarna Makes Money

Klarna offers shoppers interest-free financing, but merchants cover the cost. When you accept Klarna, you pay a percentage of each sale plus a flat transaction fee.

The trade-off:

• You get paid in full upfront,
• Klarna assumes all credit risk, and
• You may see higher order values that offset the added fees.

For many businesses, the increased spending and reduced risk help justify the cost of using Klarna.

What Are Klarna Merchant Fees?

Klarna doesn’t publicly list its pricing, but most US merchants pay 5.99% + $0.30 per transaction. This fee includes payment processing, and merchants receive the full purchase amount minus these charges.

Some platforms (such as Shopify) may add their own transaction fees. High-volume businesses earning over $5 million annually may be able to negotiate lower rates or adjust pricing to offer better terms to customers.

Klarna does not charge monthly or sign-up fees; merchants only pay per transaction. Full pricing details are reviewed during onboarding.

How Klarna Works for Customers

Klarna lets shoppers take out short-term financing with only a soft credit check. Each purchase is approved at checkout, similar to a point-of-sale credit line.

Most plans are interest-free as long as payments are made on time. Klarna’s main options include:

• Pay in 4: Four interest-free installments over six weeks
• Pay in 30: Full payment due within 30 days
• Pay Over Time: Longer-term financing with monthly payments

Klarna also offers buyer protection that allows customers to pause payments for missing or defective orders, along with a One-Time Card for online or in-person purchases.

Note: Longer-term financing terms and interest-free eligibility vary based on creditworthiness and approval.

How To Get Started With Klarna For Business

If Klarna fits your business, you can sign up directly through the Klarna website and enable it as a payment option at checkout. Once activated, customers can choose the installment plan they prefer during payment.

Klarna integrates with most major eCommerce platforms, including:

• Shopify
• WooCommerce
• 3dcart
• BigCommerce
• Magento Commerce
• Stripe
• Wix
• Prestashop
• Salesforce Commerce Cloud

Businesses can also integrate Klarna using its API or SDK. Klarna provides marketing materials to help merchants promote the new payment option.

Klarna Alternatives

If Klarna isn’t the right fit, consider these other BNPL providers:

• Affirm
• PayPal In 4
• Afterpay