Introducing a new addition to our payment methods suite, Klarna.
We're thrilled to announce the addition of Klarna, a leading Buy Now, Pay Later (BNPL) provider, to our suite of Alternative Payment Methods. This integration empowers sellers to offer Klarna’s four flexible ways to pay, driving conversions and Average Order Value (AOV).
Mangopay’s integration with Klarna lets platforms and marketplaces offer flexible payment options such as BNPL and installment payments.
With 150 million global shoppers and 2 million daily transactions, platforms and marketplaces can tap into a vast customer base seeking flexible payment options, opening up a significant growth potential for both platforms and their sellers.¹
Recognizing these opportunities, we have partnered with Klarna to bring a unique set of benefits to our users.
Four payment options available with Klarna
Our integration with Klarna offers 4 flexible payment options, and their availability to customers varies by country. They will see the methods applicable to their location at checkout and regardless of the payment options they select, sellers get paid upfront.
For a complete list, check out our documentation for Klarna.
1. Pay Later offers an extra 30 days to pay
Pay Later empowers customers with increased flexibility by letting them spread the cost over 30 days, facilitating a try-before-you-buy approach for new purchases, and eliminating upfront costs, ultimately offering a more manageable and convenient shopping experience.
2. Pay Over Time for payments in 3 installments.
Pay Over Time offers customers an interest-free payment plan with three installments, allowing them to spread the cost and enjoy flexibility while merchants receive full payment upfront.
3. Financing offers monthly plans between 6 - 24 months.
This payment option lets customer finance high-ticket items and spread the cost over time. "Financing" empowers customers to acquire high-value items by splitting the cost into manageable monthly installments over 6 to 24 months.
4. Pay Now allows payment in full today.
Pay Now provides customers with the immediate payment option, offering instant purchase completion.
The benefits of adding Klarna as a new payment method
Attract more customers
Offering a variety of payment methods helps attract and serve a diverse customer base. When customers have the option to choose their preferred payment method, they are more likely to complete their purchase and feel comfortable throughout the process.
Claim payment in advance
Sellers receive the total amount of the transaction immediately upfront - even if the end customer chooses to pay in installments.
Provide a frictionless checkout experience
Klarna offers a convenient and faster way to finance. Customers undergo a soft credit check during the checkout process, so no time is wasted on separate applications with difficult-to-understand plans and terms, increases the chances of successful conversions.
Increase average order value
Klarna removes the barrier to larger purchases. With interest-free installment payments, customers are less put off by expensive items as they can spread the cost of payment over time and pay back in affordable installments that fit their budget.
Fewer abandoned purchases
Offering a 'buy now, pay later' payment option provides customers with an additional payment option and makes a potentially expensive purchase more affordable, reducing the risk of purchase abandonment. According to a study by Mastercard, adding BNPL to your e-commerce website can lead to a 35% reduction in the number of abandoned purchases.²
If you are interested in learning more, please reach out to your customer success manager or contact us.
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