Klarna is one of the largest Swedish banks today, offering online banking payment options to 85 million consumers through 200,000 merchants. The bank is in 17 countries, including Austria, Denmark, Finland, Germany, Norway, The Netherlands, the UK, and the US. Some of the world’s largest brands integrate with Klarna, including Timberland, Sephora, H&M, The North Face, and more.
One of the biggest draws to Klarna is how many choices it offers to customers regarding payment. There are three different payment options you can integrate using a payment page builder—Pay Later, Pay Now, and Slice It. With all of these options, the bank enables upfront payments, protecting both the customer and the merchant against fraud.
Choosing Pay Later for Klarna
Pay Later allows a shopper to complete a transaction and defer the payment for a couple of weeks. He is usually given 14 to 30 days to settle the full amount. When the customer selects Pay Later, he will undergo the following process:
- At the e-commerce store’s checkout screen, he chooses Pay Later as his transaction option. Then, he is redirected to the hosted page.
- At Klarna’s redirect page, he may be prompted to enter additional details like his birth date. After this, his order goes to the next step.
- The bank runs an automatic credit search using his bank details and the information he supplied on the redirect page. Once it finishes, the purchase is approved.
- The browser automatically redirects to the merchant website, where the user could see that the order is complete.
Choosing Pay Now for Klarna
If the customer wishes to pay at the instant that he transacts, he can choose Pay Now. This option accesses credit stored in a digital wallet; he can facilitate bank transfers or card purchases through it.
- At checkout, when the customer chooses Pay Now, his browser will redirect to the Klarna hosted page.
- If he is a new user, he will get a window prompting him to enter his account credentials. If not, he can use his previously saved information to go to the next step.
- Klarna confirms the transaction and debits the digital wallet. Then, the customer’s browser returns to the merchant’s website.
Choosing Slice It for Klarna
If a customer wants to make staggered payments, he can choose Slice It, which enables him to pay for the item over a period. There are various installment plans, allowing the shopper to select a payment scheme that fits his budget.
- A customer can select Slice It at the checkout screen, which will redirect him to Klarna’s hosted page.
- Once he is here, the shopper can choose the installment plan that best suits his budget. The bank offers anywhere from three to 36 months to pay, with varying interest rates.
- After he confirms, the browser will ask him for additional details, which the bank uses for its instant credit search.
- If the transaction is approved, the browser redirects to the merchant’s website and completes the checkout.
Klarna lets your customer choose the payment option that suits his budget. Payment confirmation is immediate for Pay Now in all regions. For most countries, Slice It and Pay Later are also immediate. In the US and the UK, merchants get a temporary confirmation, and the payment clears after five business days. Overall, it gives customers a simple, flexible way to shop on your website.
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