Founded in 2005, the Swedish payments giant Klarna is considered one of the market leaders in global payments and shopping services, with more than 90 million users worldwide (over 250,000 merchants in 17 countries, over 2 million payments a day in markets worldwide).
Klarna is a market leader in buy now, pay later (BNPL) services in Europe and the US offering three payment methods — Pay now, Pay later (interest-free installments in a set period), and Financing. Considering buy now, pay later is expected to grow 15x from 2021 to 2025 (BofA), adding a payment method like Klarna to your store is a no-brainer.
During the checkout process, consumers can select their preferred Klarna payment method (Pay now, Pay later, or Financing) based on availability in their country and the options you choose to accept. Upon filling out a credit application, approval is instant and payment details are saved for future use.
If the shopper already has a Klarna account, upon selecting Klarna at checkout, they’re redirected a Klarna hosted payment page and can select their bank to pay via bank transfer or direct debit (Pay now), or opt for the Pay later or Financing option.