Buy Now Pay Later Klarna

If you keep an eye on fintech, perhaps you know that outside the wondrous world of crypto, Buy Now Pay Later is one of the hottest trends right now. 

The outbreak of COVID-19 drastically changed consumer trends. Customers now expect more convenience when shopping online, and merchants are trying their best to meet their expectations. 

Perhaps this explains why Afterpay Klarna has become popular among shopping freaks. The company offers several interest-free payment options, including Pay in 4, 30 days, or 3 installments. 

We’ll explore more about the BNPL, what it is, and what Klarna has in store. 

What Is Buy Now Pay Later and How Does It Work?

The Buy Now Pay Later model generated $100 billion in sales in 2021, which is predicted to grow in the future.  Since the pandemic surged online shopping trends, around 51% of customers agreed to use BNPL during the crisis. Another data reveals that Gen Z utilized BNPL sixfold from 6% to 36% in the previous year. 

But how exactly does BNPL work, and why are customers increasingly turning towards this payment option? 

The Buy Now Pay Later model eases the payment for the customers. Instead of paying the total amount in one go, consumers can spread their costs into smaller amounts. This allows them to pay within weeks or months over a short period. So, a customer typically dropping a high-end product because of its hefty price can opt for this payment option. It allows them to pay at their convenience. On top of that, the choice is interest-free, which is another plus. This, in turn, not only benefits merchants – with more people purchasing products – it also enables consumers to buy their favorite products. 

Buy Now Pay Later Klarna

With its headquarters in Stockholm, Sweden, Klarna was officially founded in 2005. Currently, it is one of the highest fintech companies in Europe and the second highest globally. 

The company offers Ecommerce payment solutions to shoppers and merchants in the form of BNPL.  All you need to do is install an app and register yourself.  Regardless of whether you plan to purchase online or in-store, Klarna converts all your favorite stores into Buy Now Pay Later stores. 

The firm partners with retailers worldwide and offers convenient payment solutions to consumers. We’ll uncover how Buy Now Pay Later Klarna works. 

Pay In 3 Installments

As the name implies, the Pay in 3 installment model allows you to divide your payment into three equal installments. 

There’s an option at the checkout, “Buy Later in 3 interest-free installments.” You simply have to click this option and enter your credit card details. 

Lucky for you, there is no interest in this BNPL model. Beyond that, you’re not required to pay any fee for using a credit or debit card by Klarna. 

Nonetheless, your bank might charge you a fee or interest if you pay with an interest-bearing credit card. 

Pay In 30 Days 

This payment option allows you to receive your product and gives you the freedom to pay in 30 days – without a fee or interest. 

In the app, you’ll have the choice to complete your payment earlier or extend it to a later date. 

Whether or not you’re eligible for this payment option is something you’ll get to know at the time of checkout. 

When the store ships your order, you’ll receive an email highlighting all your payment details. 

Pay In 4

You also have the option to pay later in 4 installments. You can purchase your favorite product and choose to Pay in 4 during the checkout using your debit or credit card. 

Again, Klarna doesn’t charge you any fee or interest for this option. However, if you fail to make timely payments, it may happen otherwise. 

For instance, if you exceed 10 days of the scheduled payment, you have to pay a late fee of $7. Note that this fee won’t be more than 25% of the agreed payment amount. 

Can I Use Klarna for Best Buy? 

Best Buy, an American consumer electronics retailer, is one of the most popular websites offering in-store pickups and 2-day shipping of thousands of products. 

Luckily, it accepts Klarna as one of the payment options. 

To use Klarna Best Buy, you need to install the Klarna app, get yourself registered, visit the Best Buy homepage, and shop for anything. 

Best Buy accepts visa cards as one of their payment options, and hence you can use Klarna’s visa card to make your payments. 

How BNPL Benefits Merchants

How BNPL benefits customers is pretty straightforward. It offers them a flexible payment option, and they get to purchase expensive products that are otherwise difficult to buy in a single payment. 

But does the Buy Now Pay Later model help merchants, too? Well, something befitting to customers is certainly advantageous to retailers. 

We’ll explore how the BNPL model is changing the game for merchants. 

More Sales

The BNPL option allows customers to manage their budget and purchasing. On top of that, because companies like Klarna offer interest-free payment solutions, customers do not hesitate to purchase and, well, pay later. 

If you run an online store, adding the Klarna payment option will boost your sales. 

New Customers

If you’ve failed to attract new customers, BNPL is your best bet. Consumers purchasing from your brand will undoubtedly recommend the convenient payout option to their peers. So, you have a high chance of getting new customers. 

Increased Conversion

A visitor on your site sounds like good news. But if they don’t convert, perhaps they won’t add to your business growth. 

BNPL model encourages the purchase, and the customer otherwise abandoning the cart or dropping a product because of its high price might complete a purchase. 

Statistics reveal that sites using the Buy Now Pay Later option experienced a 6% conversion rate compared to 4% for those that do not offer this payment solution. 

Conclusion

Though online shopping was a thing even before the pandemic, the crisis accelerated the trends. More customers purchasing online seek more convenient payment options, and the Buy Now Pay Later eases shopping for them. 

Buy Now Pay Later Klarna allows you to split your purchase into interest-free payments. Besides, Oceanpayment also offers 500+ payment methods in more than 200 countries worldwide, simplifying digital payment solutions for you.