Klarna, an alternative online payment provider based in Sweden, this week announced it has partnered with e-commerce platform Shopify to enable consumers to buy now/pay later for online purchases. Under the agreement, Shopify merchants in nine countries including the U.S. and the U.K. can offer instant financing to their customers and Klarna assumes the credit risk—similar to the way it bears the fraud risk when authenticating online purchases using an email address or postal code. Klarna, which signed a similar deal with omnichannel solutions provider Radial last month, seems to be emphasizing its credit product over its traditional online payment method.
“Today’s consumers want flexible purchasing and financing options and our integration with Klarna provides another alternative for our merchants,” said Mo Hashemi, senior product manager for payments, at Shopify. “We’re always looking for ways to reduce friction at checkout and are excited about Klarna’s new offering.”
The deal with Shopify extends to merchants using the service in Austria, Denmark, Finland, the Netherlands, Norway, Sweden, the U.S. and the U.K.
- Selecting the Right Vendor
- Optimizing Conversion Rates through Payment Strategies