Klarna

What is Klarna and what do they do?

Klarna is a Swedish fintech company founded in 2005, specializing in payment solutions and consumer financing. It provides merchants with a platform that allows consumers to make purchases online and manage payments flexibly. Klarna operates as a payment processor and offers a variety of services designed to enhance the shopping experience for both consumers and retailers.

The core services provided by Klarna include:

• Pay Later: This feature allows consumers to complete their purchases and defer payment for a period of time, typically 14 or 30 days, giving customers time to evaluate their purchases before committing to payment.
• Installments: Klarna offers a payment plan option, enabling customers to choose a financing plan that spreads the cost of a purchase over several months, making larger purchases more manageable.
• Direct Payments: Klarna also allows consumers to pay instantly using various payment methods at checkout, ensuring a seamless transaction for shoppers.

Klarna partners with a range of merchants across e-commerce sectors, providing tailored solutions for businesses of varying sizes.

Who is it for?

Klarna serves a diverse array of industries, particularly in e-commerce. It is particularly prevalent among online retail platforms, fashion brands, electronics, and home goods stores. Klarna's services can be beneficial for small to medium-sized enterprises (SMEs) as well as larger retailers aiming to enhance their checkout experience and improve customer conversion rates. Klarna's reach includes businesses in multiple regions, primarily focusing on markets in Europe and North America.

Why do businesses choose Klarna?

Businesses adopt Klarna for several confirmed reasons, enhancing their competitive edge and improving customer satisfaction. Klarna’s offerings are designed to simplify the payment process, which often leads to increased sales and customer loyalty. Verified strengths and benefits of using Klarna include:

• Higher Conversion Rates: By providing flexible payment options, businesses can reduce cart abandonment rates, as customers are more likely to complete purchases when they have payment choices.
• Increased Average Order Value (AOV): The option for installment payments encourages customers to spend more, as they can break down costs into manageable payments.
• Customer Insights: Klarna offers businesses valuable analytics regarding consumer behavior and preferences, enabling targeted marketing efforts and better inventory management.
• Brand Association: Being associated with a reputable payment provider like Klarna can enhance a business's credibility and attract more customers.
• Seamless User Experience: Klarna's intuitive checkout process is designed for ease of use, creating a positive shopping experience that can lead to repeat purchases.

Businesses using Corefy can simply obtain a MID from Klarna and connect it to Corefy’s dashboard in a few clicks, without dealing with any integration work.

Is Klarna trustworthy?

Klarna operates under the regulatory frameworks of the countries in which it operates. It is licensed as a bank in Sweden and holds a European e-money license, ensuring compliance with relevant financial regulations. Klarna has implemented several security measures to protect user data, including encryption technologies and adherence to the EU's General Data Protection Regulation (GDPR). The company conducts frequent security audits and works to mitigate fraud risks, establishing a trustworthy environment for both consumers and merchants.