Klarna Conversion Rates

[JBusiness1]

Hey all,

Looking to add Klarna to my online store with the intention of driving conversion rates and increasing the AOV.

I've a few questions, and would appreciate any feedback from your own experience using the tool.

Ultimately stuck between selecting one of the two payment plans to offer my customers, these being;

1) Pay in 30 days (no interest)
2) Pay in 3 instalments (no interest)

Does anyone have any experience of the differences in potential conversion rates that the two attract, and which might perform best in driving sales?

Cheers

 

[japancool]

Why not just offer both?

 

[Nico Albrecht]

Option 2. People get 30 days free interest on their credit card anyway so 90 days seems a much better 3rd party choice.

 

[Mark T Jones]

It probably won't make a huge difference - the primary benefit you are offering isn't so much time to pay as the security of not having to pay until they have seen and accepted (and potentially returned) goods

That said, 90 days will look sweeter than 30 days.

Before you decide be sure you fully understand the difference in payments from Klarna timings, charges etc

 

[JBusiness1]

It probably won't make a huge difference - the primary benefit you are offering isn't so much time to pay as the security of not having to pay until they have seen and accepted (and potentially returned) goods

That said, 90 days will look sweeter than 30 days.

Before you decide be sure you fully understand the difference in payments from Klarna timings, charges etc

Thanks Mark - 90 days does seem like the obvious choice here.

Have looked into Klarna in some depth and as long as its hitting its advertised avg. increases in conversion (+30-40%) and AOV (+41%) it's a no-brainer and will cover the increase in processing fees.

 

[japancool]

Paypal offer the same thing at a lower cost.

 

[JBusiness1]

Paypal offer the same thing at a lower cost.

Would this be PayPal credit?

Have you got any experience working with it, and info on its impact to conversions/AOV?

 

[japancool]

Would this be PayPal credit?

Have you got any experience working with it, and info on its impact to conversions/AOV?

No, not Paypal Credit. It's called Paypal Pay-in-3:
https://www.paypal.com/uk/webapps/mpp/paypal-payin3

As far as I'm aware, this costs the merchant the same as a standard Paypal payment.

I haven't used it, I just offer Klarna's 30 days.

 

[lesliedocherty]

We have looked into Klarna a few times and both times decided against, we spoke to 4 people who switched to klarna, 2 switched back, unhappy customer, higher than described chargebacks, lack of servce and no rise in conversion rates.
Its a product that i had a sales pitch for, the pitch was great but the benefits like not having to type in your card details everytime, do not work.

Might be for some people but not for us

 

[japancool]

We have looked into Klarna a few times and both times decided against, we spoke to 4 people who switched to klarna, 2 switched back, unhappy customer, higher than described chargebacks, lack of servce and no rise in conversion rates.
Its a product that i had a sales pitch for, the pitch was great but the benefits like not having to type in your card details everytime, do not work.

Might be for some people but not for us

We offer both standard card checkout (via Stripe) and pay-in-30 days via Klarna.

Less than 10% of our orders are paid via Klarna.

 

[JBusiness1]

No, not Paypal Credit. It's called Paypal Pay-in-3:

As far as I'm aware, this costs the merchant the same as a standard Paypal payment.

I haven't used it, I just offer Klarna's 30 days.

Interesting - out of interest, why do you offer Klarna over the PayPal product?

Also, did you see much of an increase in conversions/AOV after you plugged in the 30 day offering?

 

[japancool]

Interesting - out of interest, why do you offer Klarna over the PayPal product?

Paypal won't give us a business account due to past issues I've had with them.

Also, did you see much of an increase in conversions/AOV after you plugged in the 30 day offering?

No. As I said, the vast majority of our orders just use the standard credit card payment, and the average order value is about the same as well. I have one customer who always uses it, after saying he'd never use Klarna ever again.

 

[Opinion87]

I've used the Klarna "Pay in 3 Instalments" quite a few times...

... because it's an option when buying Lego