Klarna or Clearpay?

[Marksw76]

Hi

We're shortly going to be launching our new eComm store and are researching BNPL options.

In the UK it seems the two dominant are Klarna or Clearpay but need to decide which to offer.

Whilst Klarna still seems to be the dominant, Clearpay seems to be rapidly on the ascent.

Anything we need to know about either? Horror/success stories?

Thanks!

 

[finleydesign]

If you are new, you may find you don't have a choice of either, they have a number of account criteria settings, minimum turnover etc.

I'd apply for both in the hope you may get one.

 

[Marksw76]

That's interesting, thanks.

The store is being run as a sideline from our main business, but is actually owned and run by the larger parent company so I guess we can apply and use the turnover from this

 

[Dillon Lawrence Ltd]

Why limit to one?

 

[Marksw76]

Yeah good point, just following what I've seen from a lot of other stores. A lot seem to just back one horse.

 

[Dillon Lawrence Ltd]

Most large stores such as Asos I’ve seen tend to offer at least both with additional smaller players such as Laybuy and also PayPal Credit.

 

[Dillon Lawrence Ltd]

That's interesting, thanks.

The store is being run as a sideline from our main business, but is actually owned and run by the larger parent company so I guess we can apply and use the turnover from this

You’d need to see what they ask for. They may or may not reference sales from the store.

 

[Marksw76]

You’d need to see what they ask for. They may or may not reference sales from the store.

Yes sounds like it, our actual parent company is 10+ years old with a realistic turnover figure so we'll have to see how they assess it. Although never actually had any issues with these type of checks before.

Never run our own store before but have been involved in marketing ecomm for a number of years now. So see Klarna etc as a marketing benefit as much as anything else

 

[Dillon Lawrence Ltd]

Yes sounds like it, our actual parent company is 10+ years old with a realistic turnover figure so we'll have to see how they assess it. Although never actually had any issues with these type of checks before.

Never run our own store before but have been involved in marketing ecomm for a number of years now. So see Klarna etc as a marketing benefit as much as anything else

It largely depends on what you’re selling as to the appeal over traditional finance. If it’s £5000 sofas Klarna won’t even offer pay monthly options.

I forsee that it’s all about to become much more highly regulated too

 

[Marksw76]

It largely depends on what you’re selling as to the appeal over traditional finance. If it’s £5000 sofas Klarna won’t even offer pay monthly options.

I forsee that it’s all about to become much more highly regulated too

Yeh makes sense, we're not about that....£18 average product cost aimed at millenials hence Klarna

 

[Dillon Lawrence Ltd]

From experience, Klarna have the much easier onboarding experience and less stringent requirements compared to Clearpay. I don’t remember Klarna even having a turnover requirement.

It doesn’t really matter to Klarna. They’re offering virtual pay monthly cards to consumers now so even stores that don’t offer Klarna in effect do…

 

[japancool]

f you are new, you may find you don't have a choice of either, they have a number of account criteria settings, minimum turnover etc.

We use Klarna. We were newish and didn't have an issue.

Their pay-in-3 was expensive but they recently dropped the price.

 

[Marksw76]

From experience, Klarna have the much easier onboarding experience and less stringent requirements compared to Clearpay. I don’t remember Klarna even having a turnover requirement.

It doesn’t really matter to Klarna. They’re offering virtual pay monthly cards to consumers now so even stores that don’t offer Klarna in effect do…

Thanks sounds encouraging. I understand Klarna to be cheaper for merchants than CP. I have to admit, neither are that open about requirements. From what I understand its judged on a case by case basis. Its certainly promoted as to be as easy to set up as Shopify payments , altohugh I wasn't expecting it to be this simple. My main concern was for refunds etc, avoiding the possibility of getting overly complex with a store that is very much a trial exercise. Set up as much to test marketing strategies as well as actually turn a profit

 

[Marksw76]

We use Klarna. We were newish and didn't have an issue.

Their pay-in-3 was expensive but they recently dropped the price.

Thanks, are refunds etc fairly straightforward?

 

[japancool]

Thanks, are refunds etc fairly straightforward?

Well, we don't do a lot of them but yes. Most of the time, I just don't capture the order if I need to refund.

 

[Marksw76]

Well, we don't do a lot of them but yes. Most of the time, I just don't capture the order if I need to refund.

Ace thanks. Sorry perhaps a stupid question but what did you mean when you say you dont capture the order? Doesn't Klarna payments go straight through into your Shopify etc admin?

 

[japancool]

Ace thanks. Sorry perhaps a stupid question but what did you mean when you say you dont capture the order? Doesn't Klarna payments go straight through into your Shopify etc admin?

Klarna BNPL orders go through 2 stages. When the order is placed (and accepted), it appears in their system. You then have to capture the order, which indicates it has been fulfilled. You're not supposed to do this until you physically send the order.

A week to 3 days later, you get the money.

 

[Marksw76]

Klarna BNPL orders go through 2 stages. When the order is placed (and accepted), it appears in their system. You then have to capture the order, which indicates it has been fulfilled. You're not supposed to do this until you physically send the order.

A week to 3 days later, you get the money.

Thats good to know, thanks.

They don't seem to provide a step by step detail anywhere all seems a bit vague

 

[TSK]

I setup Klarna from day one on my Ecom store and it was simple, flexible and offered a lot of customisation and support. Never had a problem with them and their merchant centre is great to track payments etc.

Clearpay. Wow..... I set them up a few months ago but i wasn't happy with the customisation, or lack of it, so we I reached out to be their support team. I was told that they couldn't help. The logo looked weird and the format just didn't sit in the right for us. So I uninstalled it all. Then the problems started.

Clearpay started sending me loads of chaser emails asking why I had uninstalled their programme and I noticed that at exactly the same time every day a Clearpay bot was abandoning cart. I contacted Clearpay to ask them what was going on and they denied it was then and refused to help. The bot enters their London address, email and Tel number but they deny it's them.

To this day, at the same time every day on the same product they abandon a cart on my store. It impacts my stats and I've had to block their email from my ECRM providers.

A truly horrible two Bob business, at least in the UK. Just my pennies worth.

 

[Marksw76]

Thanks a lot for your reply, food for thought.

From what I've read so far and taking into account your comment, Klarna seems to be the favourite.

Presumably there are no ongoing merchant fees and its just a percentage (4%?) of sales?

 

[japancool]

Presumably there are no ongoing merchant fees and its just a percentage (4%?) of sales?

The fee recently dropped to 3% (approximately).

 

[Guy Incognito]

We offer Klarna and SplitIt. There are loads of other ones as well.

 

[fisicx]

I’d also add PayPay as an option. Still a hugely popular means of payment. I know some who use it almost exclusively.

 

[JEREMY HAWKE]

Im not a retailer but looking up these companies to me it would be a no brainier for any retailers here on UKBF !
It is the difference between not gaining quite a lot of sales and getting some money in the bank . Furthermore the spreading of payments for the customer would have a good long term positive effect on repeat business !

 

[japancool]

Klarna is expensive. We use Stripe alongside Klarna, and the vast majority of our sales go through Stripe.

 

[Matt.smith.TP]

As a Consumer I've found Klarna to be the more known name in the UK and trusted

 

[WhizzPeople]

Klarna is pushing high to extend the market. I would prefer Klarna.