Klarna payments

[Bushman]

Does anyone use Klarna payments on their website? If so do you have any feedback good or bad please.

TIA

 

[JEREMY HAWKE]

Im guessing they would be a fairly reasonable company In the financial news last week it was reported that their customers would have their transactions reported to the credit reference agency's.

 

[WaveJumper]

Can't comment on their service but one of my son's clients the other week was telling him since adding Klarna to their website sales had soared over the weekend 80% of the sales had been through Klarna for products costing around £20.00. Apparently I hear one of the Pizza companies have added this to their payments options as well ..... Pizza on credit a sign of the times we live in

 

[JEREMY HAWKE]

Does it costs the retailer anything . They are bringing value to your business if you can sell to customers that you would not have gained before

 

[japancool]

I use them. It costs the retailer 2.99% + a small fixed fee, I think 30p. You get 2 options, pay in 30 days or pay in 3 equal instalments.

Does it make a difference? Not a huge amount, to me. I haven't seen sales soar.

 

[Bushman]

I use them. It costs the retailer 2.99% + a small fixed fee, I think 30p. You get 2 options, pay in 30 days or pay in 3 equal instalments.

Does it make a difference? Not a huge amount, to me. I haven't seen sales soar.

Thanks for those figures, They are about double what we pay for normal card transactions. So it's only going to be worth it if it generates additional sales. If our existing customers switch to it we would be worse off. It requires a bit more thought.

 

[japancool]

Thanks for those figures, They are about double what we pay for normal card transactions. So it's only going to be worth it if it generates additional sales. If our existing customers switch to it we would be worse off. It requires a bit more thought.

I think much of it depends on your audience. BNPL tends to be used by younger customers, so if that fits your customer profile, you'll probably see the benefits. Mine vary over the whole age range, though I can't tell you what age the customers who do use it are.

 

[Bushman]

I think much of it depends on your audience. BNPL tends to be used by younger customers, so if that fits your customer profile, you'll probably see the benefits. Mine vary over the whole age range, though I can't tell you what age the customers who do use it are.

We also have a wide age range of customers, also about 60% business customers

 

[JDW]

Can't comment on their service but one of my son's clients the other week was telling him since adding Klarna to their website sales had soared over the weekend 80% of the sales had been through Klarna for products costing around £20.00. Apparently I hear one of the Pizza companies have added this to their payments options as well ..... Pizza on credit a sign of the times we live in

Be interested to hear whether they also ended up selling more, or people just opted for Klarna payments.

Coming from Klarna themselves:
"Retailers typically see a 68% increase in average order value with Klarna Installments"
"44% of users would have abandoned their purchase if Pay later wasn’t available."

Those are interesting numbers even if you take them with a grain of salt. They only do not mention anything about returns... Uncontrolled spending undoubtedly also results in more returns, unless you are selling pizzas. Guessing that cost remains for the shop owner

 

[japancool]

Be interested to hear whether they also ended up selling more, or people just opted for Klarna payments.

Coming from Klarna themselves:
"Retailers typically see a 68% increase in average order value with Klarna Installments"
"44% of users would have abandoned their purchase if Pay later wasn’t available."

Those are interesting numbers even if you take them with a grain of salt. They only do not mention anything about returns... Uncontrolled spending undoubtedly also results in more returns, unless you are selling pizzas. Guessing that cost remains for the shop owner

I certainly didn't see that increase. In fact, I didn't see an increase at all. In fact, most of my Klarna orders are for approximately the average order value - my larger orders are almost all paid by credit/debit card.

At a rough guess, fewer than 10% of my orders are taken through Klarna. My demographic covers the whole age range, so I wouldn't say it's down to my customer profile.

 

[HouseReno]

I use klarna, its great if your unsure if things are going to fit so you can send back and not have to wait for refund if you use the pay in 30 days. Although they have now changed it so it can affect your credit score so be careful!

 

[japancool]

I use klarna, its great if your unsure if things are going to fit so you can send back and not have to wait for refund if you use the pay in 30 days. Although they have now changed it so it can affect your credit score so be careful!

That's from a buyer's perspective. The OP is really looking for information from the seller's perspective.

 

[Leew2143]

Do they charge a monthly fee too?
As we do get asked about financing options, but to date do not offer this service.

 

[japancool]

No.

 

[mtools]

I certainly didn't see that increase. In fact, I didn't see an increase at all. In fact, most of my Klarna orders are for approximately the average order value - my larger orders are almost all paid by credit/debit card.

At a rough guess, fewer than 10% of my orders are taken through Klarna. My demographic covers the whole age range, so I wouldn't say it's down to my customer profile.

This is basically my story too. We make custom weightlifting belts, they sell for £120-£300 abour 50% to USA, 30% to uk and the rest to the rest of the world. We’ve not seen an uptake in orders since adding Klarna and AOV is the same. I’ll probably drop it after Christmas because it just eats into your margins and they take a week to pay disbursements

 

[fantheflames]

Klarna is a popular payment tool for customers, especially the young crowd, and retail, but this totally depends on the type of customers you have.

Not everyone wants to spread payments, which is typically older generation as this is generally quite a new concept.

There's ClearPay, Ideal4Finance and PayPal that I've set up for clients.

You could ask your current customers if they would be interested in other payment options.

This allows you to get feedback from your customers and you'll be surprised how many people will want to give you feedback if you have an incentive on offer.

Good luck!

 

[heliboy71]

I would not recommend Klarna, i just had an issue buying electrical goods through Hughes electrical in UK, i was diverted to Klarna who set up a direct debit then took the full payment for my goods, the money was NOT passed to the seller, and when i eventually found a contact number for Klarna the person was in the Philippines, had no authority and apologised for taking the money but it would be back within 7 business days....so money has been taken and NOT used for the purchase and then withheld by Klarna....more insulting is i was not allowed to speak to anyone senior as all is controlled by a system. In most countries that is called Theft.

 

[japancool]

I would not recommend Klarna, i just had an issue buying electrical goods through Hughes electrical in UK, i was diverted to Klarna who set up a direct debit then took the full payment for my goods, the money was NOT passed to the seller, and when i eventually found a contact number for Klarna the person was in the Philippines, had no authority and apologised for taking the money but it would be back within 7 business days....so money has been taken and NOT used for the purchase and then withheld by Klarna....more insulting is i was not allowed to speak to anyone senior as all is controlled by a system. In most countries that is called Theft.

The retailer does not get the money until they capture the order, and not until about 2 weeks after that. It is not being withheld.