Klarna: A Guide for UK Businesses Considering Card Payment Solutions
As a UK business looking to offer seamless and flexible payment options to your customers, you may have heard of Klarna—a popular buy now, pay later (BNPL) service that’s gaining traction among online and in-store retailers.
What is Klarna?
Klarna is a Swedish fintech company that provides payment solutions, allowing customers to:
- Pay in 3 interest-free instalments (split purchases into three payments over 60 days).
- Pay in 30 days (defer payment for a month with no interest).
- Finance larger purchases (longer-term payment plans with interest).
Klarna integrates with major e-commerce platforms (Shopify, WooCommerce, Magento) and offers in-store payment options via its app or card readers.
Why Should UK Businesses Consider Klarna?
- Increased Conversion Rates – Offering flexible payments can reduce cart abandonment, as customers prefer manageable payment options.
- Attracts Younger Shoppers – Millennials and Gen Z are more likely to choose BNPL services over credit cards.
- No Risk for Merchants – Klarna pays you upfront (minus fees) and assumes the credit risk.
- Seamless Checkout Experience – Klarna’s smooth integration enhances customer experience.
Klarna Fees for UK Businesses
Klarna charges a transaction fee (typically 3-6% per sale, depending on the plan and risk assessment). There may also be fixed fees for certain payment methods.
How to Accept Klarna Payments
- Online: Integrate Klarna via your payment gateway (Stripe, Adyen) or e-commerce platform.
- In-Store: Use Klarna’s card reader or allow customers to scan a QR code to pay later.
Alternatives to Klarna
If Klarna’s model doesn’t suit your business, consider:
- Clearpay (owned by Block) – Similar BNPL service.
- PayPal Pay in 3 – Another instalment option.
- Traditional Merchant Services – Card machines with standard payment processing.
Final Thoughts
Klarna can be a valuable addition to your payment options, particularly if you sell higher-ticket items or target younger demographics. However, weigh the fees, customer demand, and integration ease before committing.
Would you like help comparing Klarna with other payment providers? Get in touch for expert advice tailored to your business needs.
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