Klarna is an innovative payments company based in Stockholm, Sweden, and we don’t use the term “innovative” lightly. Started in 2005 by three students, Klarna is very much a payments firm for the startup age, providing services for both merchants and shoppers.
As of Dec 2019 they claim to have had 6 million customers across 4,000 websites in the UK and adding over 200,000 customers month which goes someway to explain their valuation of £4.3 billion in August 2019.
Online shoppers using its payment processor can spread payment up to £5,000 over 1 -36 months and only pay interest if they miss they don’t pay it back within the agreed timeframe (some rates can get as high as 18.9% if they delay payment).
Aside from its payment gateway, which allows you to process card payments on your website, the company offers shoppers a range of payment and financing options designed to help you sell more products. Topping the list of its payment innovations is its “buy now pay later” feature which allows customers to pay for your products after they’ve received them.
Here’s the exciting part, though: Klarna pays you for the product, as soon as your customer completes the purchase, so you get paid right away. Then Klarna takes full responsibility for collecting the payment and dealing with any refunds, which means you never miss out.
Sounds fantastic – right? The trouble we have heard so many negative reviews from online businesses who have tried it out. If anyone has used Klarna and is satisfied or even happy with the service please fill in a user review as at the moment the general consensus is to stay clear.