Next in our APMs series is Klarna, which holds a sizeable market share in Northern Europe. So how could this popular, diverse Alternative Payment Method (APM) enable you to enhance your retail revenue efforts? Keep reading to find out more about the opportunities for you as a merchant. We’ll also cover how popular it is with customers, in addition to market penetration and more.
How does Klarna work?
With Klarna, customers can either pay for items in full straight away or complete the payment at a later date. The Klarna Pay later capability enables consumers to pay the remaining balance up to 30 days after shipping. Plus, the consumer will only pay for the items that they choose to keep.
Which markets does Klarna operate in?
Klarna currently operates in 14 markets. At the moment, emerchantpay has integrated half of these: Sweden, Norway, Denmark, Finland, the Netherlands, Austria and the United Kingdom.
The service is available for merchants in multiple eCommerce categories. These include travel, sports, fashion, beauty and electronics.
How big is Klarna’s market penetration?
Since being founded in 2005, Klarna has become renowned within the Nordic countries in particular. In Northern Europe, as a whole, it currently holds 10% of the region’s eCommerce market share. Across all of its territories, 100,000 merchants offer Klarna as a payment option to their consumers.
How popular is Klarna with online shoppers?
Klarna is also prominent and trusted among online shoppers across its served markets.
Each day, 800,000 transactions are processed using this APM. Moreover, the company provides payment solutions for 60 million customers.
What are the opportunities for merchants?
On top of allowing online shoppers to pay later if they wish, Klarna also provides a seamless one-click process for those who would prefer to pay straight away. Because this feature is available on mobile, as well as desktop, it poses tantalising revenue opportunities for Sweden-facing merchants in particular. 64% of eCommerce traffic in the Scandinavian nation comes from mobile, according to eHandel. Therefore, brands that are either in or looking to expand into Sweden would not only need a service with such functionalities but would also be offering one which is known and trusted by consumers.
The APM has already extended beyond Europe and also offers its services in North America. The intention to continue broadening its influence was reported in the Financial Times earlier this year, meaning that there is the potential future opportunity for brands outside of Klarna’s current reach to diversify their payment offerings with this service. This, coupled with the possibility of emerchantpay integrating the other half of its existing markets, makes the service not just a tempting prospect for Northern European merchants, but also those elsewhere who are looking ahead. Read our next blog in the APM series on Safety Pay, in LATAM.
At emerchantpay, we offer a range of Alternative Payment Methods like Neosurf and Trustly and other payment solutions for merchants in both Northern Europe and elsewhere. Want to discover more? Contact us.