Shopify is a Canadian e-commerce platform enabling individual and corporate customers to set up online stores. Klarna’s instalments-based service has been added to their range of payment solutions for more flexibility.
These companies already teamed up in 2016 and recently strengthened this partnership through their Shopify Plus Technology Partner Program. They now focus on high-volume and growth merchants especially inGermany, in the UK and the US.
In order to pay with Klarna, the customer chooses one of the proposed payment methods (Pay now, Pay later or Slice it in 3 / in 4)
The merchant must have signed up a Klarna account beforehand so he can be provided access to the merchant’s portal
Klarna is in charge of debiting the amount from the customer’s account and sending it to the merchant
“Shopify Plus” provides merchants with additional assistance and access to Klarna’s APIs so they can further customise their processes, while mitigating fraud risks.
For Shopify: building trust and value-added services. Shopify may benefit from the Swedish FinTech’s visibility to improve their quality of service, help boost their merchants' revenue in the long run, and help them secure their customers’ loyalty.
Some merchants witnessed significant sales growthwhen relying on Klarna’s payment solutions. The German footwear company Giesswein, for instance, reports a volume growth of 5% with Pay later, and the American motorised skateboard producer Onewheel claims +15% uplift in sales with Slice it.
For Klarna: EU-wide reach and access to Shopify customer bases. For Klarna, this announcement stresses a far-ranging partnership, aiming for several markets in Europe as well as for the US: another opportunity to target more e-merchants, helping them implement instalments-based payment solutions on their platforms.
This initiative also contributes to previous endeavours by Klarna and Shopify: they recently integrated Klarna with Shopify Payments in Germany, and Klarna’s payment gateway has been made available to Shopify merchants on 9 markets (including the US, the UK, the Netherlands, and the Nordics).
Klarna further consolidates their position as a European payment service provider. They also open the way for other players interested in teaming up with them and featuring spread payments/pay later options for merchants: Jaja with ASDA in the UK, for instance.