- Etsy adds purchase by invoice option for its customers
- Purchase by invoice is one of the most popular payment methods and will open up new target groups
- Optimising the checkout process will reduce the number of customers who cancel their purchase and also increase conversion rates for merchants
June 20, 2018 – Etsy, the marketplace for unique and creative goods, has integrated Klarna, one of Europe’s leading payment providers, into the central checkout process for its German-language website and app. Buyers and sellers in Germany will benefit from an additional payment option on Etsy from June 2018 onwards.
The strategic partnership with the online payment provider enables Etsy to offer its customers the option to pay later using purchase by invoice. This expands its existing range of payment options like credit card (VISA, Mastercard, American Express), PayPal and the instant bank transfer service Sofortüberweisung (which also belongs to Klarna). This enables customers to enjoy a more comfortable and flexible shopping experience. Shoppers can also use Klarna to pay for goods by bank transfer or direct debit. This means the range of payment options will effectively be increased by two additional popular payment methods. The partnership is currently being rolled out across the German market.
Purchase by invoice: Advantages for buyers and sellers
Klarna will be added for merchants automatically via Etsy Payments with no additional costs, restrictions or effort. Purchase by invoice gives sellers the opportunity to attract new target groups. “Purchase by invoice is still the most popular payment method in Germany,” says Arne Erichsen, Country Manager for Etsy in Germany, Austria and Switzerland. “Buyers view this payment method as straightforward and very secure. Our partnership with Klarna enables us to offer potential buyers this payment method on Etsy.”
The new integrated payment method is also expected to reduce the number of customers who decide to cancel their purchase during the checkout process. Complicated registration processes and lack of available payment methods are still among the main reasons why shoppers decide not to complete their purchase. “The integration will support our merchants in optimising all phases of the ordering process – right through to successful purchase. This will also increase conversion rates,” says Arne Erichsen.
Supporting small and medium-sized merchants
The partnership enables Klarna to further expand its growing expertise in online marketplaces that are growing very quickly. “Etsy is currently one of the most exciting platforms in this area. We’re happy that our payment methods and services are now part of the Etsy economy, giving creative entrepreneurs the chance to expand,” explains Robert Bueninck, Managing Director of Klarna in Germany, Austria and Switzerland. “We want to enable more and more small and medium-sized merchants to operate their businesses successfully in the future. The risk of non-payment is often a barrier to integrating payment methods like purchase by invoice. With Klarna, they’re able to offer a full range of relevant payment methods without facing this risk.”
Etsy, Inc. is the global marketplace for unique and creative goods. Our mission is to keep commerce human, and we’re committed to using the power of business to strengthen communities and empower people. We connect millions of buyers and sellers from nearly every country in the world. Buyers come to Etsy to be inspired and delighted by items that are crafted and curated by creative entrepreneurs. For sellers, we offer a range of tools and services that address key business needs. Etsy was founded in 2005 and is headquartered in Brooklyn, New York.
About Klarna Group
Klarna (www.klarna.com) is one of Europe’s leading payment providers and a licensed bank, which wants to revolutionise the payment experience for shoppers and merchants alike. Founded in Stockholm, Sweden, in 2005, Klarna gives online consumers the option to “Pay now”, “Pay later” or “Slice it” (pay over time) ‒ offering a simple and safe checkout experience in line with their claim “Smoooth Payments”. In 2014 Klarna joined forces with Sofort and formed the Klarna Group. Since 2017 the direct competitor BillPay is also part of the group. The company now works with 89,000 merchants in Europe and North America. These include numerous famous brands and shops as asos, Babywalz, Deutsche Bahn, Flaconi, Mediamarkt and Spotify. Klarna has 2,000 employees and is active in 14 countries.