Merchant Portal

True transparency.

How responsible consumer lending boosts customer loyalty, increases conversions, and improves sales.

As a merchant, you love your products. 

And you want to sell as many of them as possible. Having a great checkout experience and the best payment options is vital to acquiring new and loyal customers, which keeps your business growing. These options include the possibility to pay later or slice the purchase into easy, installment payments. At Klarna, we take pride in helping you offer the flexibility and customer experiences that grow your business. And we do it better than anyone.

But let’s talk about the elephant in the room: competitors say they can do it all.

Recently, competitors in consumer financing have been boasting about higher customer approval rates. The assertion is that they are more likely to grant credit to consumers who are at a higher risk of defaulting – the so-called “subprime” group. At Klarna, we also offer split payments to shoppers with a less-than-perfect credit score. But, we are careful to select those who we believe are capable of repaying the money, without having to deal with late fees or debt collections.

Why? Well, it’s important to us. Penalty fees, debt collection and even worse – defaulted payments – are all negative side effects of lending. To minimize this kind of personal damage, we assign high priority to making responsible credit decisions.

But this is all a bit high-minded, right? You didn’t get into business to win a peace prize. You came to sell, so you might wonder: why should you prioritize customer experience over approvals?

Compare Slice it to other instant financing solutions.

It’s simple. Approvals don’t impact your bottom line. Orders do.

So, let’s talk about orders, because an approval isn’t one. An order is placed once the customer learns the terms of their loan or line of credit, and confirm that they want the deal.

There’s a clear downside to approving a larger portion of consumers in economically vulnerable groups: higher interest rates. To compensate for losses that come with approving too much subprime credit, credit providers need to increase their revenues – typically in the form of higher APRs.

With Klarna, 90% of approved accounts place an order or convert; comparatively, our competitor’s rate is 65%, meaning fewer customers accept their loan or place an order. This is often the result of risk-based pricing: the customer chooses not to accept the loan upon realizing a higher APR is in place. Often, interest rates are not fully communicated to the consumer until after an application has been submitted and approved.

Klarna provides true transparency and excellent experiences. Which means loyal customers for you.

Klarna’s representative APR is one of the lowest in the industry. It will never be higher than 19.99%, and is often far less. Our APR is clearly stated up front during the application process, leaving the customer with no surprises. Why? We’d be lying if we said it didn’t feel good. But it’s a smart business decision, too.

Klarna believes that fair and transparent terms are key to keeping consumers coming back. That’s why we treat all customers equally, offering consistent APRs that are not dependent on an individual’s creditworthiness. We want the credit application, approval, and post-purchase experience to be excellent for everyone – regardless of what credit group they belong to according to according to traditional scoring models.

And it works! Klarna’s average customer satisfaction (CSAT) score on Slice it is greater than 80%. As a result, our returning customer rate is 25%. This means more business for merchants who offer our services.

So, how are we doing this on a practical level?

Well, the one-click and application-free experience for returning account holders doesn’t hurt. But we’ve got more to brag about.

When an application is submitted, the risk of the transaction is analyzed instantly, with industry-leading accuracy. We look at people, not demographics. Instead of treating customers as part of a group to determine their creditworthiness, we look at a vast number of data points to examine each shopper independently at the moment of purchase.

Our wide portfolio of payment products fits the varying needs of both consumers and merchants, to ensure they get what best suits them. In addition to traditional credit, we offer alternative payment methods including Pay later and Slice it in 4. Slice it in 4 allows shoppers to pay off their purchase in 4 equal installments, automatically collected bi-weekly. No credit agreement, no upfront interest or fees, and no hassle. All of this with an almost 100% acceptance rate.

Why is this important for you as a merchant?

One more time for the people in the back: because it makes you money!

Happy customers are the best customers. Klarna’s transparent, upfront terms create a frictionless customer experience, leading to higher conversion rates, greater loyalty, and more sales for our merchants.

Are you ready to learn about our unique payment options?

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