How to Use Klarna to Grow Your Online Store

Making checkout as easy as possible is an important part of growing your online business. The more seamless it is for someone to check out—no surprise added fees or pauses to find a card number, for example—the more likely they are to finish their purchase. 

Squarespace is designed to make checkout straightforward for your customers, with a seamless checkout experience for online stores and support for a wide range of payment options. One of the most popular payment methods for both small businesses and shoppers is Klarna. 

Klarna is a buy now, pay later tool that gives shoppers more flexibility and can help you make more sales.

What is Klarna?

Klarna is a popular payment option that gives shoppers more flexibility by allowing them to buy something but choose how and when they pay off the full cost. It’s great for shoppers on a budget and anyone purchasing high-value items. The business gets the full payment immediately while giving customers more control over their budgeting.

It’s a win-win. Customers might choose to buy something or buy more items when they can use buy now, pay later, and your store conversion rate can improve by as much as 30%. Klarna is available to Squarespace users with Squarespace Payments. 

Learn more about alternative payment methods 

How does Klarna work?

When a shopper checks out with Klarna, they can choose whether they want to pay in installments, defer the payment for up to 30 days, or finance their order over a longer period of time.

• Klarna Pay in 4: Customers can split their purchase into four interest-free payments billed every two weeks. There’s no interest or extra fees—the price of the product is simply divided into four equal installments.

• Klarna Pay later: Customers pay for their purchases within 30 days of the transaction.

• Klarna pay now: Customers pay for the purchase immediately using a linked card, bank debit, or bank transfer.

• Klarna financing: Klarna also offers the option to spread the cost over a period of time, which can extend up to 36 months, depending on the purchase size and customer preference.

Klarna has a lot to offer businesses too. the added flexibility for customers means increased conversion rates and higher average order values. When a shopper checks out with Klarna, you get the full payment right away, and Klarna handles collecting the purchase amount from the customer, including any future installment payments if necessary.

Note: Klarna services and payment options may differ based on where your business is located.

How to increase sales by offering Klarna in your store

Klarna gives shoppers the benefit of added flexibility and convenience. That benefit translates into growth for your store in a few ways.

1. Higher order values: According to Klarna, stores that offer Klarna tend to see a 41% higher average order value as shoppers are comfortable spending more. 

2. Increased conversions: Flexible payments make it easier for potential customers to fit a purchase into their budgets, which makes them more likely to complete their order.

3. More customers: According to Klarna, more than 40% of Klarna sales come from first-time customers.

Buy now, pay later options can also help increase customer loyalty and reduce returns. Over time, that’ll help you grow your business as you keep existing customers and attract new ones.

How to accept Klarna on Squarespace

Klarna is available with Squarespace Payments, and turning it on is simple. 

1. In your account, go to Payments.

2. Select Manage Settings 

3. Turn on Squarespace Payments to enable Klarna.

Once you enable Klarna, your customers will automatically see it as a payment option when they get to checkout. You can let shoppers know you offer Klarna by highlighting it on your website. Consider adding a mention of Klarna to your homepage or using promotional banners to promote it across your store. You can also let followers and customers know by sending an email update and posting on your store’s social media accounts.

Note: Squarespace Payments is currently available in the United States.