PPRO Group, the cross-border ePayment company, and the European bank Klarna announced Wednesday (Nov. 15) a partnership that will enable payment service providers (PSPs) to offer credit-based payments to European merchants through PPRO’s payment hub.
“We’re really pleased to add Klarna to our growing portfolio of 140 payment methods we already have on offer,” Jack Ehlers, director of payment partnerships at PPRO Group, said in a press release. “Its flexible credit and financing option brings enormous benefit to buyers who want more control over payments and to merchants who want to increase sales and confidence in getting paid.”
According to the press release, the partnership will enable eCommerce companies to improve conversion rates by offering customers a fast, easy checkout. The new credit-based payments feature will target PPRO’s PSP customers, giving them access to Klarna’s customer base of 70,000 merchants.
With the feature, the payment is settled with the retailer upfront after assessing the credit risk, with Klarna carrying all of the risks. At the same time, PPRO’s PSP customers will be able to meet retailer and customer demand for popular credit payment types.
When purchasing items, consumers can manage the terms of the payment and even spread the cost out over several months. Rather than entering credit or debit card details at checkout, they only have to provide their email address and postal code, which makes the checkout process much quicker and reduces shopping cart abandonment.
“We are excited to be able to launch the latest in our credit and invoice-based payment methods with a global leader like PPRO, enabling eCommerce businesses to compete more effectively in key European markets,” said Michael Rouse, chief international commercial officer of Klarna. “We offer more flexibility in how to manage payments for products and services. It’s a win/win scenario.”