Klarna, a payment provider in Europe, announced Tuesday (Feb. 21) that it inked a new partnership with Radial, the omnichannel commerce technology company.
In a press release, the companies said that under the partnership, Klarna will integrate Radial’s payment platform so that clients and prospects can offer financing options at checkout, which will give customers more choice. Klarna said it could give retailers 58 percent higher order value as well. According to Klarna, the financing of purchases has historically been resigned for physical retailers, while online it can become a lengthy process. With Klarna, it only requires a few fields of information, so customers can know instantly if they can finance their purchase.
“Radial’s partnership with Klarna enables our clients and prospects to offer their customers payment flexibility with convenient, low-APR financing options,” said Stefan Weitz, chief product and strategy officer at Radial, in the press release. “Giving customers a straightforward financing option is not only convenient for them, but also benefits our retailers’ order value. No smoke and mirrors and hidden costs — it’s just simple financing and approval to give customers what they want, when they want it. It’s a fantastic way to reduce friction in the purchase process to convert more shoppers to buyers.”
The companies said by offering online consumer financing with a more flexible payment option over other methods, retailers can counteract the abandoned cart effect, and this will thus boost customer retention, loyalty and sales.
“We have built a solution optimized for the online shopping experience with a particular focus on mobile commerce,” commented Brian Billingsley, CEO of Klarna North America, in the same press release. “What we’ve learned at Klarna from processing hundreds of millions of transactions is that when the user experience for consumer finance is smooth and easy to understand, it drives loyalty and increases sales.”