Klarna & installment plans

One of the most common questions merchants ask is how to offer installment or payment plans to their buyers.

Traditionally, the answer has been to use the flexibility of our subscription-based products and limit the number of payments. However, while that still offers amazing benefits to both the merchant and the buyer, we felt there was a better solution.

Enter Klarna!

We are very excited to be able to offer Klarna as a payment method. Klarna is a payment method that can offer one or more of the following payment options:

• Pay now. This is an instant payment but through the buyer's Klarna account (similar to how a buyer can use PayPal to pay for their purchase).
• Buy now, pay later. This is where the buyer receives their product now but pays at a later date (e.g. in 30 days).
• Pay in X. This is an interest-free payment plan where the buyer can opt to pay for the item in 3 or 4 installments.
• Financing. In some countries, financing can also be an option for the buyer to purchase your product.

The purchase options Klarna displays to the buyer will depend on both your location, as the merchant, and the buyer’s location.

For example, if you and your buyer are based in the US, then Klarna can offer an installment plan with 4 interest-free payments.

Or another example, if you are both based in the UK, then they may also be offered a ‘Buy now, pay later’ option where the buyer receives their download links straight away but pays at a later date.

High priced products

An installment plan is perfect for higher-priced products such as online courses or coaching services which can easily become hundreds of dollars.

Being able to offer a simple and robust installment plan opens up your products to a whole new market.

Payments

Not only does Klarna offer payment options that increase your market reach, but they also handle every aspect of the buyer’s payment.

The result is you don’t need to worry about collecting the buyer’s payments or ensuring they complete their installment plan. Klarna does that for you.

You, as the merchant, receive payment in full immediately on completion of the checkout. Klarna then deals directly with the buyer to collect payments on the agreed schedule.

More sales and less worry! We think that’s a win for any seller.

Support

As you’ve come to expect, our help articles take you step-by-step through any process, and integrating Klarna through your Stripe account is no different:

Adding Klarna via Stripe

If you have any questions or feedback, or just want to say Happy Holidays, we’d love to hear from you!