Klarna and Shopify Further Strengthen Global Partnership

Enabling SME merchants in Germany to effectively compete and grow by automatically enabling Klarna payment methods through Shopify Payments

News provided by

Klarna Bank AB (publ)

Oct 30, 2018, 03:12 ET

STOCKHOLM, Oct. 30, 2018 /PRNewswire/ -- Klarna and Shopify today announced that Klarna's Pay later and Pay now solution, Sofort, are being integrated into Shopify Payments, which will enable German merchants to offer two of the most popular payment methods for e-commerce. Together, Klarna and Shopify will ensure that merchants can provide a superior customer experience and the freedom and flexibility for customers to choose when and how they want to pay.

Shopify Payments seamlessly integrates with merchants' stores and makes it possible to go live with just a few clicks. Klarna's Pay now and Pay later are being integrated as default payment methods, with no additional costs, complications or effort. Pay now, available today, enables customers to pay instantly via bank transfer at checkout. Pay later, available in the coming weeks, offers customers the flexibility to pay for their products up to 30 days later with no interest or fees, allowing customers to try before they buy. Together, Klarna and Shopify are providing SME merchants a competitive advantage, helping them to unlock growth, boost conversion rates and drive customer satisfaction and loyalty through a smoother shopping experience. This integration further strengthens the work Klarna and Shopify has already been doing, with Klarna's payment gateway available in nine markets, including the US, the UK, Germany, the Nordics, the Netherlands and Austria for Shopify merchants.

One of the leading German watch & accessory brands, Paul Valentine, who offers Klarna Pay later as one of their payment methods through Shopify, saw that by offering the popular 'try before you buy' payment service, customer satisfaction as well as revenues have increased. At the same time, Paul Valentine does not have to take any risk as Klarna assumes responsibility for managing credit and fraud risks, allowing merchants to quickly receive payment for the orders, and allowing customers to pay only if they're happy with their purchase.

Paul Franzreb, CEO and co-founder of Paul Valentine, says: "Since we started using Klarna's payment alternatives we've seen an increase of up to 20% in revenue. The wider scope of payment alternatives we now offer, and giving the customers the opportunity to pay after delivery are the main reasons for this uptick. For a merchant our size, we also see that Shopify and Klarna add credibility and trust to our store, and people are more willing to buy from us."

Sebastian Siemiatkowski, CEO and co-founder of Klarna, says: "Klarna's partnership with Shopify is going from strength to strength and we are continuously impressed by Shopify's efforts to innovate and keeping their commerce platform as simple and user friendly as possible. We have a shared vision of helping merchants, especially SMEs, to unlock growth by providing an exceptional customer experience by removing unnecessary friction associated with the checkout process. This will also help merchants to meet customers' increasing demands on a smooth experience and thereby enable them to compete more effectively on key markets and ultimately achieve their full potential. The optimised customer journey will deliver customer satisfaction and loyalty as well as consistently improved conversion rates and increased average order value for the SME merchants powered by Shopify."

Tobi Lütke, CEO of Shopify, says: "Shopify accidentally went global when merchants around the world began using our software. Now, we're strategically going local. We want to make sure that Shopify works perfectly in Germany, and Klarna and its payment alternatives really complete our checkout system."

For more information
Johanna Nyman, Senior Communications Manager
[email protected]
+46 (0) 72-855-83-29

About Klarna

Klarna is one of Europe's leading payments providers and a newly-licensed bank, which wants to revolutionise the payment experience for shoppers and merchants alike. Founded in Stockholm, Sweden, in 2005, we give online consumers the option to pay now, pay later or over time – offering a simple, safe and smoooth checkout experience. Klarna now works with 90,000 merchants. Klarna has 2,000 employees and is active in 14 countries.

About Shopify

Shopify is the leading omni-channel commerce platform. Merchants use Shopify to design, set up, and manage their stores across multiple sales channels, including mobile, web, social media, marketplaces, brick-and-mortar locations, and pop-up shops. The platform also provides merchants with a powerful back-office and a single view of their business, from payments to shipping. The Shopify platform was engineered for reliability and scale, making enterprise-level technology available to businesses of all sizes. Headquartered in Ottawa, Canada, Shopify currently powers over 600,000 businesses in approximately 175 countries and is trusted by brands such as Nestle, Kylie Cosmetics, Allbirds, MVMT, and many more.

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