Klarna is the leader in payment instalment technology. It helps ecommerce platforms like marketplaces grow sales volumes by offering buyers flexible payment terms.

Who uses this technology?

General usage

38% of shoppers use buy-now-pay-later payment terms for purchases that would otherwise not fit their budget. According to CB Insights, installment plan transactions are forecast to grow 10 – 15x  to $1T by 2025.

Klarna gives online consumers a number of options to delay payments for purchases from subscribed retailers. They can choose between splitting purchases into four interest-free installments spread over two months, paying the full amount interest-free after 30 days, or using 6 – 36 month credit finance.

Klarna’s flexible payment options have a number of advantages for merchants and marketplace platforms:

  • As a marketing tool, it helps to attract and retain buyers
  • It reduces cart abandonment rates and increases conversion rates (30% on average according to Klarna)
  • It boosts average order value and shopping frequency
  • Klarna assumes the financial risk by paying merchants up front
  • Integrates seamlessly with existing payment and shipping flows


Klarna is the leading buy-now-pay-later technology among the world’s top million sites:

Source: Builtwith

Marketplace benefits

Curated beauty product marketplace, Sephora, wanted to make its products more accessible for younger audiences. After implementing Klarna’s flexible payment plans the AOV of online purchases rose by 35%.

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