Payment processing firm Worldpay is partnering with invoice and credit-based payments company Klarna, according to a Klarna press release published Wednesday (Dec. 6).
Under the agreement, Worldpay’s customers can use Klarna’s offerings to get paid by eInvoice or payment installments for trade done in Austria, Finland, Germany, the Netherlands, Norway, Sweden and the United Kingdom.
“We are excited to be able to launch the latest in our credit and invoice-based payment methods with … Worldpay, enabling eCommerce businesses to compete more effectively in key European markets,” said Michael Rouse, chief commercial officer at Klarna. “Klarna assumes responsibility for managing credit and fraud risks, allowing companies to quickly receive payment for orders and allowing consumers to pay only if they’re happy with their purchase. We offer more flexibility in how to manage payments for products and services.”
Instead of using a credit or debit card, consumers have the option to input an email address or zip code when they’re ready to purchase. The Worldpay-Klarna solution allows them greater options at the end of the buying experience, including 14-day payment by invoice or installments that can be fixed, flexible or spread out over several months.
“Retail is a competitive sector, so we’re seeing increased demand from customers wishing to create more reasons to shop with them over their competitors,” said Dave Glaser, chief product officer of global eCommerce at Worldpay. “For some, payment by credit card is seen as risky and old-fashioned, so being able to adapt to new and local payment preferences is a way to rectify this. We believe that this solution will empower companies to see a real increase in sales.”
Customers are increasingly turning to eCommerce options when shopping for goods and services, and the joint offering aims to provide an improved checkout process for customers. The absence of inputting credit or debit card information saves consumers time, making the purchase experience quicker and reducing risk of cart abandonment.