STOCKHOLM | Klarna, the online payment solution using invoice payments, has launched Klarna Checkout for the German ecommerce market. Klarna Checkout enables merchants to separate order confirmation and actual payment. Klarna Checkout is assumed to drive conversion rates by preventing consumers to abandon their shopping carts due to payment issues.
Merchants offering Klarna Checkout as payment option allow their consumers to first confirm the order and, secondly, pay by using their preferred payment method. Consumers can pay by using credit card, debit card and Klarna Invoice. According to Klarna's Blog, the Klarna Checkout for the German market will support popular online payment methods in Germany like SOFORT and Lastschrift.
Separating the buying from the actual paying simplifies the purchase process and is supposed to increase conversion. It eliminates the risk of a customer abandoning the purchase while filling in, for example, all their credit card details – because the purchase is completed before the payment method is chosen. If a specific method is not selected, the default choice is Klarna Invoice.
The merchant is guaranteed to receive payment. In order for a customer to complete a purchase by simply using an e-mail address and postal code, Klarna performs a swift and efficient background check of the consumer information. By doing so Klarna can assume all the risk for fraud and credit loss, for both the customer and the merchant.
Klarna Checkout Optimised for Mobile
Klarna has built a Klarna Checkout especially for the German online market and one that is optimised for mobile devices. Shopping on a mobile device has always been more complicated than on a desktop. While today almost 20% of all e-commerce traffic comes from shoppers using mobile, conversion is still 60% lower than those using desktops. Klarna checkout, already available in Norway, Finland and Sweden, delivers a friction-free experience for consumers, especially for those shopping on smartphone and tablet devices.
Klarna Checkout Merchants
One of the first Klarna Checkout merchants in Germany are the online marketplace Hitmeister.de, the fashion retailer Stylepit.de, and the online pharmacy Apotheke.de. Klarna Checkout will become available in other European ecommerce markets later in 2014.
Sourced from Klarna Checkout Blog, April 11th, 2014