Klarna is the ‘buy now, pay later’ payment method that we as a nation of shopaholics adore, with the majority of the UK’s retailers incorporating it into their eCommerce platforms.
However, with a Treasury crackdown expected on the UK market, it is now becoming clearer that the beloved finance company is encouraging people into debt, as it encourages online users to buy what they simply cannot afford.
In response to this, Sebastian Siemiatkowsi, Co-Founder & CEO of Klarna has opted to introduce a revised “pay now” option, allowing for users to pay for items upfront without the risk of being indebted later.
But as eCommerce experts, we’re curious if this will be utilised and ask, will it really change people’s own buy-more-than-you-can-afford shopping habits?
Unsurprisingly, the simple answer is that none of us really know until we see the results. Professionals in the eCommerce world should rely on data, not assumptions, after all.
And although the ‘pay now’ feature is already activated in several key countries where Klarna currently operates, we need global statistics before we can pass judgement.
Despite the uncertainty around this, they are also making further changes to ensure customers have a clear understanding and control of how they consume online through Klarna, in particular those of a younger generation – who make up a large (and fast-growing) percentage of their audience.
This includes regular checks of how much users can afford to borrow/spend, as well as using the correct terminology during checkout to ensure that customers understand that they are taking on a debt and that they must be able to follow through with the three monthly instalments.
If you’re a retail business owner and are interested in learning more about the Klarna finance option, or incorporating it into your eCommerce platform, be sure to reach out to the Myk Baxter Marketing team today.
Located in the heart of Darlington, County Durham, Myk and his team of industry experts will be able to guide you through the implementation process, and offer you the ongoing support and website maintenance you need to ensure a faultless user experience.
Reach out to them today to book your consultation!
Telephone number: 01325 939 838
Address: 2 Peel Court, St Cuthberts Way, Darlington, County Durham, DL1 1GB