In this episode, we dive into the booming world of Buy Now, Pay Later (BNPL) with Rob Beattie, Partner Manager at Klarna UK. Discover how BNPL is reshaping ecommerce, boosting acquisition, conversion, retention, and average order values for retailers worldwide. Rob offers insights on the rapid growth of Klarna, its impact on consumer behavior, and the importance of trust and responsible lending in this space.

Key Topics Discussed:

• Introduction to Klarna
  Founded in 2005 in Sweden, Klarna aims to make online shopping easier and safer. Today, Klarna serves over 90 million shoppers worldwide through 250,000+ retailers across 17 markets.
  
  
• Impact of Buy Now, Pay Later on Ecommerce
  BNPL has seen tremendous growth, particularly in the UK over the past 2-3 years, driven by consumer demand for more flexible, interest-free payment options compared to credit cards.
  BNPL benefits the entire sales funnel - acquisition, conversion, retention, and loyalty with conversion uplifts commonly over 10%, and average order values increasing by more than 40% with Klarna Pay in 3 installments.
  
  
• Customer Demographics & Trust Building
  Surprisingly, the fastest growing BNPL user segments are aged 45-54 and 55+. Klarna builds trust through regulatory compliance, strict credit checks, buyer protection, and clear communication.
  Klarna also protects retailers by taking on fraud and default risks.
  
  
• Retailer Benefits and Case Study: Cox & Cox
  Cox & Cox saw 50% of Klarna checkout users as new customers shortly after implementation, promoting Klarna across advertising and direct mail to maximize impact.
  
  
• Advice for Retailers Considering BNPL
  Factors to consider include the preferred payment methods in your target markets, the ability to integrate easily with platforms like Shopify, Magento, BigCommerce, and PSPs like Checkout.com, and how BNPL can expand your customer base while improving conversion rates and customer experience.
  
  
• Morality and Responsible Lending
  Klarna actively works to ensure responsible lending, transparency, and consumer protection, differentiating itself from traditional credit card debt cycles.
  
  
• Future Outlook for Klarna
  International expansion, new market launches, and product innovations including in-store solutions like Hero, influencer marketing platform Apparel, and mobile wallet Stocard.

This episode was recorded in December 2021.

Useful Links: 

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• Klarna official website: www.klarna.com
• Klarna on LinkedIn: https://www.linkedin.com/company/klarna/

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