An ePublication from Ecommerce Partners

Payment Solution Comparison: Afterpay and Klarna

By | November 19, 2019 9:28 am

Klarna is a leading and globally recognized player in the consumer financing space. It has achieved wide name recognition through ongoing marketing efforts since it was founded in 2005. Unlike most alternative financing providers, it is a regulated banking company headquartered in Sweden with an international headquarters in Columbus, Ohio (USA) and lends directly to consumers. It operates in 14 countries, with differing product options because of local regulations. Its offerings typically target order values under $1,000, with approval rates of approximately 50%. While options over $1,000 are available in some markets, approval rates decline to 37%. Interest rates are 18.9% in EMEA and the U.K., and 19.99% in the U.S.

Afterpay concentrates on the millennial shopper segment and is typically used for lower order values than other installment providers. It can be used in Australia, Belgium, Netherlands, New Zealand, and the U.K. After the shopper applies and is approved for credit, a purchase is broken into four equal installments payable every two weeks. Instead of interest, Afterpay charges an $8.00 initial fee and an $8.00 fee for each payment.

Klarna notably outperforms Afterpay in its impact on conversions and Average Order Value. Klarna also offers products that go beyond Afterpay’s four biweekly installments option, including pay later in full options after 30 days, and financing purchases with traditional monthly payments like a retailer-issued credit card.

 

Posted in:

Comments are closed here.

About Us


About Ecommerce Partners:

Founded in 1998, ECommerce Partners is a full-service, ecommerce and interactive agency headquartered in New York City. Best known for our unique process methodology, we combine Internet expertise, creative talent, and business know-how to help clients across a variety of industries achieve rapid, measurable online marketing results.

True to our motto, "We build businesses, not just websites," we provide large and mid-sized companies with a full range of Internet marketing, website design and ecommerce solutions geared to maximize online revenues.

 

 

Our Offices

New York USA
Ecommerce Partners
59 Franklin Street
New York, NY
10013
Phone 212 334-3390
Fax 503 218-5585
Florida USA
Ecommerce Partners
6700 Pines Blvd.
Pembroke Pines, FL
33024
Phone 866 431-6669
Fax 503 218-5585
California USA
Ecommerce Partners
123 California Ave
Santa Monica, CA
90403
Phone 866 431-6669
Germany Germany
Ecommerce Partners
Passauer St4
Berlin
10789
Phone 49-30-2361-9794
Australia Australia
Ecommerce Partners
31 Mary Street
St. Kilda West
Victoria 3182
Phone 61-3-9505-9988