Klarna sees growing demand for pay later service
Written by Hannah McGrath
The demand for flexible payment options is driving rapid growth of Klarna’s Pay Later service amongst UK retailers, with the payments firm now reporting 4.4 million users of its service.
According to Klarna’s annual financial statement, the option of flexible consumer finance is seeing uptake from 25,000 new UK shoppers on a week by week basis, with the Pay in 3 instalments concept seeing a 55 per cent increase in average order value (AOV) and a 44 per cent increase in conversion.
On average, a Klarna Pay later user in the UK does 8.6 transactions per year.
The results from Klarna show a 36 per cent rise in sales volume for the firm in 2018 and 31 per cent lift in revenue.
In addition, 130,000 merchants have deployed the Pay now, Pay later and consumer finance option worldwide, including IKEA and H&M.
Luke Griffiths, UK general manager for Klarna, said: “The UK has significantly contributed to Klarna’s global growth with new merchants and heightened consumer usage, which have increased our UK footprint.”