Klarna is an online payment system that offers businesses a way to accept payments from their customers. Klarna became popular with consumers for its straightforward no-interest fee plans. Even better, the only fees they charge are late fees.
So if your clients are reliable, the platform might be right for your customers. However, there are other options available that may be a better fit for your business.
Many people like having the option to make payments on larger purchases, and having a system that handles this can help your business expand. But Klarna might not be compatible or have the features you’re looking for.
The best alternatives to Klarna offer businesses a way to take advantage of this and provide their customers with an easy way to make payments. So let’s talk about the downfalls of Klarna and its other alternatives.
The Cons of a Business Using Klarna
While Klarna is a popular payment system, there are some potential downsides to using it for your business.
One major downfall is that Klarna can be pretty expensive for many businesses. Klarna charges substantially higher merchant fees than other payment processors.
Finally, it’s important to note that payment options are only available in some countries. This selective location barrier can be a problem for businesses with customers in countries where Klarna is unavailable. If you’re looking for a worldwide payment system, check out some of the alternatives below.
The Best Alternatives for Klarna
1. Paypal Credit
Paypal Credit might be a good option if you’re looking for a more tailored alternative to Klarna. It offers businesses a way to accept customer payments without worrying about late fees or interest charges. This can be helpful for businesses that are just starting and want to avoid additional costs.
Paypal Credit allows businesses to quickly and easily begin accepting customer payments. It can also be helpful for businesses that want to expand into online sales, as millions worldwide use widely accepted payment methods.
Another thing to note is that Paypal Credit uses the same security measures as the standard PayPal checkout, so you can be sure that your payments will be processed securely. This extra layer of security can be helpful for customers concerned about their data’s safety. It’s also an excellent choice for retailers that need to begin taking online payments as soon as possible!
Paypal Credit is a great alternative to Klarna, offering businesses a way to accept payments from their customers without worrying about late fees or interest charges. It’s a widely accepted payment method in many different countries. One of the main benefits of using Paypal Credit is that it doesn’t require any setup or maintenance fees, making it an attractive option for businesses just starting out.
One of the major downsides of using Paypal Credit is that it can be quite expensive for certain businesses. Processing fees with Paypal Credit typically range between 3-5%, which is higher than other payment processors. For example, Stripe charges only 2.9% + a small transaction fee.
Laybuy was founded in New Zealand, but offers a consumer-friendly Buy Now, Pay Later to customers in the UK. Unlike other buy now, pay later services, it lets customers divide payments into six equal parts. They pay the first payment up front and then the remaining five payments over the following five weeks. Best of all, payments are always interest free.
There’s a lot to love about Laybuy from a merchant’s point of view. While consumers spread payments over six weeks, you receive your payment immediately. The platform is also omni-channel and should integrate seamlessly into your existing setup. That includes platforms like Shopify, WooCommerce, Magento, and Vend.
If that weren’t enough, Laybuy also removes fraud risk from merchants and provides you with a dashboard filled with the kind of data you need to grow your business.
Clearpay is an Australian payment system that offers businesses a way to take payments from their customers. It is simple to use and does not have any hidden fees. It currently operates in Australia, the UK, the United States, and New Zealand. Founded in 2014, it already has millions of global customers, and thousands of merchant partners use the platform.
There are many pros to using Clearpay for a business. First, it is simple to use and has no surprise charges, making it a more affordable payment system for businesses just opening up shop.
Additionally, it can help increase sales as customers can easily pay for their purchases. Clearpay also has a very user-friendly website that makes it easy to find the information you need.
There are also some cons to using Clearpay for a business. First, a flat rate commission fee of 4-6% can add up over time and be costly for companies. The service is also only available in a handful of companies (although one of those is the UK). Finally, there have been complaints about Clearpay’ lack of customer service, which can be frustrating if you need help with your account.
Zilch is a relatively new payment system that offers businesses a convenient and secure way to accept customer payments. The service is provided by Zilch Technologies, a company based in the UK. Unlike many other alternatives, Zilch does not charge any upfront fees or hidden costs. Instead, it offers an incredibly low-cost per transaction rate of just 0.2%.
This makes it a great option for small businesses that are just starting out and want to minimize their costs. Additionally, the service is incredibly secure, as all payments made with Zilch are encrypted and processed in a PCI-compliant environment.
One downside of Zilch is that it only works with specific banks and credit cards, so businesses may have to work around this limitation. Additionally, the service is still relatively new, which means that there may be some bugs or issues that need ironing out before they can be used consistently.
Is Buy Now Pay Later A Good Idea For Businesses
Buy now pay later systems can be a great idea for businesses that need to facilitate payments from their customers, as it offers a convenient and secure way of doing so. The lack of upfront fees and low cost per transaction rate makes it easier for businesses to keep track of their finances and helps them to avoid breaking the bank.
Furthermore, these payment systems can help to increase sales, as customers are encouraged to make larger purchases due to the convenience and flexibility of the payment plan.
However, businesses should still weigh up the pros and cons of using buy now, pay later systems before jumping in. Businesses need to consider their customer base and whether buy now pay later suits them.
Why Your Company Should Have at Least One Payment Option
Whether it be Klarna or one of the amazing alternatives, your business would benefit from having one buy now pay later option. Conveniently allowing customers to spread out their payments can greatly increase customer satisfaction and sales. By offering the convenience of buy now pay later, your business could increase loyalty as it appears more trustworthy to customers
Having at least one payment option available also helps to make sure that you don’t miss out on potential customers who may be put off by having to pay the full amount up front. Furthermore, buy now, pay later options can help to boost customer confidence in your business, as they will feel more secure when making a purchase.
There are many different online payment systems available, and each has its own set of customizations, features and benefits. When choosing an online payment system for your business, it’s essential to compare the different options and choose the one that best meets your needs.
In this article, we’ve listed some of the best alternatives to Klarna so you can make an informed decision about which payment system is right for your business.
PayPal Credit and Laybuy are two of the best alternatives, but both Clearpay and Zilch also offer plenty of benefits and have quickly become trusted brands in this space.
Of course, there’s always the option to add multiple Buy Now, Pay Later platforms to your checkout process. That way consumers get as much choice as possible while you increase conversion rates as much as possible.
To learn more about what merchant machines are the best for your company, check out our website.