Klarna offers a variety of payment solutions for businesses and consumers, with Klarna Checkout and Klarna Payments being two of its most popular services. Although both solutions allow businesses to provide flexible payment options, they serve different purposes and are structured differently. Let’s explore the key differences between Klarna Checkout and Klarna Payments to help you choose the right solution for your needs.
1. Klarna Checkout
Klarna Checkout is an all-in-one payment solution that simplifies the entire checkout process for businesses. It streamlines multiple payment methods into a single integration, making the shopping experience seamless and efficient for customers.
Key Features of Klarna Checkout:
- Comprehensive Payment Gateway: Klarna Checkout includes all major payment methods (e.g., credit cards, debit cards, PayPal, and Klarna’s financing options), allowing customers to select their preferred payment option at checkout.
- One-Click Purchase: For returning customers, Klarna Checkout offers a one-click purchase experience, where customers can complete the transaction quickly without re-entering their payment details.
- Integrated Checkout Page: It takes over the entire checkout page, replacing the store’s existing checkout process. The business doesn’t need to manage different payment methods individually.
- Improved Conversion Rates: By reducing friction during checkout, Klarna Checkout is designed to increase conversion rates, making it easier for customers to finalize their purchases.
How It Works:
- Once a customer adds items to their cart and proceeds to checkout, they are directed to Klarna Checkout’s interface.
- Customers choose their preferred payment method, whether it’s direct debit, card payment, or one of Klarna’s flexible payment options.
- Klarna Checkout ensures the transaction is processed and the customer’s details are stored for future one-click purchases.
2. Klarna Payments
Klarna Payments allows businesses to offer Klarna’s financing options at different points in the purchasing process, without replacing the entire checkout experience. It’s more modular and focuses on integrating Klarna’s payment solutions within an existing payment gateway.
Key Features of Klarna Payments:
- Modular Payment Solution: Klarna Payments doesn’t take over the entire checkout process; instead, it provides Klarna’s payment options (such as “Pay Later,” “Pay Now,” and “Slice It”) as separate offerings that can be added alongside other payment methods.
- Flexible Integration: Businesses can integrate Klarna Payments at different touchpoints in the customer journey, such as on the product page, at the checkout, or during order confirmation.
- Customizable: Klarna Payments allows businesses to maintain control over their checkout page design while adding Klarna’s payment options wherever it makes sense in the customer flow.
- No Full Checkout Overhaul: Klarna Payments is ideal for businesses that want to retain their existing checkout structure but still offer Klarna’s flexible payment solutions.
How It Works:
- Customers see Klarna’s payment options (e.g., “Pay Later” or “Installments”) during the checkout process or at earlier stages in the shopping journey.
- Customers can select their preferred Klarna payment method without Klarna replacing the store’s main checkout page.
- Klarna handles the financing, while the business maintains control over other payment options and the checkout experience.
3. Key Differences Between Klarna Checkout and Klarna Payments
| Feature | Klarna Checkout | Klarna Payments |
|---|---|---|
| Scope | Full checkout solution | Modular payment solution |
| Integration | Replaces the entire checkout process | Adds Klarna options within the existing checkout process |
| Payment Methods | Offers a wide range of payment methods, including Klarna’s | Focuses on Klarna’s payment options (Pay Now, Pay Later, etc.) |
| Customer Experience | Streamlined one-click purchases for returning customers | Klarna options integrated at specific touchpoints |
| Flexibility | Less flexible, as it takes over the whole checkout | More flexible; Klarna payment methods are added as needed |
| Use Case | Best for businesses that want to simplify the entire checkout | Ideal for businesses that want to keep their existing checkout |
4. When to Choose Klarna Checkout
- New Businesses or Startups: If you’re setting up a new online store and want a comprehensive, ready-made solution, Klarna Checkout can be a great option. It handles all the technicalities of processing payments, and you don’t need to worry about integrating multiple payment methods separately.
- Improving Conversions: Klarna Checkout is known for reducing cart abandonment, as the streamlined process simplifies the checkout experience, encouraging customers to complete their purchases.
- One-Click Payments: If you value the ability to offer returning customers one-click purchasing, Klarna Checkout is the way to go.
5. When to Choose Klarna Payments
- Existing Businesses with Established Checkout Systems: If you already have a checkout process you’re satisfied with, Klarna Payments allows you to add flexible payment options without disrupting your existing setup.
- Greater Control: Klarna Payments gives you more flexibility in where and how you offer Klarna’s payment solutions, whether that’s on the product page or during checkout.
- Targeted Payment Options: Klarna Payments is ideal if you only want to offer Klarna’s specific financing solutions (like installments or “Pay Later”) and maintain control over the rest of your payment methods.
Conclusion
Both Klarna Checkout and Klarna Payments offer flexible payment solutions designed to improve the customer experience. Klarna Checkout is a complete payment gateway that handles the entire checkout process, while Klarna Payments allows businesses to integrate Klarna’s payment options within their existing checkout system. The right solution for your business depends on whether you want a complete overhaul of your checkout process (Klarna Checkout) or simply want to add Klarna’s payment flexibility alongside your current setup (Klarna Payments).