Klarna has partnered with accountancy software provider Xero to enable small businesses to accept buy now, pay later (BNPL) payments.
For Xero’s millions of customers (excluding Australia), this collaboration allows them to offer Klarna’s alternatives to traditional credit, ensuring they can receive payment upfront.
Klarna verifies a consumer’s eligibility before approving each purchase and presents a clear installment plan, leading to a repayment rate of 99% and 40% of orders being settled early.
David Sykes, chief commercial officer at Klarna, commented: “Klarna’s flexible payment options have traditionally been linked to apparel, but that has been evolving. This partnership extends our flexible payment solutions to various micro businesses, enabling business owners to receive timely payments while providing their customers the freedom to choose how and when to pay.”
He added, “For instance, gardeners and landscaping services using Xero can now offer Klarna’s BNPL option, plumbers and heating engineers can address client needs while allowing them to spread costs, and small businesses in the construction sector can break down the cost of smaller projects into three interest-free installments.”