How to Integrate Klarna in Shopify
In the ever-evolving world of e-commerce, providing customers with flexible payment options is crucial. Klarna, a leading global payments provider, offers just that. With its “buy now, pay later” model, Klarna has revolutionized the way consumers shop online. For Shopify store owners, integrating Klarna can lead to increased conversions, higher average order values, and enhanced customer loyalty. In this comprehensive guide, we’ll walk you through the steps to seamlessly integrate Klarna into your Shopify store.
Understanding Klarna’s Value Proposition
Before diving into the integration process, it’s essential to understand why Klarna stands out in the crowded payment gateway landscape:
- Customer Flexibility: Klarna offers an exceptional customer experience with their payment option called Klarna Slice It. With Klarna Slice It, customers have the flexibility to shop now and pay later, providing them with a range of payment options to suit their needs. They can choose to pay within 14 days, through installments, or even at the end of the month.
This level of flexibility can significantly boost consumer confidence and spending. Customers can enjoy the convenience of making purchases without immediate payment, giving them the freedom to manage their finances effectively. Whether they need a short-term solution or prefer to spread the cost of their purchase over time, Klarna Slice It offers a convenient and tailored approach.
Once customers have selected Klarna Slice It as their preferred payment option, they will be redirected to Klarna’s website. Here, they can easily choose the installments that best fit their budget and financial situation. To ensure a smooth process, Klarna conducts a credit check to determine the customer’s eligibility for financing and provide them with available monthly installment options.
The actual payments are captured at a later time, offering customers the convenience of making payments through the Klarna app or customer portal. They have the flexibility to use another payment method, such as a credit card, or link their bank account to their Klarna account for seamless transactions.
It’s important to note that while Klarna Slice It provides remarkable flexibility, there may be additional fees associated with this payment option. For a comprehensive understanding of these fees, customers can visit Klarna’s website, where they will find detailed information to make an informed decision.
In conclusion, Klarna Slice It not only empowers customers with the freedom to shop now and pay later, but it also ensures a seamless and personalized experience. By offering a variety of payment options and maintaining transparency regarding any additional fees, Klarna continues to enhance the customer experience and boost consumer confidence in their purchasing journey.
- Increased Conversion Rates: By offering a frictionless checkout experience, Klarna can help reduce cart abandonment rates.
- Safety and Security: Klarna assumes all risk, ensuring that merchants get paid while offering buyers payment protection and peace of mind.
- Global Reach: Klarna is widely accepted in numerous countries, making it a preferred choice for businesses with a global customer base.
Prerequisites for Klarna Integration
Before integrating Klarna with Shopify, ensure you have the following:
- An active Shopify store.
- A Klarna merchant account. If you don’t have one, you can apply on Klarna’s official website.
- Ensure that your Shopify store’s currency matches one of the currencies supported by Klarna.
Step-by-Step Guide to Integrate Klarna in Shopify
1. Accessing the Shopify Admin Panel
Log into your Shopify store’s admin panel. Navigate to the ‘Settings’ option, usually located at the bottom left of the dashboard, and select ‘Payment providers’.
2. Choosing a Payment Provider
In the ‘Payment providers’ section, you’ll see various payment gateways. Scroll down to the ‘Alternative payments’ section and click on the ‘Choose alternative payment’ button.
3. Selecting Klarna
From the list of alternative payment methods, select ‘Klarna’. This will open up fields that you’ll need to fill in with details from your Klarna merchant account.
4. Entering Klarna Account Details
You’ll be prompted to enter your Klarna API credentials. These include the ‘EID’ (store ID) and shared ‘secret’. You can find these details in your Klarna merchant portal.
5. Configuring Klarna Settings
Once you’ve entered your Klarna credentials, you’ll have the option to configure how Klarna will appear and function on your store. This includes setting the payment terms (e.g., pay later, pay now, slice it) and customizing the appearance of Klarna’s widget on your checkout page.
6. Saving Changes
After configuring Klarna to your preference, ensure you save all changes. This will activate Klarna as a payment method on your Shopify store.
7. Testing Klarna Integration
Before going live, it’s a good practice to test the Klarna integration. Add a product to your cart and proceed to checkout. Klarna should appear as a payment option. Follow the prompts to ensure the payment process is smooth and functional.
Customizing Klarna’s Appearance on Shopify
Klarna offers a range of customization options to ensure its widget aligns with your store’s branding. While in the Klarna settings on Shopify:
- Choose a theme color that matches your store’s design.
- Decide on the widget’s position, either above or below the checkout button.
- Customize the text and language to cater to your target audience.
Managing Klarna Orders in Shopify
Once you start receiving orders through Klarna, managing them is similar to handling orders from other payment gateways:
- View all orders in the ‘Orders’ section of your Shopify admin.
- Klarna orders will have a unique reference, making it easy to identify them.
- Refunds, cancellations, and other order management tasks can be done directly from Shopify, and the changes will reflect in your Klarna merchant account. Klarna allows refunds to be processed within 180 days of the initial charge of an order.
This means that if a customer requests a refund within this timeframe, you can easily process it through Shopify, ensuring a seamless experience for both you and your customers.
However, it is important to note that if 180 days have passed from the date of the initial charge, refunds through Klarna payment option are no longer possible. In such cases, it is recommended to work with the customer and use an external service to return the funds to them. This ensures that even after the 180-day period, you can still provide a solution to your customers and maintain a positive customer experience.”
Benefits of Integrating Klarna in Shopify
- Enhanced User Experience: Klarna’s smooth and intuitive interface ensures customers have a hassle-free checkout experience.
- Higher Sales: With the “try before you buy” model, customers are more likely to make purchases, leading to increased sales.
- Trust and Credibility: Klarna’s reputation can enhance your store’s credibility, making customers more comfortable shopping with you.
Are there any additional fees associated with Klarna Slice It?
Yes, there may be additional fees associated with Klarna Slice It. To get detailed information about these additional fees, it is recommended to visit Klarna’s official website.
Can payments be captured manually with Klarna Slice It?
Yes, payments can be captured manually with Klarna Slice It. If you have set up your settings to capture funds manually, you will not receive the money automatically from orders that are paid for using Klarna Slice It. In order to receive payment, you will need to manually capture the authorized payment as soon as possible. When you choose to capture the payment manually, you will be charged a third-party transaction fee, which is based on the amount that you capture at the time of the manual capture.
Can payments be captured manually with Klarna Pay Later?
Yes, payments can be captured manually with Klarna Pay Later. In your payment settings, you have the option to capture payments automatically when an order is placed, or to capture them manually within 28 days of an order. By default, payments are captured automatically. However, if you prefer to capture payments at a later time, you can set your payment settings to capture payments manually.
When a payment is captured manually, the funds are provided to you immediately by Klarna, and a payment link is emailed to the customer. The customer then uses the link to pay Klarna for their order, usually within 14 days depending on their offer at checkout. This manual payment capture workflow is particularly useful if you provide customers with the option to pay with Klarna and want to capture payments after the order is fulfilled. It ensures that customers receive their payment link close to when they receive their order and aligns the 14-day payment window with the 14-day period they have to decide whether to keep the order based on Klarna’s Buyer Protection Policy. You can adjust the way you capture payments, including enabling manual capture, in the Payments section of your Shopify admin.
It’s important to note that the manual capture option applies to all payments, not just those processed through Klarna. Additionally, it’s essential to be transparent with customers about your delivery timelines to ensure they are aware of any potential issues that may not perfectly align with this payment method. Please remember that if you choose to manually capture payments, you have until midnight UTC on the 28th calendar day from when the order was placed to capture the payment. If you miss this timeframe, the payment will expire and become void.
How does Klarna handle chargebacks?
Klarna handles chargebacks by following a specific process. If a dispute between the customer and the merchant is not resolved within 21 days, Klarna takes action. They contact the customer to address the unresolved issue and subsequently notify the merchant about the dispute via email. Klarna provides the merchant with the Klarna order number, which can be effortlessly used in the Shopify admin to locate the specific order in question. After receiving the dispute notification from Klarna, the merchant has a 7-day period to respond and provide the necessary information regarding the dispute. This allows Klarna to efficiently manage chargebacks and facilitate communication between the customer and the merchant for a prompt resolution.
What payment options are offered by Klarna?
Klarna offers several payment options to customers. Here are the details:
1. Klarna Pay Later: This payment method allows customers to make a purchase and agree to pay for it at a later date. They can choose between a two-week or two-month pay-back schedule. Klarna pays for the order immediately, and the funds are included in your next Shopify Payments payout. Klarna Pay Later is an incredibly convenient payment method that lets customers shop without having to pay upfront.
With Klarna Pay Later, customers have the option to defer their payment either within 14 days, through installments, or at the end of the month. This flexibility is designed to boost consumer confidence and encourage higher spending. By allowing customers to shop now and pay later, Klarna Pay Later empowers shoppers to make purchases without the immediate financial burden. This user-friendly payment solution provides a seamless experience, ensuring that customers can enjoy their purchases while having the flexibility to manage their payments according to their preferences.
2. Klarna Pay Now: Klarna Pay Now is one of the payment terms offered by Klarna, allowing customers to make immediate payments at the time of purchase. With Pay Now, customers can seamlessly complete their transactions without any delay, providing a convenient checkout experience. By selecting this payment option, customers can avoid the hassle of installment payments or waiting until the end of the month to make a payment.
Klarna Pay Now works by connecting with the customer’s online banking details. Once the customer selects Pay Now as their payment option, Klarna Pay Now securely connects with their bank account. This connection enables the funds to be immediately debited from the customer’s bank account, ensuring a swift and efficient payment process.
As a merchant, you benefit from Klarna Pay Now by receiving the funds in your next payout. This ensures a steady cash flow and allows you to fulfill orders promptly. Integrating Klarna Pay Now into your Shopify store is a simple and effective way to provide customers with a fast and secure payment option. By offering this seamless checkout experience, you can increase conversions and enhance customer satisfaction.
In conclusion, Klarna Pay Now is a valuable payment option that provides customers with the convenience of immediate payment at the time of purchase. With its secure connection to the customer’s bank account, funds are swiftly debited, ensuring a seamless and efficient payment process. By integrating Klarna Pay Now into your Shopify store, you can provide customers with a fast and secure payment option, leading to increased conversions and customer satisfaction.
3. Klarna Slice It: This option enables you to offer your customers financing, allowing them to pay for their purchase in installments over a period of 6 to 36 months. They can choose to pay with or without interest. Klarna Slice It also covers any fraud and financial risks associated with offering customers the option to pay over time.
These payment options function differently from the usual checkout process. For example, when customers use Klarna Pay Later, they are redirected to Klarna’s checkout page to create an account or log in if they have an existing one. The payment process is handled within the Klarna interface, not through your store checkout. If customers have any issues or questions, they need to contact Klarna directly. Customers in the following countries or regions can use Klarna payment options at checkout:
– United Kingdom
It’s important to note that if you refund a transaction processed by Klarna, the processing fee charged by Shopify Payments is not refunded. Klarna allows refunds to be processed within 180 days of the initial charge of an order. In case of a chargeback, Klarna encourages the customer to contact you directly. If the dispute is not resolved after 21 days, Klarna contacts the customer and notifies you via email, providing the Klarna order number for reference. You have 7 days to respond to the dispute notification from Klarna.
How does Klarna work with Shopify Payments?
Klarna is a payment method that integrates with Shopify Payments and provides customers with multiple payment options. When customers choose to pay using Klarna, the checkout process differs slightly compared to the regular Shopify checkout. For instance, if a customer selects Klarna Pay Later, they will be redirected to Klarna’s checkout page where they can either create a new Klarna account or log into their existing one. The actual payment transaction occurs within the Klarna interface, and not through the store’s checkout. If customers encounter any difficulties or have questions regarding their Klarna payment, they should reach out to Klarna directly. As a merchant, you will receive your payment as usual through Shopify Payments.
Integrating Klarna into your Shopify store can be a game-changer. With its unique payment model and a focus on enhancing customer experience, Klarna can drive sales and elevate your store’s reputation. By following the steps outlined in this guide, you can ensure a smooth integration process and start offering your customers a flexible and secure payment option. As the e-commerce landscape becomes more competitive, having Klarna in your arsenal can give you the edge you need to stand out and succeed.