Etsy has integrated Klarna into the checkout process for its German website and app, providing buyers and sellers with additional payment option from June 2018 onwards.
The partnership enables Etsy to offer its customers the option to pay later using purchase by invoice. This expands its existing range of payment options like credit card (VISA, Mastercard, American Express), PayPal and the instant bank transfer service Sofortüberweisung (which also belongs to Klarna).
In addition, shoppers can also use Klarna to pay for goods by bank transfer or direct debit. Klarna will be added for merchants automatically via Etsy Payments with no additional costs, restrictions or effort.
The payment method is expected to reduce the number of customers who decide to cancel their purchase during the checkout process. Complicated registration processes and lack of available payment methods are still among the main reasons why shoppers decide not to complete their purchase.