Omnichannel commerce technology provider Radial has partnered with Swedish payments firm Klarna to increase payment options for retailers.

Radial customers can now utilise the “buy now, pay later” model of Klarna.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

This will enable them to shop today and pay later in four tranches. Customers will not be charged any interest for the installment payment option.

Klarna head of US David Sykes said: “The business impact of offering more flexible payment options is clear. Klarna customers in the U.S. who began offering the four interest-free installment payment option reported a 44% increase in conversions compared to cards, and 21% higher purchase frequency.

“Klarna powers flexible payment options for over 190,000 merchants globally, and we’re thrilled to now offer these opportunities to Radial’s retail client base.”

Klarna’s installment payment model is said to boost average order value by 68%.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Radial senior vice president of Technology Services KC Fox said: “With credit card debt in the U.S. still steadily climbing (increasing 31% from 2015 to 2019), today’s shoppers are turning to installment payments to lighten their financial burden.

“Retailers who offer flexible payment options, especially short-term, no-interest solutions that don’t require a credit agreement, stand to significantly increase checkout conversions this holiday season.”

Meanwhile, Klarna unveiled plans to establish a tech hub in Berlin, Germany.

Expected to launch in early 2020, the new hub will have a capacity to accommodate over 500 employees.

The hub bolsters the firm’s presence in Germany, where it already has operations in Munich and Linden.