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.
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%.
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.