Worldpay taps Klarna's installment pay to improve e-commerce
As more companies embrace installment payments as a credit card alternative, Worldpay is pushing the model through a collaboration with Klarna.
Worldpay merchants in Austria, Finland, Germany, the Netherlands, Norway, Sweden and the U.K. will be able to use Klarna's invoice and credit-based payments. Worldpay hopes this will boost e-commerce conversion rates by up to 20% and improve checkout.
The extra payment options will allow consumers to decide when to pay. Shoppers who opt for Klarna will be prompted to provide their email and postal code or equivalent, with options to pay via 14-day invoice, fixed or flexible installments that are spread over several months.
The collaboration gives Worldpay another e-commerce tool to battle Amazon following Vantiv's agreement to buy WorldPay, a deal that's expected to boost Vantiv's cross-channel technology capabilities.
It also expands Klarna's potential customer reach at a time when the company is adding regulatory approval to expand its product line and is attracting investment from Visa.