Canadian ecommerce firm Shopify has partnered with Swedish bank Klarna to integrate its Sofort Pay later and Pay now solution into Shopify Payments, the firms announced in a joint statement
This will mean that German merchants will be able to offer customers two popular ecommerce payment methods through Shopify Payments, enhancing the customer experience and providing additional flexibility for buyers to choose how and when they will pay.
Tobi Lütke, Shopify CEO, said:
"Shopify accidentally went global when merchants around the world began using our software. Now, we're strategically going local. We want to make sure that Shopify works perfectly in Germany, and Klarna and its payment alternatives really complete our checkout system."
The firm’s Payments platform integrates with existing online stores quickly and easily, with Klarna’s Sofort solution available as default payments with no additional costs for merchants.
“Together, Klarna and Shopify are providing SME merchants a competitive advantage, helping them to unlock growth, boost conversion rates and drive customer satisfaction and loyalty through a smoother shopping experience,” the statement said.
The Pay later option available through Klarna’s Sofort enables customers to pay 30 days later without any additional fees or interest charges, offering the option to ‘try before you buy’.
"Since we started using Klarna's payment alternatives we've seen an increase of up to 20% in revenue,” said Paul Franzreb, CEO and co-founder of German watch and accessories company Paul Valentine.