(24 September 2024 – Global) Klarna and Xero have partnered to help small businesses accept payments from customers wanting a ‘buy now, pay later’ option.
With this option, small businesses can get paid up front while their customers can pay over time without high interest rates or fees, the companies said in a Wednesday (Sept. 25) press release. The BNPL option is not available to Xero’s customers in Australia.
David Sykes, Chief Commercial Officer, at Klarna says: “Klarna’s flexible payment options are typically associated with clothes and shoes but that has been changing for a long time. This partnership brings Klarna’s flexible payment options to micro businesses of all kinds so business owners can get paid on time and their customers can choose how and when to pay. This includes businesses where gardeners and landscaping services using Xero can now offer a Klarna BNPL payment option, plumbers and heating engineers using Xero can fix their customers’ boilers and let them spread the cost while small businesses involved in the construction industry could spread the cost of smaller projects over three interest-free installments.”
Bharathi Ramavarjula, SVP Payments & Ecosystem at Xero said: “We know that maintaining a healthy cash flow is critical to a successful business, and offering more ways to pay supports increased business growth and getting paid faster. In fact, our recent research report shows that if a business doesn’t offer customers their preferred way to pay, they are prepared to take their business elsewhere. By enabling our customers with more ways to pay, including Klarna, we can help them retain customers and increase their revenue.”