Klarna and Xero bring BNPL to small businesses

editorial

This content was selected, created and edited by the Finextra editorial team based on its relevance and interest to our community.

For Xero’s millions of customers (although not in Australia), Klarna’s offering alternatives to traditional loans means they can be paid in advance.

Klarna says it checks a consumer’s eligibility before approving each purchase and provides a clear installment plan, meaning 99% of loans are repaid and 40% of orders are repaid early.

David Sykes, Klarna’s chief commercial officer, said: “Klarna’s flexible payment options are usually associated with clothing and shoes, but that has long since changed.

“This partnership brings Klarna’s flexible payment options to micro-businesses of all types, so business owners can get paid on time and their customers can choose how and when they want to pay.”

“This includes businesses where gardening and landscaping companies using Xero can now offer a Klarna BNPL payment option, plumbers and heating engineers using Xero can repair their customers’ boilers and allow them to spread the cost, while small companies operating in the construction industry could spread the costs of smaller projects over three interest-free installments.”