Etsy has become the latest platform tuning into customer demand by enabling flexible payment access. Just in time for the holidays, the eCommerce marketplace is teaming up with “Buy Now, Pay Later” payment provider Klarna to drive sales in the creative goods category.
Through the partnership, Etsy now joins Klarna’s more than 200,000 global retail partners including notable brands like H&M, Macy’s and Nike.
“We’re excited to work with Klarna to expand the number of payment options available to shoppers through Etsy Payments,” said Kruti Patel Goyal, Etsy’s Chief Product Officer.
With the Klarna solution, Etsy is looking to offer extend flexible payments to its customers, allowing them to use the option on purchases between $50 and $10,000.
“Klarna will enable shoppers to buy on Etsy with greater financial control and convenience, without additional fees for sellers. We believe this flexible solution will be particularly valuable during the peak holiday shopping period when many shoppers are buying special items for their loved ones.”Kruti Patel Goyal, Etsy’s Chief Product Officer
The new offering comes at a time when BNPL solutions are driving consumer loyalty and, ultimately, sales. And while buy-now-pay-later services like Klarna were crafted to appeal to Gen-Z and millennials, these services are also gaining traction among older consumers as well, especially among those with higher incomes.
“Not only does this relationship bring new flexible payment options to shoppers globally, we’re proud to work with Etsy, a platform that supports small businesses around the world,” said Sebastian Siemiatkowski, CEO at Klarna.
And with this type of flexibility option, Etsy customers are more likely to add items to their cart and less likely to return, ultimately translating into increased average order value (AOV) for Etsy based businesses.
Klarna’s flexible payment options, enabled by Adyen, will be available on etsy.com starting in the U.S. market and will expand its offering to other major markets next year.