Radial Partners with Klarna to Extend Payment Options for Retailers
KING OF PRUSSIA, Pa., Dec. 11, 2019 /PRNewswire/ -- Radial, the leader in omnichannel commerce technology and operations, today announced a new partnership with Klarna, the leading global disruptor of payments and banking. Just in time for the holiday season, this partnership will allow Radial's retail customers to benefit from flexible financing, giving shoppers the choice to pay for purchases in installments.
The holiday season is undoubtably the "make it or break it" time of year for retailers. Research from the National Retail Federation indicates that holiday sales represent about 20% of annual retail sales, however that rises to about 30% for some retailers such as hobby and toy brands. This year, with holiday spending expected to increase between 3.8% and 4.2% over 2018 levels, retailers have a unique opportunity to build new shopper loyalty while reaching revenue goals. By partnering with Klarna, Radial will help retailers fully capitalize on the holiday season and drive increased sales into 2020 by seamlessly extending their payment options with an easy and risk-free model.
"With credit card debt in the U.S. still steadily climbing (increasing 31% from 2015 to 2019), today's shoppers are turning to installment payments to lighten their financial burden," said KC Fox, Senior Vice President, Technology Services at Radial. "Retailers who offer flexible payment options, especially short-term, no-interest solutions that don't require a credit agreement, stand to significantly increase checkout conversions this holiday season."
Newly available for Radial customers, Klarna's most popular "buy now, pay later" model is proven to increase average order value by 68%. It allows shoppers to purchase what they want today, and pay later, in four interest-free installments.
Radial, which offers complete full-service solutions that address every aspect of payments, tax and fraud, will incorporate these Klarna offerings into services available for its expansive retailer base. These flexible financing options from Klarna are designed to be 100% risk free, as all retailers are paid upfront in full for each transaction while Klarna is responsible for collecting payment from customers.
"The business impact of offering more flexible payment options is clear. Klarna customers in the U.S. who began offering the four interest-free installment payment option reported a 44% increase in conversions compared to cards, and 21% higher purchase frequency," said David Sykes, Head of US at Klarna. "Klarna powers flexible payment options for over 190,000 merchants globally, and we're thrilled to now offer these opportunities to Radial's retail client base."
To learn more about how Radial's retail clients can benefit from this partnership, and to start offering shoppers more choices at checkout this holiday season, click here.
Radial, Inc., a bpost group company, is the leader in omnichannel commerce technology and operations. Premier brands around the world confidently partner with Radial to deliver their brand promises, anticipate and respond to industry disruption, and compete in a rapidly evolving market. Radial's innovative solutions connect retailers and customers through advanced omnichannel technologies; intelligent payments and fraud protection; efficient fulfillment, supply chain services; and insightful customer care services – especially where high-value customer experiences are critical. We are flexible, scalable, and focused on our clients' business objectives. Learn how we deliver today's retail for you at radial.com and follow us on Twitter @radialcorp.
We make shopping smooth. With Klarna consumers can buy now and pay later, so they can get what they love today. Klarna's offering to consumers and retailers include payments, social shopping, and personal finances. Over 190,000 merchants, including H&M, Adidas, IKEA, Expedia Group, ASOS, Peloton, Abercrombie & Fitch, Michael Kors, Nike, AliExpress, Superdry, Sephora, Spotify, Wayfair, Gymshark, Samsung, Zara, Topshop, The Hut Group, Steve Madden, Boozt, Sonos, Agent Provocateur, Lufthansa, ETSY, Daniel Wellington and many more have enabled Klarna's innovative shopping experience online and in-store. Klarna is the most highly valued fintech in Europe with a valuation of $5.5bn and one of the largest private fintechs globally. Klarna was founded in 2005, has over 2,500 employees and is active in 17 countries. Klarna's North American offices are in Columbus, Ohio, Los Angeles and New York. Klarna Credit is issued by WebBank, member FDIC. For more information, visit klarna.com.
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