COLUMBUS, Ohio—Buy now, pay later provider Klarna has announced a partnership with small-business management software company FreshBooks that will allow businesses in the United States and Canada to offer customers additional payment options directly through their invoices.
According to Klarna, the partnership integrates its buy now, pay later (BNPL) services into FreshBooks’ existing invoicing and payment systems without requiring merchants to complete additional setup.
The companies said the arrangement is designed to help small businesses improve cash flow while giving customers greater flexibility in paying for products and services.
“Main Street small businesses and entrepreneurs are the backbone of the U.S. and Canadian economy, and getting paid reliably and on time is what keeps them running,” said Lisa Robinson, Klarna’s head of partner success for the U.S. East Coast and Canada.
“By partnering with FreshBooks, business owners can now use Klarna to offer their customers more ways to pay—in full, in four interest-free installments or financed over time,” Robinson added. “Customers get the payment flexibility while FreshBooks users retain the confidence of predictable cash flow.”
How the Service Works
Klarna said the integration will allow small businesses to offer several payment choices depending on the size and nature of a transaction.
For example, a plumber billing for a routine service call could accept immediate payment in full, while an auto repair shop handling a more expensive repair could allow customers to divide the cost into four installments.
Jeff Imm, general manager of financial services and payments at FreshBooks, said integrating payment processing and reconciliation directly into business software can benefit both merchants and customers.
“Offering BNPL as a payment choice brings even more convenience to the process and has been shown to increase small business speed of cash flow and revenues substantially, while removing their risk of not receiving payment for their product or services,” Imm said.
Klarna Also Introduces International Currency Service
In a separate announcement Oct. 21, Klarna said it launched Consumer FX, a service that allows shoppers to purchase from participating Klarna merchants worldwide and pay in their own currencies without an exchange fee.
According to the company, the service allows Klarna-connected merchants to sell to its 120 million consumers across 26 countries without additional technical integration, establishing a local business entity or opening a foreign bank account.
Klarna said it also handles foreign exchange disclosures, customer consent and regulatory compliance associated with the transactions.
The company reported that initial results from the service showed:
- A 5% increase in merchant conversion rates.
- A 6% increase in merchant sales.
Klarna said the service is intended to reduce barriers to international commerce by allowing merchants to reach consumers in additional markets while simplifying currency-related transactions.
