Klarna and Nets introduces new “pay later” payment solution for physical stores

Klarna and Nets have jointly developed a new payment solution for use in physical stores in the Nordics, beginning with selected pilot stores in Sweden. The new innovative solution gives the consumers a quick and simple option to pay later in-store.

The jointly developed innovative payment solution gives consumers a quick and simple option to pay for the purchase later – fully or in part – when shopping in physical stores. Consumers simply use the Nets terminal and their own mobile phone to complete the transaction.

There is strong consumer demand for financing when shopping online but until now is rarely used in-store due to complex and awkward processes. This new solution by Nets and Klarna will now give consumers the same flexibility and convenience to ‘pay later’ in-store as they currently experience online. The combination of Klarna’s payment solution together with the pan-Nordic distribution network of Nets brings an unrivalled value proposition to both merchants and consumers.

“Millions of Nordic consumers use our smooth payment solutions when shopping online and we want to offer the same possibilities and experience in physical stores”, says Martin Tivéus, Chief Commercial Officer at Klarna.

In-store consumer financing from minutes to seconds
The new service is easy to seamlessly integrate in existing Nets terminals and will help merchants to increase turnover with a “pay later” option for consumers. Merchants will see clear benefits such as an increased amount of completed purchases and potentially increase the average order value. It requires no additional processes and zero interaction with the in-store staff, making it significantly smoother.

“We are always striving to create true value for both merchants and consumers”, says Patrick Höijer, Senior Vice President at Nets in Sweden. ”This new in-store finance solution that we first integrate with Klarna in selected pilot stores in Sweden exemplifies how payment terminals can act as a node for various services and not just to receive card payments.”

Current over-the-counter in-store financing solutions involve complex manual procedures with an average time of six minutes and more than ten steps to complete the purchase. For consumers it causes stress, like answering challenging questions about income and family status.

The new service from Nets and Klarna is on par with the experience of when paying with a payment card in a store, enabling the average purchase to be completed in less than one minute. It also ensures privacy for the consumer and is without any administration for the merchants. Klarna’s innovative in-store promotions of the service will also help to drive additional purchase conversions.

Step by step how the new payment solution works:

  • The product is scanned in the cash register in the store.
  • The customer is given the option to select “pay later by invoice” in the Nets terminal.
  • If chosen, the customer enters the mobile phone number in the terminal.


There is no need for an app or registration to use the solution.

  • The customer approves the purchase through a received SMS link and is then automatically forwarded to the Klarna checkout page.
  • The customer accepts by clicking the “complete purchase” button on the mobile phone.  

The new service is first introduced by Klarna and Nets in selected pilot stores in Sweden. Even though this joint solution is first to market, both Klarna and Nets are free to cooperate with other payment providers and credit providers.

Source: KLARNA

Baard Persson Vaage

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