Online payments as they should be

Transcription

1 Online payments as they should be

2 Do you want to increase your sales? Klarna helps you increase your sales by offering the most preferred payment option in Europe - risk free. We have already helped merchants increase their sales with on average 20%, among them Spotify, Marks&Spencer, Vistaprint, Fab and Bigpoint. Klarna is backed by Sequoia Capital, DST Global, General Atalantic and Atomico and we are the market leaders in Europe in invoicebased payments.

3 Klarna s journey The vision of safer and simpler e-commerce is born. The founders of Klarna present an idea that will change the way people shop online. With 800 employees and counting, a new product: Klarna Checkout and new market entries, the future is very bright. We decide to expand and offer Finnish, Norwegian and Danish consumers our payment solutions. We also introduce our second payment service, Account Investment AB Öresund becomes a partner in the company. Klarna receives financial backing from DST Global and General Atlantic. Michael Moritz joins the board and we receive an investment from Sequoia Capital. Klarna is growing and expanding rapidly by establishing ourselves in Germany and the Netherlands. We also launch our third payment service, Klarna Mobile.

4 Invoice the most preferred payment option Germany How would you prefer to pay if you buy on the Internet? Source: Cint/OpinionHUB ,6% 27% 15% 2,2% 1% 0,5% Invoice after delivery PayPal Credit or debit card Bank transfer Cash on delivery Prepayment Austria How would you prefer to pay if you buy on the Internet? Source: GfK % 25% 16% 3% 3% 1% 3% Invoice after delivery Credit or debit card PayPal Bank transfer Cash on delivery Prepayment Other

5 The Netherlands How would you like to pay when shopping online? Source: TNS NIPO The Netherlands % 33% 8% 5% 9% ideal Invoice after delivery Credit or debit card PayPal Others Sweden, Norway and Finland How would you like to pay when shopping online? Source: Posten Norden - E-handel i Norden 2011 (Sweden, Norway and Finland). 34% 29% 24% 11% 2% Invoice after delivery Direct Bank Transfer Credit or debit card Others Don t know

6 Our Services Klarna Invoice Klarna Account Klarna Campaigns Klarna Mobile

7 Klarna Invoice

8 Klarna Invoice make it simpler for your customers! Simplify shopping for your customers and offer them one of the most popular payment methods in Europe: paying by invoice. Klarna Invoice makes it easier for your customers to shop in your store while only having to enter information they have readily at hand: name, date of birth and postal address. However, Klarna Invoice does not only make buying easier, it also offers more security. Payment is not due until 14 days after delivery this way your customers can be sure to always only pay for what they really have ordered.

9 What I can see is that we have almost a 20% increase in customers who choose invoice today in comparison to when we used another another provider with a less recognized name. We thus have significantly higher completion rate of those who choose Klarna invoice than those who choose card or direct bank transfer and we see that approximately 40% of our customers choose to shop with Klarna in our webshop. Fredric Boson E-Commerce Manager, topformula TopFormula Healthcare AB has manufactured and sold dietary supplements since Their range of products includes everything from simple vitamins and minerals to advanced energy boosters.

10 How it works Consumer 1. The consumer makes a purchase, chooses to pay with Klarna Invoice, enters only top-of-mind information and clicks buy. 2. The consumer receives the goods and can check them before payment is made. 3. The consumer pays the invoice to us within 14 days. Merchant 1. An invoice is created automatically that you can print and send along with the order. 2. We pay you no matter what happens, since we assume all the risk.

11 What Klarna Invoice means for you and your e-store Your customers can shop with Europe s most preferred payment method. Because Klarna Invoice is one of the simplest ways to pay, it increases spontaneous purchases. We take care of the entire payment process and handle all administration. When business is going well for you it s also going well for us. We charge you per succeeded transaction and that s why our main goal is to increase your sales and approve most purchases. We assume the risk and make sure you always get paid. Your consumers can even convert their invoices and pay in installments with Klarna Account.

12 We were able to increase our average basket value, improve our acceptance rate and conversion rate. Additionally, we have decreased our administration and workload thanks to Klarna which makes us happy! Mattias Schumacher Head of Operations and Customer Service hitmeister.de Hitmeister, is one of Germany s largest online marketplaces containing more than 12 million new and used products. Their goal is to offer customers a 100% safe way of buying and selling products online in a simple, inexpensive and personal way.

13 The Klarna brand During the fall of 2012 Klarna almost doubled our degree of brand awareness in Germany. We are by far the most known provider of invoice payments in Europe and grow faster than any other payment provider. 13% 7% +86% June 2012 November 2012 Klarna s degree of brand awareness in Germany Source: Bevölkerungsrepräsentative Studie, Blue Carrot, 2012 Selection: Consumers that have made purchases online during the last three months, age Question: To what degree are you familiar with the following payment methods?

14 Since Klarna is the market leader in the area of after delivery payments it was an easy choice to use Klarna! Robert Kudraß apo-discounter.de Apo-discounter is the market leading online pharmacy in Germany offering more than 30,000 pharmaceutical products. Their brand stands for high security, quick delivery and affordable prices.

15 Klarna Account

16 Klarna Account increase your basket value With Klarna Account you let your customer decide in what speed they would like to pay, without any pre-registration. They can pay the whole amount right away or as little as 1/24 of the total amount per month. Also you give your customers the opportunity to gather all their purchases onto a single invoice. Klarna Account is in high demand by online shoppers and we have 1,400,000 Account users today. Most merchants that use Klarna Account see a 40% increase in the average basket value.

17 Purchases made with Klarna Invoice have a 25% higher average basket value than other payment methods. With Klarna Account, the basket value is even higher, at 35% above the average order value. In total, the use of Klarna s payment methods increased Schuhtempel24 s sales by 30%. Patrick Brückner Deputy CEO, Schuhtempel24.de Schuhtempel24.de is a women s shoe store focusing on offering a wide assortment and fair pricing. Schuhtempel24 today ranks among the top 100 largest e-stores in Germany and has an assortment of over 8000 different shoe models.

18 How it works Consumer 1. The consumer makes one or several purchases, chooses to pay with Klarna Account, enters top-of-mind information and clicks buy. 2. The consumer receives the goods and can check them before payment is made. 3. We send an invoice where all purchases with Klarna are listed. The consumer can choose to part-pay the invoice or pay everything at once. Merchant 1. An invoice is created automatically that you can print and send along with the order. 2. We pay you no matter what happens, since we assume the risk.

19 Klarna Account in the store Hacking Jacket in Herringbone 240 EUR Size Color i Pay in installments from 20 EUR/Mth Add to basket By displaying the part-payment amount next to the product, you increase the probability of a purchase. A purchase with Klarna Account Turn of the month The consumer makes one or several purchases. The consumer receives a collective invoice with all purchases from the past month. The consumer pays at the end of the month.

20 Klarna Campaigns

21 Klarna Campaigns increase your sales At Klarna we are always working with finding new ways of further increasing your sales. One way of doing this is with the special sales campaigns we conduct a few times a year to increase your customers buying power. Besides special campaigns, we also have what we call fixed campaigns that let your customers pay for their purchases in installments over a fixed number of months.

22 Klarna s special campaigns are very popular among our customers. The Christmas campaign especially is very popular and appreciated and our average basket value is usually greater in those who take advantage of these promotions Calle Johansson founder and CEO Nordicink/Nordicfeel NordicInk sells ink and toner cartridges online. We started as an UF business in 1998 and have since grown steadily each year with more and more satisfied customers. Nordic Feel sells perfume, cosmetics, skincare and hair care online.

23 How it works Consumer 1. The consumer makes one or several purchases, chooses to pay with Klarna Invoice, enters top-of-mind information and clicks buy. 2. The consumer receives the goods and can check them before payment is made. 3. We send an invoice to the consumer. If the purchase was made with fixed campaigns, it will be partpaid over 3, 6 or 12 months. However, if the purchase was made with a special campaign, the invoice will be paid in 3 4 months. Merchant 1. An invoice is created automatically that you can print and send along with the order. 2. We pay you no matter what happens since we assume the risk.

24 Fixed campaigns in the store With fixed campaigns, consumers can choose between different payment alternatives, with fixed times that are interest free for your customer. Special campaigns E.g. 4 months The consumer makes a purchase. The consumer receives the goods. The consumer pays after 4 months. During a special campaign, consumers are offered to pay in installments at 0% interest.

25 Klarna Mobile

26 Welcome to the mobile revolution Shopping on a mobile has always been more complicated than on desktop. While today almost 20% of all e-commerce traffic comes from shoppers using their mobile phones, conversion is still 60%* lower than those using desktops. Until now. Klarna Checkout takes the hassle out of buying on mobile by making it simpler than ever. The friction-free process lets consumers make a purchase instantly using only their , with no pre-registration or credit cards. The result? Mobile conversion rates are now just as high as on desktop, if not better! * Source: The State of Retailing Online 2012, a study by Forrester Research: 60% lower conversion on mobile devices compared to desktop. 87% of merchants experience lower conversion on mobile devices while Klarna Checkout actually converts 1.5% better on mobile than other desktop checkouts. 86% of companies view understanding mobile users as important/ very important

27 19% of Europeans have used their mobile to buy a product online Dibs % of all online shopping during black Friday in the US was mobile/tablet Mary Meeker state of the 10% of all global web traffic is mobile

28 Summary Klarna offers Europe s most preferred payment method We offer the most simple way to pay online We increase your conversion rate and sales Risk free for you as a merchant Integrating Klarna is fast and simple We are 800 people that work every day to increase your sales Klarna AB Norra Stationsgatan Stockholm, Sweden +46 (0)