What kind of sales impact can we expect from using Klarna's "Pay Later" Shopify plugin?

Klarna is just one choice in the growing ecommerce “shop now, pay later” trend. But does it really make a difference for customers to have this option? After all, credit cards also allow online shoppers to “pay later.”

This “pay later” trend is kind of like the “layaway” tradition in brick-and-mortar stores. Like layaway, it’s really not aimed at the kind of consumer who has the financial flexibility of a credit card.

Instead, it offers a credit-like alternative to those shoppers who don’t qualify for a credit card, or who have maxed-out card balances. Needless to say, it doesn’t foster responsible spending habits. But a brand’s responsibility has never been to make sure people spend wisely (arguably, it’s the opposite).

And unlike layaway, “shop now, pay later” options allow people to get their purchases right away, before paying them off in installments. This has clear appeal for today’s impatient online consumers, who want their purchases in their hands as soon as possible.

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