Ecommerce - Buy Now Pay Later Options - Klarna etc
Discussion
We sell high value products on our websites which we feel would benefit from some sort of finance payment option in the checkout process.
Does anyone have any experience with instant online finance payment options for ecommerce websites? Previously looked at Pay4Later but was put off by the setup fees but not so much of an issue now.
Currently looking at Klarna which looks fairly simple and hassle free. What sort of costs are involved? Guessing a setup, monthly and per payment fee?
We have in-house developers, so integration isn't an issue, just looking for a solid solution with reasonable costs which compare well to our normal transaction fees.
Does anyone have any experience with instant online finance payment options for ecommerce websites? Previously looked at Pay4Later but was put off by the setup fees but not so much of an issue now.
Currently looking at Klarna which looks fairly simple and hassle free. What sort of costs are involved? Guessing a setup, monthly and per payment fee?
We have in-house developers, so integration isn't an issue, just looking for a solid solution with reasonable costs which compare well to our normal transaction fees.
Seems these guys seem to be shaking up the market a bit and pretty competitive I know a couple of people who have switched to them.
https://dividebuy.co.uk/
https://dividebuy.co.uk/
Looked into DivideBuy and don't think it's suitable for us.
When a customer clicks the "Pay with finance" button on a product page, they're redirected to a subdomain of dividebuy.co.uk (e.g yourwebsite.dividebuy.co.uk) quite far up the buying process.
The customer then has to reconfirm any options they selected with the product on your website (befoe being redirected) and complete the transaction on the DivideBuy website.
Very clunky and not a great customer experience, will be surprised if this takes off.
When a customer clicks the "Pay with finance" button on a product page, they're redirected to a subdomain of dividebuy.co.uk (e.g yourwebsite.dividebuy.co.uk) quite far up the buying process.
The customer then has to reconfirm any options they selected with the product on your website (befoe being redirected) and complete the transaction on the DivideBuy website.
Very clunky and not a great customer experience, will be surprised if this takes off.
tvr_rich said:
Looked into DivideBuy and don't think it's suitable for us.
When a customer clicks the "Pay with finance" button on a product page, they're redirected to a subdomain of dividebuy.co.uk (e.g yourwebsite.dividebuy.co.uk) quite far up the buying process.
The customer then has to reconfirm any options they selected with the product on your website (befoe being redirected) and complete the transaction on the DivideBuy website.
Very clunky and not a great customer experience, will be surprised if this takes off.
Was that on a site they showed you as I have seen the order data carried over. When a customer clicks the "Pay with finance" button on a product page, they're redirected to a subdomain of dividebuy.co.uk (e.g yourwebsite.dividebuy.co.uk) quite far up the buying process.
The customer then has to reconfirm any options they selected with the product on your website (befoe being redirected) and complete the transaction on the DivideBuy website.
Very clunky and not a great customer experience, will be surprised if this takes off.
We use Klarna. Not everyone will get the payment after delivery option, but I think we're running at around 70% in terms of who does get offered it.
Overall a decent solution. Not the best rates, but the theory is that checkout conversion increases - more than offsetting the additional processing costs. Jury still out as to whether this is the case as tracking checkout conversion specifically is a fine art!
Any other questions, feel free to PM me.
Overall a decent solution. Not the best rates, but the theory is that checkout conversion increases - more than offsetting the additional processing costs. Jury still out as to whether this is the case as tracking checkout conversion specifically is a fine art!
Any other questions, feel free to PM me.
How you getting on with this OP?
I need to set this up to.
Anyone heard of V12 Retail Finance?
https://www.v12retailfinance.com/
Ive noticed two websites that where previously using Pay for Later are now using V12.
oh, and the first step is to get our own consumer credit license right?
I need to set this up to.
Anyone heard of V12 Retail Finance?
https://www.v12retailfinance.com/
Ive noticed two websites that where previously using Pay for Later are now using V12.
oh, and the first step is to get our own consumer credit license right?
Edited by AnimalMother on Friday 3rd March 16:35
AnimalMother said:
How you getting on with this OP?
I need to set this up to.
Anyone heard of V12 Retail Finance?
https://www.v12retailfinance.com/
Ive noticed two websites that where previously using Pay for Later are now using V12.
oh, and the first step is to get our own consumer credit license right?
I've got a client that uses them, and is pretty pleased. I need to set this up to.
Anyone heard of V12 Retail Finance?
https://www.v12retailfinance.com/
Ive noticed two websites that where previously using Pay for Later are now using V12.
oh, and the first step is to get our own consumer credit license right?
Edited by AnimalMother on Friday 3rd March 16:35
They seem to offer finance for a lot of the bike retailers from memory. Worth checking them out.
Bringing this thread back.
Been in contact with v12, pay4later and dividebuy
We dont want to subsidise the interest rate at all, as some high value items we sell dont have much margin. Which rules out dividebuy as they only do 0% to consumer with us paying a 12% merchant subsidy. V12 want merchant subsidy even when the customers is paying 15.9%.
So pay4later seam the best suited with a 14.9% apr with no merchant subsidy.
However, the cost of getting going is hard to judge on ROI, £1000 for consumer credit license last time I checked, £500 setup with pay4later, £300 for Magento extension last time I checked and then £45 a month on going sub fee to pay4later.
All fine if it can actually raise our sales, even by 10% would be a decent ROI. But its a decent wack to waste if there is little take up of it.
Anyone comment on there own experience of going live with this sort of finance?
Been in contact with v12, pay4later and dividebuy
We dont want to subsidise the interest rate at all, as some high value items we sell dont have much margin. Which rules out dividebuy as they only do 0% to consumer with us paying a 12% merchant subsidy. V12 want merchant subsidy even when the customers is paying 15.9%.
So pay4later seam the best suited with a 14.9% apr with no merchant subsidy.
However, the cost of getting going is hard to judge on ROI, £1000 for consumer credit license last time I checked, £500 setup with pay4later, £300 for Magento extension last time I checked and then £45 a month on going sub fee to pay4later.
All fine if it can actually raise our sales, even by 10% would be a decent ROI. But its a decent wack to waste if there is little take up of it.
Anyone comment on there own experience of going live with this sort of finance?
AnimalMother said:
Bringing this thread back.
Been in contact with v12, pay4later and dividebuy
We dont want to subsidise the interest rate at all, as some high value items we sell dont have much margin. Which rules out dividebuy as they only do 0% to consumer with us paying a 12% merchant subsidy. V12 want merchant subsidy even when the customers is paying 15.9%.
So pay4later seam the best suited with a 14.9% apr with no merchant subsidy.
However, the cost of getting going is hard to judge on ROI, £1000 for consumer credit license last time I checked, £500 setup with pay4later, £300 for Magento extension last time I checked and then £45 a month on going sub fee to pay4later.
All fine if it can actually raise our sales, even by 10% would be a decent ROI. But its a decent wack to waste if there is little take up of it.
Anyone comment on there own experience of going live with this sort of finance?
What is the nature of the products, and how small is the margin? Been in contact with v12, pay4later and dividebuy
We dont want to subsidise the interest rate at all, as some high value items we sell dont have much margin. Which rules out dividebuy as they only do 0% to consumer with us paying a 12% merchant subsidy. V12 want merchant subsidy even when the customers is paying 15.9%.
So pay4later seam the best suited with a 14.9% apr with no merchant subsidy.
However, the cost of getting going is hard to judge on ROI, £1000 for consumer credit license last time I checked, £500 setup with pay4later, £300 for Magento extension last time I checked and then £45 a month on going sub fee to pay4later.
All fine if it can actually raise our sales, even by 10% would be a decent ROI. But its a decent wack to waste if there is little take up of it.
Anyone comment on there own experience of going live with this sort of finance?
Given the seemingly endless choice of 0% credit cards and cheap loans, I can't imagine many would would be tempted by a 15% finance option.
Obviously it depends on the market and the product, but generally it's the 0% finance stuff that is popular at the moment, with the retailer contributing the interest as a cost of selling the item (rather than offering discount for example). Advantages are obviously encouraging new customers, along with potential to increase average order values.
We recently looked into this and found that a quarter of retailers plan to offer buy now, pay later by 2019, and Klarna are indeed the top dogs in this game.
https://www.khaoscloud.com/buy-now-pay-later-what-...
https://www.khaoscloud.com/buy-now-pay-later-what-...
I have been with Omni finance for about three years and not really had any problems but they seem to be stuck in the past where as other companies are moving ahead. We dont pay any monthly fees which is good if you are wanting to try with minimal fees.
We are now in the process of moving to Divido who seem to off much more including buy now pay later which we have set at 6 months with a sub rate of 2.5% so not too bad as its essentially 6 months 0% finance for 2.5%. Other than that their rates are much better than Omni finance.
Here is a link: https://www.divido.com/features
Joe is the rep I have been dealing with and I have been happy with the service so far.
We are now in the process of moving to Divido who seem to off much more including buy now pay later which we have set at 6 months with a sub rate of 2.5% so not too bad as its essentially 6 months 0% finance for 2.5%. Other than that their rates are much better than Omni finance.
Here is a link: https://www.divido.com/features
Joe is the rep I have been dealing with and I have been happy with the service so far.
Gassing Station | Business | Top of Page | What's New | My Stuff