Etsy Integration with Klarna

Etsy to Accept Buy Now, Pay Later Solution Klarna on US Marketplace

Etsy says sometimes shoppers want to splurge a little, especially on an extra special gift during the holiday season—and a little more flexibility can help shoppers afford their dream.

In the United States, Etsy will launch Buy Now, Pay Later solution Klarna at checkout, enabling shoppers to split their purchase into multiple installments with zero interest if the order is between $50 and $250.

Sellers will receive their funds for orders made with Klarna in their payment account the same as for other payment methods on Etsy. Shoppers get more flexibility, while sellers won’t have to wait any longer for funds.

Etsy’s installment program with Klarna makes shopping on the site even easier for buyers and drives conversion for sellers. It is especially perfect for people shopping for big, celebratory investments, such as jewelry for an anniversary or furniture and home goods for a new home.

Etsy Klarna
Source: Etsy

How Klarna Works on Etsy

Klarna is shown as a payment option on US-based Etsy shops that have Etsy Payments enabled and meet the $50 minimum threshold. Shoppers will be able to share all their details with Klarna during checkout and do not need to pre-register to use this payment option.

Etsy Klarna
Source: Etsy

For Etsy sellers, accepting payments through Klarna works the same way as any of Etsy’s other payment options. The total funds for the order will be sent to the seller’s payment account (minus any taxes and fees) and will be ready for deposit on your schedule.

Best of all, there are no additional fees for sellers when a shopper pays with Klarna, just Etsy’s standard payment processing fee. In the Shop Manager, orders paid with Klarna will look like all other orders.

Etsy Klarna
Source: Etsy

Klarna is available for shoppers in the US that purchased items on Etsy in one transaction between $50 and $10,000*. Only orders under $250 are eligible for 4 interest-free installments every two weeks.

Orders over $250, will use Klarna Financing which is a 6, 12, 18, 24, or 36 month payment schedule with interest as determined through Klarna’s assessment of a buyer’s ability to complete the installment schedule offered. Important additional details for US buyers are available on Etsy’s website.

Etsy plans to expand the service to more countries next year which is currently available in the US, UK, Germany, Spain, and Australia with every country having specific Klarna terms.

Note: Post last updated on 11/22/2021 to reflect updates of the Klarna program on Etsy for US buyers.

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Editorial Note: This post is from a Company Press Release and may have been modified for clarity.

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