Shoplazza partners with Klarna to speed up merchants’ globalisation

By Joy Dumasia

Shoplazza, a global SaaS platform and Klarna have reached a strategic partnership to provide various online payment options to Shoplazza’s 360,000+ merchants. This collaboration gives international customers more diverse and convenient payment options and better conversion rates for merchants to achieve business growth.

According to Baymard Institute, an independent web usability research institute, the average online shopping cart abandonment rate is 69.57%. Mobile users have an even higher abandonment rate of 85.65%, and alternative payment options such as Buy Now, Pay Later (BNPL) or interest-free instalments can lower the payment threshold for consumers, thereby reducing the abandonment rate at checkout.

Data shows that among young people aged 18-24, 25% choose BNPL, and only 3% go with credit cards, showing a shift away from high-cost credit card usage towards more flexible and interest-free options. It is foreseeable that the flexible payments represented by BNPL are leading the trend in the consumer world. As the leading SaaS platform, Shoplazza techs business and sales further from a single place and is a space that stays open to more tech, scalability, and eCommerce growth.

Established in Sweden in 2005, Klarna is the global leader in the generational shift away from credit cards, helping consumers save time and money, be informed, and control their finances. As a critical component, payment options link different parts of eCommerce, including purchasing, decision-making, order tracking, and more. A smooth and user-friendly payment experience improves the conversion rate and allows the entire brand and e-commerce ecosystem to get into a positive cycle.

Alyson Zhang, COO of Shoplazza, said: “With the development of cross-border eCommerce, the partnership between Shoplazza and Klarna will bring new opportunities for DTC brands going global. This joint effort by Shoplazza and Klarna will benefit the merchants, offer more appealing user-friendly options for consumers, and improve per customer transaction and repurchase rate, achieving global business success at a more stable and faster pace.” 

IBS Intelligence reported that Klarna announced closing a new $800m financing at a $6.7b post valuation. The financing attracted strong support from existing and new investors and will primarily be used to expand Klarna’s market position in the United States.