How to Sell to Millennials with Klarna: Buy Now, Pay Later
How to Sell to Millennials with Klarna: Buy Now, Pay Later

Millennials or Generation Y is a demographic that every brand wants to charm but even the most seasoned marketers find it hard to earn the trust.
When it comes to selling to millennials, businesses complain that the usual marketing techniques and strategies that worked on boomers and generation x don’t seem to work on millennials. Moreover, the millennials generation has a bad reputation for no brand loyalty and skepticism. So, many businesses don’t focus much on millennials as they focus on the older generations.
But time is passing. Boomers are entering retirement and it has become crucial for businesses to shift their focus more to the millennial generation.
Millennials have recently surpassed baby boomers as the largest living generation in the US and the same is about to happen in the UK pretty soon. So, it is important for you to learn how to sell to millennials if you don’t want your eCommerce business to tremble in the future.
Those who are not focusing on millennials are missing out on a huge potential to increase their sales and revenue. In this blog, we talk about how to sell more to millennials by utilizing the “buy now pay later” service offered by banking companies like Klarna. This will help you to improve the overall sales, average order value, and the repeat purchase rate drastically.
What is Klarna?
Klarna is a banking and financial service provider based in Sweden. It was established in 2005 and currently offers its services in the UK, US, Australia, and many other countries.
It offers point-of-sale financing services to consumers to purchase products online. For customers, it works the same as a credit card except you can avail Klarna credit even if you are not qualified for a credit card.
Consumers have three payment options in the online stores that offer Klarna financing services.
- Pay in 30 days: This “try before you buy” method gives a buffer period of 30 days to the customers to pay the amount. Customers can also return the product within 30 days if they don’t like the product.
- Financing: Klarna offers loans to buy products from online stores and pay it back on a monthly installment basis over 3 to 36 months.
- Installment: Interest-free financing with four installment payments. The first covers 25% of the total amount and is charged to the credit card or debit card. The remaining three installments are charged automatically every two weeks.
Klarna gives credit to consumers and pays the entire amount upfront to the online store. So, it’s a win-win for both the buyers and the sellers.
How does Klarna help you to sell more to millennials
Due to various reasons, the number of millennials using credit cards is less compared to baby boomers or generation X. So, most of them can’t make use of the credit system to buy the products by deferring the payment.
But Klarna makes it possible. It allows customers with no credit cards to purchase products on a credit basis. It offers a huge opportunity for online sellers who want to sell more to the millennials. So, by signing up for the Klarna Retail Partner program, you can offer easy financing services to those who don’t have a credit card and increase the sales drastically.
Klarna gives the benefits of a credit card
People with credit cards can buy products on credit. But if you don’t have a credit card, it is not that easy to buy a product and defer the payment.
Klarna solves this problem. It allows customers to purchase products on credit even if they don’t have a credit card.
Moreover, it’s easier for customers to qualify for Klarna compared to credit cards. So, if you are a Klarna Retail Partner, you can attract customers who don’t have the money to buy the product by allowing them to pay the amount later. This way, you can improve your sales.
No interest and no fee
Klarna doesn’t charge interest or fee if the amount is paid within 30 days. This takes away the worry of the additional amounts for buying things on credit.
Klarna doesn’t charge interest or fee if the amount is paid within 30 days. This takes away the worry of the additional amounts for buying things on credit.
Offer try before buy option
Klarna allows buyers to return the product within 30 days if they don’t like it. This gives more confidence to the buyers because they are sure that they won’t lose the money if they don’t like the product. This gives more confidence to the buyers to make the purchase which naturally increases the sales.
Offer buyer protection
Klarna offers a buyer protection policy. It gives more confidence to the buyers because they don’t have to worry about losing the money if the products are defective or arrive damaged. It increases the confidence of the buyers which leads to the overall increases in sales.
Summary
Klarna is a great platform for both consumers and online stores. While allowing customers who don’t qualify for credit cards to buy products on credit, Klarna also increases the confidence in buyers with features like buyer protection, try before buy, and zero-interest. It will allow consumers, especially the millennial generation which has the lowest rate of credit card usage compared to boomers and generation X, to buy products on credit even if they don’t have a credit card. It makes Klarna a very effective tool to sell more to the millennials.