Using Apple Pay and Google Pay with Spektrix Payments, customers can use Buy Now Pay Later (BNPL) instalment plans to split the cost of an Order.
This article explains how to use Klarna with Apple Pay and Google Pay for organisations on Spektrix Payments. All Buy Now Pay Later providers listed in this article work in the same way.
What is Buy Now Pay Later?
Buy Now, Pay Later (BNPL) is a short-term finance option that enables your customers to make a purchase and spread the payment over a set number of instalments. When a purchase is made using BNPL, you’ll receive the full purchase amount upfront, minus any fees.
Fees include:
- Spektrix Payments fees
- Card Scheme fees
TIP: To be eligible to use any Buy Now Pay Later scheme, a customer must be at least 18 years old and hold a valid credit or debit card.
Buy Now Pay Later providers offer flexible ways to pay, for example Pay in 3, Pay in 4, Pay in 30 days. These instalment plans are usually interest-free. Instalment plans over 6 months are usually subject to interest charges. Take a look at Klarna’s frequently asked questions for more information.
Requirements for offering Buy Now Pay Later
Buy Now Pay Later is only available with Apple Pay and Google Pay for organisations using Spektrix Payments.
If you’re not currently using Spektrix Payments, take a look at the following articles:
Which Buy Now Pay Later providers are available?
The Buy Now Pay Later providers available depend on your location and the digital wallet used:
Customers can use Klarna depending on their Order total and location:
In the UK Klarna will be available for orders over £1. The primary instalment plan is usually Pay in 3.
In the US and Canada: Klarna will be available for orders over $35. The primary instalment plan is usually Pay in 4.
REMINDER: This article explains how to use Klarna with Apple Pay and Google Pay. All Buy Now Pay Later providers listed above work in the same way.
How do I set up Buy Now Pay Later?
Buy Now Pay Later is already integrated with Apple Pay and Google Pay through Spektrix Payments, therefore no set up is required.
Using Klarna with Apple Pay
The payment process differs depending on whether a purchase is made online or in-person.
Apple Pay customers who have a Klarna account can access Klarna instalments via a virtual Klarna card stored in their Apple Wallet.
TIP: New Klarna customers will need to be verified by Klarna. Once approved, the virtual card details are used to make the payment.
Online and in-app checkout
To use Klarna during online checkout, the customer must first create a virtual Klarna card within the Klarna app and save this card to their Apple Wallet.
On your website, during checkout, the customer chooses to pay by Apple Pay. They select their stored virtual Klarna card under Other Cards & Pay Later Options:
The transaction is then authenticated using FaceID or TouchID.
In Spektrix, you can see the Order has been paid with the virtual Klarna card.
TIP: Instalment plan payments are automatically taken from the customer’s card or bank account registered to their Klarna account.
In-person using Contactless/Tap to Pay
Klarna’s integration with Apple Pay enables customers to use their virtual Klarna card for Contactless / Tap to Pay transactions.
During checkout, the customer experience is as follows:
- The customer holds their device near the card reader to make a payment
- The customer double-clicks the side button on their iPhone or Apple Watch to open their Apple Wallet using FaceID or TouchID to authenticate
- The customer selects their stored virtual Klarna card
- On the customer’s device, they select the payment plan and follow the steps in the wallet to complete the purchase
In Spektrix, you can see the Order has been paid using the virtual Klarna card.
TIP: Instalment plan payments are automatically taken from the customer’s card or bank account registered to their Klarna account.
Using Klarna with Google Pay
Google and Klarna have partnered to make Buy Now Pay Later available through Google Pay (UK and US) and by using Chrome Desktop Autofill (US only).
REMINDER: New Klarna customers will need to be verified by Klarna. Once approved, the virtual card details can be used to make the payment.
TIP: Klarna with Google Pay is only available in the UK and US.
Online checkout
During checkout, the customer experience is as follows:
- On your website, the customer chooses to pay with Google Pay
- The customer will be prompted to authenticate using face or fingerprint recognition
-
In Google Pay, the customer taps Pay later > Continue with Klarna:
- A single use virtual Klarna card is generated to use for the purchase
- The customer taps Continue with Klarna to confirm the plan and complete the transaction
In Spektrix, you can see the Order you will see the fully has been paid Order using the virtual Klarna card.
TIP: Instalment plan payments are automatically taken from the customer’s card or bank account registered to their Klarna account.
Chrome Desktop Autofill (US only)
Chrome Desktop Autofill is available to users in the US only.
BNPL providers may appear in the payment autofill when a customer makes a purchase on a computer using the Google Chrome browser.
Once Klarna is selected, Google Chrome will generate a virtual Klarna card and populate the payment fields with these details.
In Spektrix, you will see the Order as paid using the virtual Klarna card.
TIP: Instalment plan payments are automatically taken from the customer’s card or bank account added to their Klarna account.
Buy Now Pay Later Considerations
Klarna’s integration through digital wallets can provide financial and operational advantages by streamlining costs and processes.
- Liability shift: As transactions are authenticated using face or fingerprint biometrics, fraud liability shifts from your organisation to the issuer (in this example, Klarna).
- Instant Payment: As you’ll receive full payment upfront (minus any fees), you don’t need to worry about customer non-payment. This reduces the risk of customer non-payment as Klarna and other BNPL providers take on this risk.
- Interchange fees: As Klarna and other BNPL providers use a virtual Visa credit card, your standard credit card transaction rate will apply. No additional BNPL specific contracts are required.
- Customer fees: Before a purchase is confirmed, customers may be required to pay a small fee to use their chosen BNPL option.
Buy Now Pay Later Returns and Refunds
When refunding a Buy Now Pay Later transaction, you’ll need to refund the payment back to the virtual Visa card used to pay for the Order. You can process the refund in the usual way.
The funds will be sent back to Klarna. Once Klarna receives the funds, they will:
- Full refund: Issue a full refund
- Partial refund: Automatically update the customer’s instalment plan to reflect the new Order total
If a customer has a question about a refund or instalment plan, ask them to contact Klarna support through the Klarna app.
Buy Now Pay Later Disputes and Chargebacks
Buy Now Pay Later Disputes or Chargebacks follow the standard Dispute / Chargeback procedure through Spektrix Payments.
REMINDER: As transactions are authenticated using face or fingerprint biometrics, fraud liability shifts from your organisation to the issuer (in this example, Klarna).
When a customer contacts Klarna to dispute a transaction, Klarna will pause the customer’s instalment plan and initiate a Visa Chargeback through the card network.
To defend the Dispute / Chargeback and learn more about the process, take a look at the following articles: