I mean cmon, you’re literally delaying payment for a long time. How does that benefit any business?
In: 29
E-commerce retailer here.
It allows a lot of people to spread the cost over time which means they can buy today instead of 2-3 months’ time. This gets more sales for us as they can buy on impulse and don’t have to save up, of which they will less likely do as they will spend it on other things.
For us, the cost is about double. Normally we are charged 2% transaction rate by the payment processors. These services charge us 3-5%. It is worth it for that extra few % as we probably would not have gotten that sale without that service. Granted many people do it now because they can. I for one will use Klarna sometimes even though I have 10-100x the cost of the item in the bank account.
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