There’s no more doubting that the permanent switch to online shopping is here to stay… Sorry, brick and mortar!

The global shifts of the last few years sped up a process that was already in motion, and eCommerce businesses came out on top. But as we navigate 2026, we cannot ignore the harsh reality: more online shopping means drastically more competition. This saturation leads directly to rising ad costs and lower conversion rates because consumers know they have a million options for a single purchase.

So, how do you compete?

You win your customers by making it entirely frictionless for them to buy from you. No stress, no complicated checkout process, no last-minute hesitation.

How do you make it so easy that there’s absolutely no reason for them to back out? You don’t make them pay for your product all at once!

Embrace the buy now pay later transformation.

What is Buy Now, Pay Later (BNPL)?

Instead of forcing your customer to cover the purchase upfront, a BNPL service allows them to break the total cost into manageable installments.

Klarna is a leading payment method that allows your customers to make four payments (often called pay in 4) on your higher-ticket items, completely interest-free. Alternatively, Klarna allows your customers to defer the entire transaction by 30 days, allowing them to pay nothing at checkout.

Instead of draining their bank account for a $200 product immediately, they can make a $50 down payment today, and then automatically cover the remaining four installments over the next six weeks until the item is fully paid off.

5 Reasons You Need to Use Klarna in Your Funnels ASAP

There are various flexible payment options out there — like PayPal Credit or traditional personal loans — but Klarna stands out. Here are the five main reasons your online business needs to integrate this later company immediately.

1. Increase Conversions and Average Order Value (AOV)

Klarna has been proven to increase conversions and average order values by upwards of 30-40%.

When breaking a large purchase amount into a smaller installment plan, your customers feel an increase in their purchasing power. They are much more likely to complete the online purchase, and more importantly, they are more likely to buy expensive bundles or one-click upsells! When you offer split payments, a $500 order suddenly just looks like a $125 first installment, making larger purchases feel entirely affordable.

2. Reduce Abandoned Carts

Nothing kills an ecommerce store faster than abandoned carts. Using Klarna helps fix this because the ability to utilize installment payments makes the full cost seem far less intimidating.

If a buyer doesn't have enough money until payday, they will abandon the cart. But paying $50 today instead of $200 for something they really want feels like a highly responsible buying decision, even though they are still paying the same amount over time. Easier payment options mean fewer abandoned carts. It’s that simple!

3. Increases Trust in Your Brand

Massive companies such as Macy’s, Adidas, Sephora, and hundreds of thousands of other brands use Klarna. This means Klarna has massive brand recognition among shoppers, both in store and on online stores.

When your funnel chooses to use such a well-known and trusted processor alongside traditional credit cards, you automatically gain the trust of your customers. They see the Klarna logo and know their money and data are safe.

4. It’s Becoming the Preferred Way to Pay

The buy now pay later method is growing faster than any other financial tool. Preferred by the majority of modern shoppers, relying solely on old-school credit card processors is leaving money on the table.

Consumers are tired of carrying a high credit card balance and paying ridiculous interest charges. Later apps provide a transparent repayment plan without the predatory loan terms of traditional finance. Not having a pay later option actively hurts your sales.

5. Low Transaction Fees and Unmatched Benefits

There are different tools out there, but with over 90 MILLION global shoppers using Klarna, it’s the definitive leader.

For the merchant, Klarna has no additional fees beyond the standard transaction fee, which varies from 1.99% to 2.49% depending on your location. Furthermore, Klarna absorbs the risk. You get paid upfront, and Klarna handles the collection of the loan amounts.

How BNPL Benefits the Consumer (The Mechanics)

To truly market this to your audience, you need to understand how repayment options work on the customer’s side.

• Application process: It is incredibly fast. Unlike traditional installment loans, there is no lengthy paperwork.

• Credit checks: Typically, Klarna only performs a soft credit check to verify identity and assess risk. A hard credit check (which requires a deeper dive and can lower a score) is rarely needed for basic pay in 4 services. This means applying won't negatively impact their credit score. (Note: For longer, higher-value financing, a standard credit check required by law may apply).

• No hidden fees: As long as the account is in good standing, there are no hidden tricks. Customers connect a debit card for automatic payments.

• Late policies: While Klarna offers interest free payments, they do enforce late fees if there are missed payments. Continual late payments or defaulting on the loan can eventually be reported to credit bureaus. Conversely, making every monthly payment on time can help establish a track record that may positively impact their financial habits.

• Ecosystem: Shoppers can track their repayment terms, manage their payments, generate a virtual card for non-partnered stores, and even earn rewards directly inside the Klarna app.

(Legal Note: Depending on the region, some long-term later loans are arranged pursuant to specific state or regional lending laws, and platforms may charge interest on those specific long-term loan formats. However, the standard split-pay feature remains free for the consumer).

Now Introducing… Funnelish + Klarna!

We are thrilled to announce that Klarna is fully integrated and available as a payment method in your Funnelish funnels! You no longer have to rely solely on customers paying the full amount today. You can offer a massive upgrade to your service with just a few clicks.

How to connect Klarna to your funnels:

1. Head to your Funnelish Pay app inside of your funnel settings.

2. Click to add a new payment method, and then select Buy Now, Pay Later.

3. Once you click Connect, you’ll be routed securely to your Klarna account (often facilitated through Stripe) to log in.

4. Once logged in and verified, you’ll be automatically redirected back to Funnelish.

Boom. Now you’re connected to Klarna!

Simply edit the settings in your account to configure your key features and ensure that the currency in your funnel perfectly matches the currency and country set up for the product in Klarna.

Stop forcing your customers to make agonizing financial decisions at checkout. Give them the freedom to use credit smartly, avoid high minimum payments from their banks, and choose a pay monthly or weekly schedule that fits their lifestyle.

Now sit back, drive your traffic, and watch your conversions and average order value skyrocket!

P.S. Don’t have Funnelish yet? Let's be honest, you are losing money to clunky, outdated ecommerce stores. Get started today to utilize high-converting funnel templates, integrate Klarna seamlessly, and aggressively scale your online business!