Klarna Payment method + Tutor LMS
We’re excited to join the journey with Fluent Cart! 🚀 We’re currently exploring how to best implement the integration with Tutor LMS and are also looking forward to seeing Klarna added to the list of available payment methods.
Congrats for that mate!
Do not hesitate to share your journey: I am sure it could be so inspiring!
About Klarna, for what I've seen, its already available (inside Stripe). Are you looking to integrate it separately?
As Jorge de los Reyes mentioned about Stripe, Klarna is integrated in Stripe. Now, we have not tested this in Fluent Cart yet since we use Surecart and the Pay What You Want option a lot in our business (which is lacking in Fluent Cart) but the Stripe / Klarna integration works with Stellar performance in Surecart for us. As soon as Shahjahan Jewel and team add the "Pay What You Can" functionality, we'll shift completely and test the Stripe Klarna integration fully.
Jacob Marinko “Pay what you want” is also a must for us!
Hopefully the team reads this.
For consultancy and many other types of services, it’s simply a very handy way to organize payments.
We’re in a very similar situation to you, @jacob - with the added challenge of EU e-invoicing compliance 🙂↕️
Thanks for sharing your insights about Klarna!
Any tips or best practices on using it?
We don’t usually offer third-party financing, but I’m curious: do you guys have any metrics on how many clients actually opt in?
Disclaimer - we have mainly Swedish Clients and Klarna is Swedish and basically has reached 100% trust adoption rate amongst the general public.
We use it for cash flow solution instead of "being the bank" for our high ticket coaching clients who wants to pay with installments.
In essence, we capture all of the cash directly up front against the Klarna Fee and the clients actually engage in a credit deal with Klarna instead.
But, we can see that our clients also use Klarna for low and medium tickets products.
Our High Ticket Sales usually comes with a 45-90 min sales call, and this is where we can handle the diversion to Klaran when "pricing discussion" comes up. Since Klarna can offer "Pay in Parts", "Pay over 3-18 months" it becomes a way for us to "catch the deal and the money" even if the clients can't afford to pay the full amount up front.
We use both methods, our own installments and Klarna depending on the clients.
New Clients -> generally always Klarna first time if not "known" through our network, recommendations or similar.
Existing Clients -> our own installments based on the knowledge we have of them, adding about 2% of revenue per deal.
But in times of low cash flow - we definitely "PITCH" Klarna as the main option.
Here in Sweden, there is an advantage to EVEN market Klarna Payment - that's the level of trust Klarna has here.
One also should understand Klarnas way of determining Credits. They determine your Creditability based on your Payment history to them.
This means if a client use Klarna and has a good track record they can, in spite of Low General Credit Rating, get "funded" by Klarna.
So using different payment options for us is a strategic choice.
Looking at our data the last 4 years, I'd say we've onboarded approx 85% of our New HT Clients with Klarna, and moved most of the recurring HT clients over time to our own installment or subscription solution only paying Stripe Fees.
Hope this is helpful!
One note to Shahjahan Jewel on "Pay What You Want"
We use this option for High Ticket Products and have ONE product we can re-use after setting our flexible pricing with the Client in the Sales Call.
All our coaching programs are individually adopted in some sense and clients pay different amounts. The "Enter Amount Option" with Surecart means we only need one Product for catching the money.
So it is highly useful when it comes to a sales process that is partly "manual".
But, we also use it to test pricing levels where we set a VALUE Price - a recommended Price and offer clients who are financially challenged to "Pay What They Want", especially in our "automated self-paced courses and programs.
Our experience here is that most clients pay a little more than they actually can. Most pay the "Recommended Price" or close to it, and some actually choose to pay more over time since they know the value we deliver is higher.
Jacob Marinko Thank you!
This is not just helpful but quite insightful!
We will definitely check Klarna closer!
Sorry for the inconvenience (I guess this must be on their docs), but, would you mind sharing:
1) Is there any limits on the HT amount? (Eg.: we usually have problems to get +10k tickets with stripe - due to their SEPA limit: in the end we get to surpass it, but it fails sometimes. On the other hand, many financial companies (at least here in Spain) usually just finance to <2k-3k max). That’s why it will be helpful to know if Klarna has any limits on this 😄: they are basically consumer oriented (consumer credit solutions).
2) Which % does Klarna take of the deal? 😄
Thank you!
Jorge de los Reyes our coaching clients are mainly small business owners or "consumers" so our initial HT's is around 3-5 K which usually works. I actually have no experiences at 10K credits for Klarna.
Maybe best to research on their "merchant" pages (keeping in mind it is basically a service for E-commerce and consumer markets...
In Sweden, a business owners, depending on company form, can usually "take the cost personally" and then book keep it as a "loan from owner" and with that little "hack" use company money to pay the personal invoice.
I think Klarna have different fees ranging from 3-6% and $0.30 flat fee based on country etc... But higher than Stripe and a cost we've accepted for the simplicity, security and cash flow support.
We've had 2,69% earlier but I think they increased the fees (have to check our deal :D)
You can of course DM if you wish, but what is your business?
Jacob Marinko Thanks a lot, Jacob: super useful details!
We’ll review it carefully, but honestly, we never looked into it in depth since we don’t really operate in B2C.
The main issue with these setups is that they’re technically consumer credit agreements, which can turn a simple service contract into one legally tied to consumer credit law.
In B2B, that creates a lot of headaches: under EU rules, for instance, if the consumer withdrawal rights aren’t properly disclosed (with timestamped proof and all), clients can claim refunds even up to 12 months later. Same goes for returns and compliance burdens: consumer protection adds layers that simply don’t exist in B2B.
In our case, it doesn’t affect us much since we work strictly business-to-business (legal and consultancy), though we’ve seen clients working with freelancers trying to “act as consumers” when things go wrong: and that can get messy (eg.: with HT of 2-3k and tons of refunds of coaching programs).
If Klarna is positioned mainly as a consumer credit entity (not sure), we’ll probably leave it aside 😅: though it might still make sense for our e-learning side if we decide to work B2C.
Thanks again for sharing your insights and numbers! 👏
Jorge de los Reyes yes, the legal navigation is always the first to actually understand before implementing the ”right” thing in the ”wrong” way.
Can quickly add unforseen headaches and cost making you curse your own ”smartness” before the fact…
Done that a few times 😂
Jacob Marinko hahaha glad to see you know the game mate!
We all are always learning! 😄
Thanks again for sharing your insights!