Case Study: Do Deferred Payment Methods Encourage Users to Buy?

Research for this beauty retailer showed that their customers are very price-conscious and tend to look for the best price for the product they intended to buy.

In several of the successful experiments we’ve conducted in the past, delayed payment methods such as Klarna have shown to encourage price-driven users to complete transactions, especially when the products are not perceived to be cheap. Klarna allows customers to split the cost or pay later, giving them more flexibility in purchasing products even at the end of the month (before payday).

For the same retailer, an earlier experiment making Klarna payment options more prominent on the site had yielded positive results.

Customer research surveys had also shown that customers were more confident of purchasing when they saw affiliations with finance providers such as Klarna on retailers’ websites. It instils trust and customers are likely to pass on some of that trust to the retailers offering Klarna as well.

Hypothesis and Psychological Technique Applied

We believed that by increasing the prominence of Klarna, we will be able to increase conversions. Also, by promoting the ‘Pay in 30’ option of Klarna, users will be more likely to purchase at times when they normally wouldn’t.

This also uses the psychological effect of loss aversion, which suggests that users wouldn’t want to lose something they already have or perceive as having—in this case, a good offer that’ll be lost if they didn’t complete the transaction soon.

We proposed two Variations of this, to see if the way we frame the Klarna Pay in 30 messaging would make a difference to conversions.


For Variation 1, the messaging was: “Buy Now, Pay in 30 Days”.

For Variation 2, the messaging was: “Buy Now, Pay Next Month”.

Within the messaging box, we included:

  • A prominent (but not too large) Klarna logo
  • Trust messaging showing how many users and brands use and trust Klarna
  • A More Info modal which highlighted the benefits of paying with Klarna

Klarna trust A/B testVariation 1Klarna trust A/B testVariation 2Klarna trust A/B testThe More Info modal


From the observed data, we were able to see that Variation 2 showed a high probability of being better than the Control on mobile, delivering higher user conversions.


Interestingly, this experiment delivered higher conversions, but there was no significant increase in Klarna uptake or average order values. A hypothesis we can’t discount is that Klarna may have worked as social proof, instilling trust among users and creating for them the options of either paying using Klarna or just paying the total amount.

Our Clients