A monthly invoice service for the always-on generation

By Johannah Albin Product Manager

Enjoying a movie together has been a family favourite pastime for generations, but it’s almost unthinkable now, and makes you feel so old to try and explain to your kids, that movie nights used to mean going to the local video store and actually getting the physical DVD in advance to watch together later at home.

After that came the internet revolution in home entertainment that was video on demand (VOD) which made things much more convenient – you could browse for a movie and then pay and download it without leaving the house. All good for the occasional movie night, but far from an experience you wanted to repeat over and over again? You had to repeat the same process and pay, sometimes awkwardly entering your credit card details with a TV remote, every time you wanted to watch a movie.  Luckily advances in streaming technology made is possible for the likes of Netflix to offer a wide selection of movies and series as a subscription service – excellent for any users who like to enjoy movies and series on a frequent basis, but don’t want to make payments with the same frequency.

For a regular online shopper the convenience of the purchase journey is of essence, and for the merchant the conversion rate is key. Get the balance right between those two and we have a win-win situation. This is an area where the payment by invoice solution has been a key enabler. However, what about the post-purchase experience? For a  frequent user a separate invoice for every purchase can feel like nagging, you know you need to pay but don’t need to be reminded all the time. In addition, the different communication channels and different due dates makes it tricky to get an overview.

Just as VOD services were increasing the convenience of watching movies at home, the Netflix streaming services really addressed the frequent users need with a hassle-free subscription service. Sign up once and for a monthly fee and get access to the content.

Pay later by Klarna has made online shopping smoooth. The Pay later concept of
try before you buy has facilitated the shift from in-store to online shopping. However, to take the Pay later experience to the next level we need to tackle the frequent user’s needs. Klarna is now launching a new feature for Pay later – the monthly invoice. (But unlike Netflix the amount you pay each month is based on the amount of shopping you have done, you control exactly how much you buy and pay).

A consumer with monthly invoice will get all their Pay later purchases made during a month collected on one invoice with one due date and one payment reference. This product is aimed at all consumers who like to shop online and with the Klarna card, without friction and with maximum safety. The consumers are always in control of their spending cost thanks to the Klarna app the post-purchase experience is taken to the next level by providing the consumer with full control and flexibility. Besides paying the monthly invoice with one click, the Klarna app lets consumers choose to pay or split the full monthly invoice, or individual transactions, into instalments.

Enabling the monthly invoice will require an active consumer choice which comes with an associated monthly fee of 29 SEK. The fee will, of course, only be charged in months when the consumer has made Pay later purchases.