Ticketing platforms like Ticketmaster are always looking for ways to improve the ticket buying experience for customers. One area of focus is providing more flexible payment options. Klarna has emerged as a popular payment method that allows shoppers to pay for purchases in installments over time. This raises the question – can Ticketmaster integrate Klarna as a payment option for event tickets?
What is Klarna?
Klarna is a Swedish financial technology company that offers payment solutions for online stores. The core service provided by Klarna is allowing shoppers to pay for purchases in installments over time rather than upfront. There are a few different installment payment plans offered:
- Pay in 4 – Pay for your purchase in 4 interest-free payments over 6 weeks
- Pay in 3 – Pay for your purchase in 3 interest-free payments over 8 weeks
- Financing – Spread payments over 3-36 months with interest
Klarna handles everything related to the installment plans and payments. The merchant receives full payment upfront minus Klarna’s fees. This enables merchants to offer financing solutions without having to take on risk or operational costs. Klarna is used by over 250,000 merchants globally across verticals like retail, travel, education, and more.
Benefits of using Klarna
There are a few potential benefits if Ticketmaster were to offer Klarna as a payment option:
- Increased average order values – Installment plans allow customers to make larger purchases they couldn’t afford upfront.
- Improved conversion rates – More flexible payment terms lead more customers to complete purchases rather than abandon carts.
- Better customer experience – Installment payments are appreciated by customers and lead to higher satisfaction.
- Expanded customer base – Younger demographics are particularly fond of “buy now, pay later”type options.
- Faster payments – Merchants receive customer payments directly from Klarna quickly.
For high priced items like event tickets, installment payment plans are an attractive option for many consumers. Providing this could allow Ticketmaster to tap into a broader audience and enable larger average purchases.
Challenges for Ticketmaster to offer Klarna
While there are benefits, there are also a few potential challenges or drawbacks Ticketmaster would face in offering Klarna payment plans:
- Costs – Klarna charges merchants fees for providing installment plans. This would cut into Ticketmaster’s margins.
- Credit risk – There is financial risk if customers default on installment payments.
- Complexity – Integrating and managing a new payment method like Klarna involves development and operational work.
- Customer service – Ticketmaster would need to field customer questions and issues about Klarna payments.
- Refunds – Installment plans complicate the ticket refund process.
Ticketmaster would need to determine if the potential lift in customer conversion and order values outweighs the effort and risks of adding Klarna as a payment method.
How Ticketmaster could offer Klarna
If Ticketmaster decided to move forward with Klarna, there are a few ways they could integrate it as a payment option:
- Direct integration – Build direct access to Klarna’s API and payment flows into the Ticketmaster checkout flow. This provides the most seamless user experience but requires development work.
- Klarna widget – Use Klarna’s payment widget which can be added to sites with just a few lines of code. This is quick to implement but the user experience is less seamless.
- Hybrid approach – Build part of the integration natively while utilizing Klarna’s widget for the actual payment authorization component.
Ticketmaster would need to weigh the pros and cons of each approach based on their technology, resources, and user experience priorities. They may also run various tests to determine which approach delivers the best results.
Other platforms that offer Klarna
Many well-known merchants in the tickets and live entertainment space already offer Klarna as a payment method. For example:
Merchant | How they offer Klarna |
---|---|
StubHub | Fully integrated, pay in 4 installments |
SeatGeek | Fully integrated, pay in 4 installments |
Vivid Seats | Fully integrated, pay in 3 or 4 installments |
Fandango | Klarna widget during checkout |
The success other major ticketing merchants have found offering Klarna installment plans is a promising sign for Ticketmaster. It signals that customers are interested in using these payment options for event tickets.
Will Ticketmaster offer Klarna?
It is not a guarantee that Ticketmaster will add Klarna but there are a few signs pointing in that direction:
- Customer demand – Buy now, pay later models like Klarna are seeing massive growth based on consumer preferences.
- Competitive pressure – Other major ticketing merchants already offer Klarna, potentially taking market share from Ticketmaster.
- Past innovations – Ticketmaster has been innovative in payment options before, like offering bitcoin payments in partnership with PayPal.
The benefits appear to outweigh the downsides for a company like Ticketmaster. Offering flexible payment options like Klarna can attract high-value customers and lead to incremental sales. We may see Ticketmaster roll out installment plans powered by Klarna across their platform in the not too distant future.
Conclusion
Klarna provides a way for Ticketmaster to improve the ticket buying experience by letting customers pay for tickets in installments over time. While there are some costs and complexities involved, the customer acquisition and revenue upside make this an innovation worth pursuing. Given the competitive landscape and consumer demand, I would expect to see Ticketmaster offer Klarna as a payment method in the next 1-2 years.