Etsy is the world’s favorite online marketplace for all things vintage and handmade. T
he platform boasts over 90 million active buyers and 4.4 million active sellers.
You’ve seen a stunning piece of handmade jewelry on Esty but you can’t afford it. Not now. Not in one go.
As your heart sinks, you remember about Afterpay – Buy Now Pay Later financing app. Maybe you can use Afterpay to buy this item that you desire but can’t afford right now.
Does Esty Accept Afterpay?
No, Etsy does not accept Afterpay for anything it sells on the platform. So, if you want to buy a high-priced item and pay it off over a few weeks, you can’t use Afterpay to do it.
But don’t stress, there are other ways to afford expensive items on Etsy. The online store accepts a few alternative payment methods.
What about alternative payment options?
Yes, Etsy does accept alternative payment options, but it doesn’t accept Afterpay.
If you have become used to Afterpay for purchases you can’t afford right now, but need right now, you might be wondering if there are alternatives to Afterpay.
And if you are a regular Etsy customer, you may be wondering if Esty offers any of them.
And the happy answer is yes, Etsy welcomes payments in installments. Etsy accepts Klarna and Zip (previously Quad pay) to help consumers pay for big-ticket items.
Quad pay also splits the amount you must pay into four equal portions and deduct them from your preferred card. Etsy customers can also use gift cards to pay for purchases.
What are Afterpay, Zip, and Klarna and why are they so popular?
Afterpay, Zip, and Klarna are Buy Now Pay Later (BNPL) solutions that took off during the pandemic when more people started shopping online.
The popularity of BNPLs keeps soaring after the pandemic and the subsequent poor economy as many consumers are struggling to afford what they need.
BNPL solutions help them to do that by splitting their purchases into equal installments over regular intervals.
Fortunately, Afterpay is not the only BNPL solution. If you like to shop on Etsy, you will be happy to know that the platform offers alternative payment options.
In fact, you can pay for your purchases on Etsy with Klarna and Zip.
Klarna is a global payment and shopping service that provides smarter and more flexible shopping and purchase experiences for more than 150 million consumers served by more than 500,000 merchants in 45 countries.
Klarna is a BNPL solution primarily designed for online shopping but is now also accepted for making payments in person as well.
You can use the Klarna mobile app to shop online or you can choose Klarna as your payment option at the checkout. With Klarna, you pay no interest.
Other Klarna options include direct payments, pay-after-delivery as well as installment plans.
Klarna was founded in 2005 in Stockholm, Sweden. According to the company’s website, Klarna has
- 150,000,000 consumers
- 500,000+ merchants
- 2,000,000 transactions per day
- 5,000+ employees
Does Etsy Accept BNPL Payment Options?
Etsy won’t accept Afterpay, but you can make a payment using Klarna. Etsy has partnered with Klarna to offer buyers shopping for high-ticket items the option to pay in installments.
The buyer must be 18 or older to benefit from Klarna.
You can download the app and create an account to start shopping. You can also utilize the Chrome extension which allows Klarna payments at participating online stores, like Etsy.
Once you download the app, you can choose it at the Etsy checkout. You can also create a virtual Klarna card via the app and use it in online or offline stores.
There is no charge to sign up, and the company does not do a hard credit check; it will perform a soft credit check, which doesn’t affect your credit score.
When you pay for items on Etsy with this method you can use Klarna’s “Pay in 4” service free of interest.
This payment option allows you to pay for your purchase in four equal installments.
For example, if your purchase costs $400, you would pay $100 at the checkout. The three remaining $100 payments would be charged to your debit or credit card at two-week intervals until you’ve paid the full $400.
Etsy allows payments with Klarna only if the Etsy seller is registered for Etsy Payments.
Is There a Limit on the Amount You Can Spend?
No, there is no limit to what you can spend. However, the service makes an automated approval decision every time a buyer uses it.
The decision is based on a buyer’s
- Klarna payment history
- The outstanding balance
- The amount of the present purchase
- The company’s ability to identify the shopper
What happens if you can’t pay the full amount in time?
The installments you make are interest-free, but you will have to pay a late fee when your payment is 10 days overdue.
You will have to pay $7 or 25% of the installment, whichever amount is the smallest.
If you keep missing or delaying your payments, your account will be suspended.
How Secure Are These Payment Methods?
You need not worry when you pay for your goods on Etsy via Klarna – the company has a buyer protection policy. This is a safe payment method. It requires all Klarna merchants to be verified, so in case something goes wrong, the buyer gets their money back.
A buyer can claim a refund if:
- The goods did not arrive
- The wrong goods arrived
- There’s something wrong with the goods
If you have a claim, you can simply lodge it with Klarna customer care.
Countries where Etsy accepts Klarna
Customers with a billing address in Australia, Spain, the United Kingdom, or the United States may pay for certain items with Klarna.
Etsy buyers in Germany, Netherlands, Sweden, Austria, Switzerland, Denmark, Finland, and Norway have the option to buy items and pay for them over 30 days.
This service is called Klarna Pay in 30 days. Klarna is available in 45 countries.
Benefits of BNPL for Consumers
BNPL solutions like Klarna offer several benefits to consumers. Here are some of them:
- Customers get the flexibility to purchase items they need or want without having to pay the whole amount upfront.
- Young consumers who have not built up any credit and don’t have much disposable income can afford to shop for things they need. Research by LendingTree shows that Gen Zers (18 – 25 year-olds) use BNPL the most in the US.
- You get the option to spread the cost over several weeks or months.
- With Klarna, you pay no interest.
- You can avoid high-interest credit card debt.
- Klarna performs a soft credit check when you apply for its BNPL options which will not affect your credit score.
- Financing for large purchases using Klarna is likely to be cheaper than getting a personal loan.
- You can use Klarna for online and in-person purchases.
Benefits of BNPL Solutions for Stores
- Increasing sales by allowing people to buy products more easily.
- Staying competitive by offering more flexible ways to pay.
- Attracting new customers who prefer to pay in installments.
- Enabling an affordable financing solution without interest.
- Decreasing cart abandonment by not requiring the full amount at checkout.
- Increasing customer lifetime value by encouraging repeat purchases and loyalty.
Check our article Does Etsy take PayPal
Etsy Won’t Accept Afterpay But Be careful
Afterpay is not a valid payment on Etsy, but you can use other BNPL services to pay for your purchases over time. But are you sure that this is sound financial practice?
BNPL services encourage people to spend more than they can afford because they don’t have to pay the full amount immediately.
Also, if you don’t manage to make your payments on time, you could be liable for high-interest rates that can dump you into debt.
It’s important to remember that BNPL is a form of credit, and as such, must be used responsibly. Stay a happy Etsy shopper with sound financial decisions. Use BNPL with care.
