For Xero’s millions of customers (although not in Australia), offering Klarna’s alternatives to traditional credit means they can get paid up front. Klarna says it checks a consumer’s eligibility before approving each purchase and provides a clear installment plan, meaning 99% of lending is repaid and 40% of orders are repaid early. David Sykes, chief commercial officer, Klarna, says: “Klarna’s flexible payment options are typically associated with clothes and shoes but that has been changing for a long time. "This partnership brings Klarna’s flexible payment options to micro businesses of all kinds so business owners can get paid on time and their customers can choose how and when to pay. "This includes businesses where gardeners and landscaping services using Xero can now offer a Klarna BNPL payment option, plumbers and heating engineers using Xero can fix their customers’ boilers and let them spread the cost while small businesses involved in the construction industry could spread the cost of smaller projects over three interest-free installments.”