THE PROCESS
Research
What's already been made?
Is Eat Now, Pay Later a good idea?
Yes! It's driving increased traffic into restaurants because it helps guests discover places to eat and rewards guests for dining at selected partnering restaurants. Since launching, Payo's partners have reported a 50% increase in Average order amount.
Buy Now, Pay Later Partners (Competitive Examples)
Key Takeaways
1. There should be transparent interest fees and payment breakdown.
2. Klarna was the leading contender due to a reasonable bi-weekly payment schedule that is best fit for restaurant purchases, transparent payment schedule, and no pre-existing partnerships.
How does it work? - Klarna In-App
I created a flow to demonstrate how a customer might use the Klarna app to make a purchase for Adidas shoes.
To summarize, (assuming that the user has already provided billing/card information) once the user is on the payment page, they confirm the purchase amount and Klarna shows them a breakdown of 4 installments. They can now generate a one-time “ghost” card which is the amount of their purchase. This one-time card has details such as number and expiration date, which the user inputs into the card information section as if it was a regular credit card. When the order is placed, it charges the customer the first installment as a reserve fee.
How does it work? - Merchant
I created a flow to demonstrate how a customer might use the Klarna app to make a purchase for Adidas shoes.
In this case, the user would select Klarna at ‘Checkout’, fill out their contact information, billing address, card details, review their installment plan, and finally fulfill their purchase.
KEY TAKEAWAYS
I noticed that checking out through a merchant was more convenient and quick since it wasn’t necessary for a customer to make a separate Klarna account or generate a “ghost” card. This would be an advantage for Toast to have a simplified transaction process.
THE PROCESS
Defining
Who is our target user?
Younger consumers in particular are drawn toward simple and flexible payment processes and behavioral shifts away from traditional credit cards. Typically users are within the younger population between ages 18 and 44, where 54% of that group has tried buy now pay later.
THE PROCESS
Designing
Introducing BNPL via Klarna
I explored 3 different ways to introduce Klarna at Toast Checkout. My objective was to communicate Klarna's 4 installment breakdown in a way that was clear and simple.
My team and I agreed that that the visual breakdown in Version C easily communicated to the user how often they would be charged over the course of 6 weeks.
