Checkout is usually the moment of truth for UK Shopify merchants. Even when customers reach the final step with strong intent, friction in the payment flow often leads them to abandon their purchase. Long forms, unexpected payment errors, and low trust in available methods all contribute to lost revenue.
Shopify’s checkout is already a strong foundation, but adding Klarna and Pay by Bank takes it further. Klarna reduces psychological barriers by giving shoppers more flexibility and confidence. Pay by Bank removes the technical friction that causes many card payments to fail. When used together, they create a checkout experience that feels fast, predictable, and aligned with how UK consumers prefer to pay.
Key Takeaways:
Checkout friction remains one of the biggest revenue blockers for Shopify UK merchants, especially on mobile.
Klarna improves completion rates by reducing psychological friction and giving customers flexible, trusted payment choices.
Pay by Bank improves technical reliability by eliminating card declines, expiry issues, and 3D Secure failures.
Using Klarna and Pay by Bank together creates a complete optimisation stack, covering both emotional and technical barriers.
Merchants offering both methods typically see higher conversion, fewer failed payments, and stronger customer trust.
The Sources of UK Checkout Friction
A large share of abandoned carts can be traced back to well‑known issues: customers being asked for too much information, interruptions caused by mandatory account creation, unclear trust signals, or a payment method that does not feel secure. On mobile, where most UK ecommerce happens, these issues become more visible.
Checkout optimisation is therefore less about redesigning the page and more about removing these friction points with the right payment options.
How Klarna Improves Checkout Performance
Klarna helps customers complete their order by shifting their focus away from the full upfront cost. Many UK shoppers are already familiar with Klarna, and seeing it appear at checkout makes the process feel instantly more trustworthy.
Klarna improves the experience through a clear, minimal interface and fast progression. Instead of entering long card details, customers confirm a small set of information and quickly move to the final stage. This ease often leads to a higher completion rate and a natural lift in average order value.
Key benefits include:
a simplified payment decision
reduced hesitation through flexible options
instant verification and fewer steps
strong brand recognition that encourages trust
How Pay by Bank Improves Checkout Performance
Pay by Bank removes many of the common reasons for failed payments. Because it operates through secure open banking rails, it avoids the pitfalls that come with card payments: expired cards, mistyped numbers, and unpredictable 3D Secure challenges.
Instead of entering card information, the customer selects their bank, authenticates directly in the banking app, and returns to checkout with the payment completed.
This approach delivers:
higher payment success rates
fewer interruptions or security challenges
a direct bank‑to‑bank flow that feels natural on mobile
a more predictable payment experience for merchants
Ready to Optimise Your Shopify Checkout with Pay by Bank?
Wallid helps Shopify UK merchants increase conversions by offering fast, secure Pay-by-Bank checkout that eliminates card declines,
avoids 3D Secure friction, and reduces payment processing costs — all while working seamlessly alongside Klarna.
Discover how Open Banking payments reduce checkout friction, improve payment success rates, and
support a more stable, future-proof checkout flow for UK customers.
Klarna and Pay by Bank: A Complementary Pair
Most alternative payment methods address only one type of friction. Klarna and Pay by Bank complement each other because they solve different parts of the same problem.
Klarna removes emotional friction by reducing upfront commitment. Pay by Bank removes technical friction by bypassing card rails entirely.
The combined benefits can be seen clearly:
Customer type
Klarna benefit
Pay by Bank benefit
Combined effect
Price-sensitive shopper
Flexible pay-later and instalment options reduce hesitation
Instant, low-friction direct payment via bank
More completed purchases across budget-conscious customers
Mobile-first buyer
Optimised mobile UI with minimal input required
Biometric bank-app authentication enables very fast checkout
Authentication through the familiar banking app boosts confidence
Higher trust at the final purchase step
High-value purchaser
Instalments increase purchase comfort for large orders
High authorisation success reduces declined payments
More successful high-ticket transactions
Repeat buyer
Streamlined repeat Klarna flow speeds up returning customers
Bank-app authentication makes repeat payments almost instant
A faster and more predictable repeat-purchase process
What this means for your store:
This combination widens the net of customers who can complete checkout with zero friction.
Klarna’s UX Improvements in Context
Klarna makes its value known early in the buying journey. Shoppers often see Klarna messaging on product and cart pages, which sets expectations before they reach checkout. Once they select Klarna, the interface is intentionally clean, guiding the customer through a minimal number of steps.
This reduces confusion, shortens decision‑making time, and helps customers move closer to confirming their purchase.
Pay by Bank’s UX Improvements in Context
The Pay by Bank flow is intentionally linear. The customer selects the method, chooses their bank, authenticates, and is returned to checkout without additional forms or screens.
This removes several barriers at once: typing errors, outdated card details, and inconsistent 3D Secure screens. Instead, customers move through a predictable and familiar process using their own banking app.
What a High‑Converting Shopify UK Checkout Typically Includes
A modern UK checkout performs best when it offers a balanced set of payment methods that serve different shopper profiles.
A strong configuration generally includes:
Apple Pay or Google Pay for instant, device‑based checkouts
Klarna for customers who prefer payment flexibility
Pay by Bank for customers who value speed and trust their bank app
A traditional card option as a universal fallback
This blend ensures that customers see a method that suits their buying style, reducing the chance of hesitation.
Ready to Optimise Your Shopify Checkout with Pay by Bank?
Wallid helps Shopify UK merchants increase conversions by offering fast, secure Pay-by-Bank checkout that eliminates card declines,
avoids 3D Secure friction, and reduces payment processing costs — all while working seamlessly alongside Klarna.
Discover how Open Banking payments reduce checkout friction, improve payment success rates, and
support a more stable, future-proof checkout flow for UK customers.
Typical Performance Improvements
Merchants that introduce both Klarna and Pay by Bank often see measurable improvements. Klarna encourages customers to finalise purchases they might otherwise delay. Pay by Bank dramatically reduces failed payment attempts, making the final step more reliable.
As a result, merchants benefit from steadier revenue, lower operational overhead, and fewer customer support interventions.
Building Trust and Meeting Compliance
Both Klarna and Pay by Bank operate within strict regulatory requirements in the UK. They rely on strong customer authentication, transparent liability frameworks, and secure data handling. This added layer of trust helps customers feel more secure when completing their order.
When payment methods communicate safety and clarity, customers complete checkout with greater confidence.
Should Shopify UK Stores Use Both Klarna and Pay by Bank
For most UK merchants, offering both Klarna and Pay by Bank provides broad coverage across the customer base. One addresses financial hesitation, while the other addresses technical reliability.
Together, they create a checkout journey that reduces friction from the moment a customer arrives at the payment page to the moment the order is confirmed.
Ready to Optimise Your Shopify Checkout with Pay by Bank?
Wallid helps Shopify UK merchants increase conversions by offering fast, secure Pay-by-Bank checkout that eliminates card declines,
avoids 3D Secure friction, and reduces payment processing costs — all while working seamlessly alongside Klarna.
Discover how Open Banking payments reduce checkout friction, improve payment success rates, and
support a more stable, future-proof checkout flow for UK customers.
FAQ
How does Klarna improve checkout performance on Shopify UK?
Klarna reduces friction by offering flexible payment options and a clean, fast interface. Its strong UK brand recognition increases trust,
helping more shoppers complete their purchase with confidence.
Why do card payments fail so often during checkout?
Card payments frequently fail due to expired cards, incorrect details, 3D Secure challenges, or bank fraud triggers. These failures cause
substantial revenue loss for merchants, especially on mobile.
How does Pay by Bank reduce checkout friction?
Pay by Bank bypasses card rails completely. Customers authenticate directly through their banking app, eliminating issues like card declines
and 3D Secure failures. The flow is faster, more reliable, and designed for mobile.
Should Shopify stores offer both Klarna and Pay by Bank?
Yes. Klarna removes psychological hesitation, while Pay by Bank removes technical friction. When offered together, they serve different
shopper profiles and significantly increase overall conversion rates.
Do these payment methods improve mobile checkout?
Both methods are highly mobile-optimised. Klarna keeps form fields minimal, and Pay by Bank routes customers through their banking app,
which provides built-in biometrics and fast authentication.
Can offering Klarna and Pay by Bank reduce payment disputes?
Yes. Both rely on strong customer authentication, which reduces fraud, disputes, and chargebacks. Pay by Bank in particular has almost
no chargeback exposure due to its secure, bank-verified flow.
Are Klarna and Pay by Bank safe for customers?
Yes. Klarna provides clear buyer protection and transparent flows, while Pay by Bank uses FCA-regulated open banking
authentication directly through the customer’s bank, giving it one of the strongest security profiles of any payment method.
Do these methods increase repeat-purchase rates?
Yes. Klarna simplifies decision-making for returning buyers, while Pay by Bank allows them to complete payments in just a few taps
using their trusted banking app, making the overall experience faster and more predictable.
Expert Note:
Written by a Wallid Content Specialist focusing on Shopify UK payments, checkout optimisation, and open banking adoption.
This article is part of Wallid’s series helping merchants reduce checkout friction, increase trust, and optimise conversions using Klarna and Pay by Bank.
This article explains how Shopify UK merchants can optimise checkout by combining Klarna and Pay by Bank.
It highlights how Klarna reduces psychological friction through flexible payments, while Pay by Bank removes
technical barriers caused by card declines and 3D Secure challenges. Together, these methods create a faster,
more trusted, and more reliable checkout experience for UK customers.
Checkout optimisation for Shopify UK improves conversions by combining Klarna and Pay-by-Bank. Klarna reduces psychological friction with pay-later and instalment options, increasing average order value and buyer confidence. Pay-by-Bank eliminates technical friction—card declines, 3D Secure failures and expired cards—by using secure open banking authentication for instant, reliable payments. Together they raise completion rates, reduce disputes, and deliver a faster mobile-first checkout.
Summary:
Klarna and Pay-by-Bank complement each other to reduce checkout friction on Shopify UK. Klarna gives shoppers payment flexibility that reduces hesitation and raises average order value. Pay-by-Bank removes card-related technical failures by using open banking authentication, increasing payment success and lowering disputes. Implement both with express methods (Apple/Google Pay first), clear microcopy, and robust fallbacks to maximise conversions and mobile performance.