Klarna (and other Buy Now Pay Later services) can increase sales for merchants by 3-6% of order value, making it more likely customers complete purchases and spend more. This model is particularly effective for high-margin items like cosmetics and electronics, suggesting potential upside for retailers in these sectors that integrate BNPL options. Investors should monitor adoption rates of BNPL services by retailers, as it can be a driver of increased revenue and customer conversion.