[DonsDiscountGas]

> It turns out it's worth it to merchants because when you're not paying now, you end up buying more than you would otherwise.

This applies to credit cards too. And Klarna offers 6 week interest free loans (with partial payments along the way), not really that different from the 30 day loans from credit cards. So why is Klarna worth the extra merchant fees to the merchant?

Because the terms are way friendlier. Merchants get the money right away, and there is no risk of chargebacks. The article doesn't mention this specifically though the overall confusion is the same: Klarna is a slightly different form of credit card.