Buy Now Pay Later

Klarna Counts 11M Users, Acceptance At 60K US Stores

Klarna, which works in global payments and shopping services, has expanded to over 60,000 in-store payment services around the country to allow for buy now, pay later (BNPL) services, according to a press release.

The expansion will now cover retail brands including H&M, O.N.S. Clothing, The North Face and Timberland, and customers will now be able to access the option to buy an item in four interest-free payments.

Sebastian Siemiatkowski, CEO of Klarna, noted in the release the inherent value customers still place on the in-store buying experience. He said it is important to provide “a seamless shopping experience across channels that also includes flexible, mobile payment options at checkout,” especially given the massive presence of smartphones in peoples’ lives.

Klarna’s 2020 Holiday Retail Report found that most U.S. customers — 54 percent — typically like shopping in stores during the holiday season. Forty-six percent prefer shopping online.

In addition, 30 percent of shoppers, including 39 percent of Generation Z and millennials surveyed, would find a BNPL installment pay option a boost this year, according to the report.

Klarna allows customers to use the mobile app to create a one-time virtual card at participating stores, which can be used to purchase items.

Klarna’s in-store solution was launched in January with brands MCM, Journeys, rue21 and Sephora, the release noted.

Earlier this year, Klarna was valued at $10.65 billion after a funding round by numerous investors, including private equity firm Silver Lake, and the company's value had sharply increased since its $5.5 billion value in 2019. With this year's investments, Klarna was propelled to be the continent's highest-valued private FinTech.

The round was for $650 million, with Silver Lake putting in $500 million of the total.

A Klarna iOS widget launched earlier this month boasted a new feature to help customers look for the best deals, sales and promotions, with senior product director Daniel Lange saying the point was to help customers feel in control of their experiences when shopping.

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NEW PYMNTS STUDY: ACCELERATING THE REAL-TIME PAYMENTS DEMAND CURVE – NOVEMBER 2020

About: Accelerating The Real-Time Payments Demand Curve:What Banks Need To Know About What Consumers Want And Need, PYMNTS  examines consumers’ understanding of real-time payments and the methods they use for different types of payments. The report explores consumers’ interest in real-time payments and their willingness to switch to financial institutions that offer such capabilities.

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