The FinTech announced on Tuesday (June 9) that it is rolling out Vibe, a rewards program that enables customers to collect points that can be redeemed later for everything from their favorite latte at Starbucks to cosmetics and skincare products at Sephora.
Klarna is initially launching the no-fee rewards program in the United States in June, with plans to roll out Vibe over the next year in the company’s other key markets, which include Germany, Australia, Sweden and the United Kingdom, the company said in a press release.
Klarna users who take part in the firm’s newly minted rewards program can earn one “Vibe” point for every dollar they spend at the company’s 200,000 “partner retail stores globally.” The points can then be redeemed for gift cards for use at Starbucks, Sephora, Uber and Foot Locker.
With its new rewards program, Klarna is also trying to further expand its appeal to credit card users who are motivated to earn rewards program points, but are disenchanted with the high interest rates and fees of some cards.
Klarna’s calling card is the FinTech’s buy now, pay later (BNPL) service, which enables users to buy a product now and pay it off over four installments at no interest.
The company also notes that Vibe is the first rewards program to be offered by a firm in the BNPL space.
“We’re extremely proud to be the first company in the buy now, pay later space to offer a personalized rewards program,” said Sebastian Siemiatkowski, CEO of Klarna, in a statement. “Vibe members have the freedom to shop everywhere and will enjoy access to unique, tailored benefits from hand-picked partners in addition to exclusive offers, deals and other rewards.”
Founded in 2005 in Stockholm, Klarna now claims nearly eight million customers in the U.S., with 3,000 employees in 17 countries.