Buy now, pay later (BNPL) company Klarna will debut its loyalty card feature, a company press release said Tuesday (June 21), letting users store and access physical cards in digital versions.
The feature will be backed by mobile wallet provider Stocard, which Klarna acquired in 2021. The digital loyalty cards integrate with the Klarna app for in-store and online shopping.
Klarna quotes studies saying 69% of U.S. customers are more likely to buy if there are loyalty programs available. But many loyalty programs require shoppers to carry a physical card.
Klarna’s research found that shoppers are more likely to be enthusiastic about joining a loyalty program if they don’t have to use a physical card. This goes in hand with the news that around half of consumers don’t carry all their loyalty cards with them when they’re shopping in person.
“Physical loyalty cards are an inconvenience in today’s digital world and are therefore often left at home, resulting in consumers missing out on deals and merchants losing a prime opportunity to reinforce brand loyalty,” said Björn Goss, product director at Klarna and founder of Stocard.
He said the use of the digital cards would “allow [customers] to reap the rewards of their in-store purchases in a far more convenient way, helping ensure that every penny spent counts towards a return.”
This new feature comes as the Swedish BNPL company is reportedly raising money at a dramatically lower valuation, reflecting the global economic troubles in general and the downturn in tech companies in particular.
PYMNTS wrote that Klarna, valued at $45 billion last year, was negotiating with investors at a value of $15 billion, The Wall Street Journal reported last week.
PYMNTS wrote that Marqeta had partnered with Klarna on the issuing of a physical card allowing consumers to use BNPL features in store.
This will be available in the U.S. and will be used for multiple product offerings.
“By working with Marqeta, we were able to quickly launch a brand new card program with seamless flexibility and controls,” said David Sykes, chief commercial officer with Klarna.