Klarna Expands In-Store Pay-Later Offering With Clover Partnership

Klarna has teamed with Clover to bring its pay-later offering to that company’s point-of-sale system.

The partnership will let shoppers pick Klarna’s installment payment option at more than 100,000 merchants in the U.S., according to a Tuesday (April 15) news release.

“The agreement marks a major step in Klarna’s push into in-store shopping options, which will allow shoppers to use Klarna not just online, but in the places, they visit every day such as local shops, and service providers,” the company said in the release.

Beginning Tuesday, in-store shoppers at select Clover-powered merchants will see a Klarna logo on the pre-screen of payment devices, with a larger rollout to new and existing Clover merchants slated for early next year. The two companies plan to expand the collaboration further to include eCommerce payments and additional geographic expansion.

“We’re bringing Klarna to Main Street,” Klarna Chief Commercial Officer David Sykes said in the announcement. “Klarna started by changing how people pay online — now we’re changing how they pay everywhere. With Clover, we’re meeting shoppers where they are and giving small businesses a powerful new way to grow.”

As recent PYMNTS Intelligence research has shown, offering options such as buy now, pay later (BNPL) is becoming increasingly important as consumers prioritize payment choice and friction-free checkout.

“When the friction is in the mix, consumers may be tempted to switch to another payment option, which takes time, or they might opt to walk away from the purchase altogether — which has a dual, negative effect,” PYMNTS wrote earlier this month. “The customer does not get what they wanted, and the merchant, of course, loses out on incremental revenue.”

The research found a “significant” impact to the disruption of commerce. For customers making essential purchases, 37% of shoppers said they would likely use a different credit product, while a third of consumers said they would skip the purchase.

For nonessential expenses, the numbers are similar, with more than a third of shoppers most often say they would likely skip or delay the purchase, while 32% said they’d switch to another credit product.

“It should be noted here that the nonessential purchases might include anything from candy to clothes, and impulse buying may be the most immediate casualty of the current macro environment,” PYMNTS added.