Klarna Expands Share of Big-Ticket Furniture Market via Article

Modern furniture brand Article now offers Klarna’s flexible payment options at checkout in the United States and Canada.

With these options, Article customers can choose to pay in full, split purchases into four interest-free payments or finance larger orders over time, the companies said in a Monday (Feb. 23) press release.

“Our goal has always been to make shopping for modern furniture effortless,” Olivia Buhren, director of sales and service at Article, said in the release. “Partnering with Klarna gives our customers clear, flexible payment options that put them in control, so they can furnish their homes with confidence.”

Home essentials is one of Klarna’s fastest-growing categories in North America, according to the release. The category’s growth is driven by increasing consumer demand for flexible payment options on big-ticket purchases, per the release.

“Furniture is one of the most considered purchases consumers make online, and flexibility matters,” Steven Clarke, head of Klarna Canada, said in the release. “By partnering with Article, we’re meeting consumers at the moment they’re making meaningful investments in their homes, while continuing to expand Klarna’s momentum in the furniture category.”

The PYMNTS Intelligence report “Split Shift: How Card Installments Are Reshaping the Pay Later Landscape” found that high-income households spend 40% more on buy now, pay later (BNPL) than lower earners.

The report also found that much of the appeal of installments is the payment method’s predictability. Shoppers want to know exactly when money will leave their accounts.

PYMNTS CEO Karen Webster wrote in 2022 that for consumers who have access to credit cards, “BNPL is a convenient, sometimes zero-interest option to pay for an expensive purchase like jewelry, electronics, home goods or vacations, leaving their credit lines available as a cash cushion for other purchases.”

When direct-to-consumer furniture brand Cozey announced in December that it added Klarna’s BNPL solutions to its online stores in the U.S. and Canada, Dominic Létourneau, chief financial officer and chief operating officer at Cozey, said the move was part of the company’s mission to simplify furniture shopping.

“Partnering with Klarna allows us to offer customers even more flexibility and confidence at checkout, helping them design spaces they love without compromise,” Létourneau said.