Klarna Expands BNPL Presence in Furniture Category With Cozey Partnership

Direct-to-consumer furniture brand Cozey has added Klarna’s buy now, pay later (BNPL) solutions to its online stores in the United States and Canada.

Cozey’s eCommerce site now enables shoppers to pay using Klarna’s Pay in Full, Pay in 4 or Financing for larger purchases, according to a Tuesday (Dec. 2) press release.

“At Cozey, our mission has always been to simplify furniture shopping and make high-quality design accessible to everyone,” Dominic Létourneau, chief financial officer and chief operating officer at Cozey, said in the release. “Partnering with Klarna allows us to offer customers even more flexibility and confidence at checkout, helping them design spaces they love without compromise.”

For Klarna, this new partnership expands the company’s footprint in the high average order value (AOV) furniture category, per the release.

“We’re thrilled to partner with a brand that shares our customer-first approach and to bring greater payment flexibility to Cozey shoppers as we continue to expand across North America,” Steven Clarke, head of Klarna Canada, said in the release.

When Klarna released its first earnings report as a publicly listed company on Nov. 18, the company said its number of active consumers had risen 32% year over year to reach 114 million and its number of merchants had risen 38% to reach 850,000.

“GMV [gross merchandise value] grew to $32.7 billion, and the U.S. grew 43% year over year,” Klarna CEO Sebastian Siemiatkowski said during an earnings call. “Consequently, revenue grew to $903 million, and in the U.S., we saw revenue growth of 51%.”

The PYMNTS Intelligence report “Decoding BNPL Users: Necessity, Convenience and Risk Signals” found that BNPL options influence everything from daily grocery runs to major appliance purchases.

The report found that if BNPL options were not available, 43% of consumers would not make the payment or purchase at all, 42.4% would opt to buy a cheaper product or service, and 35.1% would complete the payment but delay other due payments.

Klarna announced in November that it partnered with Lufthansa Group and that the airline group had begun rolling out its flexible payment options across the U.S. and nine European countries.