Klarna, the leading payments provider and shopping service, announced reaching a staggering 7.85 million US customers. The growth was driven by apparel, beauty and footwear brands partnering with Klarna to offer their customers flexible buy now, pay later options.
The disruptive idea has led to Klarna recording over 160% year on year growth of US retail partnerships. Klarna strengthened its value proposition securing partnerships with H&M, Sephora, Timberland, The North Face and other leading retailers.
The payments provider revealed, “more than 4,200 US retailers have now been added to the company’s global base of more than 200,000 retailers”.
Klarna’s app has also seen significant traction and now has more than 1 million monthly active users in the US.
Given the current situation, retailers are sharply focused on leveraging the key channel they have available—online
David Sykes, Klarna.
Earlier this year, Commonwealth announced partnership with Klarna for the Australian market.
Committing to increasing the pace of innovation at Commbank, CEO Matt Comyn said the partnership with Klarna would bring “exciting payment propositions” to CBA customers.
CBA reported signing up about 25,000 customers in less than two weeks of its partnership with Klarna.
Also read: Amazon launches JustWalkOut grabs its first customer
In comparison, Afterpay clocked 5 million active users in the US. Recently, Afterpay revealed substantial investments from Tencent.
Afterpay challenger Openpay revealed raising over $30 million to accelerate growth in the UK and Australian markets. Openpay said, “the investment would help Openpay in ongoing product development, enhancement of technology platform and decisioning engine”.
The buy now pay later sector has seen significant uptake from consumers and merchants since its introduction and has proven its value amid COVID-19
Michael Eden, CEO Openpay
The ‘Buy Now Pay Later’ proposition tied with digital channels is helping bridge the gap between digital and physical retail by providing a convenient, seamless customer experience across channels and touchpoints.
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