Global payments platform Klarna has partnered with Sainsbury’s PLC to expand the latter’s payment options to the online checkouts of its brands.
Following the deal, shoppers will be able to use Klarna at the online checkouts
Of Argos, Habitat and TU, choosing from Klarna’s three interest free payments; pay immediately and in full with Pay Now, pay in 30 days with Pay Later or over three equal instalments with Pay in 3.
Rising in popularity, more and more consumers are using Buy Now Pay Later (BNPL) options. In 2024, the total spend on BNPL transactions in the UK is expected to reach £30bn.
At the forefront of this wave is Klarna, offering payment and shopping solutions. The Swedish company’s credit products provide an alternative to traditional credit, with zero interest and robust eligibility checks to ensure it only lends to those who are able to pay back.
David Sykes, Chief Commercial Officer at Klarna, commented: “More than 20 million Brits already use Klarna and now they can enjoy our flexible payment options at more of their favourite stores.
“Argos, Habitat, and TU are British icons known for reliability and value, making Klarna’s interest-free payment solutions a seamless fit. We’re super excited for this first step in our partnership with Sainsbury’s PLC.”
Earlier this year, the company partnered with Uber and Uber Eats and has since further expanded its portfolio with other renowned brands.
However, it hasn’t all been smooth sailing this year as it described recent guidance from the Consumer Financial Protection Bureau (CFPB) relating to BNPL regulations in the US as “baffling”.
A response, which came after the CFPB’s decision to classify all BNPL lenders as credit card providers, and as such users of these services will be subject to the same legal protections and rights that apply to conventional credit cards.
