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The tie-up will extend Klarna's installment payment services to more customers buying from sellers on Adobe Commerce
Klarna’s partnership with Adobe Commerce builds on the buy now, pay later platform’s previous efforts to draw more customers amid a challenging economic climate.
Earlier this year, the company introduced a subscription service that would allow customers to pay a monthly charge to avoid service fees while receiving rewards points and access to promotional offers through partner retailers. Now, the Adobe Commerce deal allows more sellers to offer Klarna’s services.
“Our relationship with Adobe Commerce offers thousands of merchants a flexible, seamless, and smooth way to accept payments,” Erin Jaeger, head of North America at Klarna, said in a statement. “This enhances the shopping experience for consumers and boosts the operational capacities of merchants.”
BNPL volume at payments company Stripe nearly tripled in the past year, Eeke de Milliano, the company’s head of global product, told sister publication Payments Dive in an interview earlier this month. However, de Milliano noted that “buy now, pay later options are priced at a premium and merchants are still trying to understand the value.”
Meanwhile, last month Apple shuttered its BNPL service. Instead the company will offer users of its digital wallet installment loans through debit and credit cards and other lenders starting later this year when they check out with Apple Pay.
Though BNPL usage appears to be on the rise, research suggests that many consumers employing the service are trying to relieve pressure on their tight budgets. Half of BNPL customers used the payment option to spread their cash flow, according to a YouGov and Bankrate survey released in March. Nearly 30% of BNPL users said they spent too much money through the option.
Additionally, “financially fragile” consumers use buy now, pay later services and “appear to have embraced BNPL as a regular payment option,” according to research from the Federal Reserve Bank of New York.
By Tatiana Walk-Morris on July 9, 2024
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