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January 26, 2022Blog Posts

Buy now, pay later firm Klarna launches physical card in the UK

CNBC

Swedish fintech firm Klarna is embedding its “buy now, pay later” service into a physical card in the U.K.

The company on Wednesday announced the launch of Klarna Card, a Visa card that lets users delay payments on their purchases, both in-store as well as online.

The card is already available in Sweden and Germany, where it is now used by over 800,000 people, according to Klarna. This is the first time it has arrived in a country outside the European Union. The company has been expanding aggressively in the U.K. and America.

The Klarna Card will initially only include Klarna’s “Pay in 30” feature, which lets shoppers pay down their debt within 30 days. The company said it plans to include additional payment options in the future.

Like other buy now, pay later firms, Klarna offers a popular product that splits the cost of users’ purchases over a period of monthly installments, typically interest-free. The firm makes money by charging a small fee on each transaction for retailers offering its payment method.

Its card, which comes in either black or pink, will send out push notifications to a customer’s smartphone when they make a transaction. It will also allow users to extend the due date on their payment by up to 10 days for free.

File:Klarna Payment Badge.svg - Wikimedia Commons

Source

New research from The Strawhecker Group analyzes key trends and consumer attitudes.

Download a free infographic covering several findings from the full report.

Consumers have increasingly adopted Buy Now, Pay Later (BNPL) services for multiple reasons; a desire for financial flexibility, a way to avoid incurring credit card debt, or to purchase items outside of their budgets. However, despite its popularity, consumer debt and missed payments have led to calls for additional research and regulation. Read the press release.

To take a closer look, The Strawhecker Group (TSG) conducted a survey of over 1,500 U.S. consumers in early 2021 with the goal of understanding domestic attitudes and perspectives on the use of BNPL services. The complete findings, a selection of BNPL provider profiles, and market landscape details can be found in the firm’s new report Buy Now, Pay Later: An Analysis of Key Trends and Consumer Attitudes.

Highlights of this extensive 81-page report include:

  • Buy Now, Pay Later Background
  • Key Players in the Buy Now, Pay Later Space
  • Buy Now, Pay Later Consumer Survey
  • Concluding Thoughts: The Future of Buy Now, Pay Later
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