Klarna, the leading global payments and shopping service, today announced that it has added 1 million new consumers in the US in just three months as more shoppers have found convenience and value in Klarna’s end-to-end experience. The company has also seen strong growth momentum in its retail partnerships in the US, which have grown by more than 158% year over year. Klarna saw an increase in gross merchandise volume of 44%, amounting to $22 billion, in the first half of 2020, reflecting increased consumer demand for its offerings.
Read More: Finhabits Launches Microlearning Journeys to Help Diverse Communities Build Healthy Financial Habits
“Klarna has been well positioned to meet the challenges and evolving consumer needs in an uncertain marketplace over the last several months, as reflected by our global volume growth of more than 44%,” said David Sykes, Head of US at Klarna. “Our US network has grown to more than 9 million consumers, we see an average of 20,000 new app downloads a day and thousands of retailers are partnering with us to implement forward-thinking strategies that will help them compete effectively, build lasting connections with consumers and provide the payment flexibility their consumers need during this time.”
Globally, Klarna has added more than 35,000 retailers during the first half of 2020 to its network of more than 200,000 retail partners. With more than 4,300 US retail partners already, Klarna is poised to continue its strong momentum through the rest of 2020. Many more of the top 100 US brands are set to go live with Klarna ahead of the busiest shopping season, cementing Klarna’s position as one of the fastest-growing payment companies in the country. In recent months, Klarna has added hundreds of consumers’ favorite brands to its US roster, including Sephora, Vans, The North Face, Farfetch, FWRD, Gymshark, Faherty, ModCloth, Fender, NTWRK, Timberland, Beautycounter, Highsnobiety, Orlebar Brown, Anine Bing, Belstaff, Missguided and Finish Line.
Read More: GlobalFintechSeries Interview with Griffin McGahey, President at HC3
Klarna’s growth comes at a time when US consumers are exploring new ways of shopping. A recent McKinsey & Company consumer survey found that more than 75% of consumers have tried new brands, places to shop or methods of shopping during the COVID-19 pandemic and that 82% of those who have tried a new digital shopping method intend to continue using it even after the crisis ends. Consumers in the US who try Klarna for the first time recognize the value the service provides through flexible payment choices that allow them to decide when and how to pay for their purchases. In addition to the popular Pay in 4 and Pay in 30 options, Klarna recently launched Pay Now, which enables quick and easy payments for Klarna shoppers when they link their debit card to their account. This additional option provides consumers with yet another way to pay for their purchases directly through the Klarna app.
With more than 12 million monthly active users globally, the Klarna app separates the company from competitors with a best-in-class user experience and personalization features. The Klarna app has 1.2 million monthly active users in the US and has been downloaded more than 5.1 million times. Klarna’s app downloads have increased by four times in the last year and, in recent months, they have averaged 20,000 per day.
Earlier this summer, Klarna launched Vibe, the first loyalty program offered in the buy now, pay later space that rewards consumers who pay on time, so as to encourage responsible spending. The no-fee program generated significant interest during the initial rollout period in the US, where 13,000 members have already signed up, and it will also be available in Germany, Australia, Sweden and the UK. In addition to Vibe, Klarna recently launched a Wish List feature which allows app users to create and share lists of their favorite products, as well as follow lists created by brands, influencers and others in their networks. So far, Klarna users have created more than 320,000 lists featuring some 3 million items.
Read More: Celsius Network and Prime Trust partner to secure depositors funds and offer low-cost credit
