Dive Brief:
- Klarna has partnered with Adobe Commerce to let merchants offer its buy now, pay later services, according to a Tuesday press release.
- The deal will extend Klarna’s installment payment services to more customers buying from sellers on Adobe Commerce, the release said.
- “Consumers are embracing the flexibility that buy now, pay later services can provide, with Adobe Analytics data showing over 11 percent growth this year,” Jason Knell, senior director of content and commerce partners at Adobe, said in a statement.
Dive Insight:
Klarna’s partnership with Adobe Commerce builds upon 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.”
Eeke de Milliano, Stripe’s head of global product, said in a recent interview with sister publication Payments Dive that BNPL volume spiked 172% in the past year. 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.
