Sweden-based payments services provider Klarna this week announced a deal with European eCommerce firm About You that will allow customers in Germany and Switzerland to use the “Pay Later 30” payment option.
About You customers in Germany and Switzerland have only been able to process instant payments via Klarna.
Now the fashion retailer and the payment provider are starting an extended partnership – and they also want to advertise it on a large scale.
About You customers in the Netherlands, Austria, Denmark, Sweden, Belgium, Finland and Norway have been able to choose between Klarna Pay Now and Pay Later 30 since 2020.
It is not known why the introduction in Germany and Switzerland took so long.
About You operates a website and app that the company says provides customers with “personalized shopping experiences.”
With 400,000 items from more than 2,000 brands, the company’s sites and apps draw “more than 30 million monthly active users,” according to the latest news release.
The new option should be communicated in a joint advertising campaign, which should also stimulate customers’ love of second-hand fashion.
However, in 2021, Klarna also introduced stricter criteria in the credit assessment of 18-25-year-olds.
“Even though we see that Swedish Klarna customers between 18 and 25 are getting better at paying their invoices on time, we continue to take greater responsibility for financial health among young people. We are particularly concerned about the young adults who shop with Klarna, and want to make it easier for them to make smart private financial decisions.”
“They often have less experience with credit and less understanding of the consequences of not paying on time. At the same time, it is a group that is interested in personal finance and that uses digital aids, which makes it easier to keep track of invoices and payments, says Jesper Eriksson, country manager at Klarna in Sweden.”