loading...
Cross
Klarna launching ‘Pay Now’ and loyalty for the customers in the United Kingdom

Klarna launching ‘Pay Now’ and loyalty for the customers in the United Kingdom

Klarna launching ‘Pay Now’ and loyalty for the customers in the United Kingdom

Print Print Email Email

Buy now, pay later (BNPL) market leader, Klarna introduced a new rewards program together with the ‘Pay Now’ option for the customer in the United Kingdom. The company also has plans to expand in nine other markets, including Australia, Ireland, France, Italy, Spain, Portugal, Poland, Canada, and New Zealand.

Klarna’s customers in the United Kingdom will earn reward points for paying through Pay Now, the immediate payment option, or for making a payment on time using Pay Later or Pay in 3 options. Moreover, consumers will be able to redeem the points in the Klarna App for rewards at various brands, including Decathlon, Caffe Nero, and River Island. This will allow the members to access exclusive deals and early discounts on the app.

Together with this, Klarna also launched a new feature called ‘Missions’ to incentivize its customers to explore the app. Specifically, the customers will earn rewards on completion of each small, engaging task to discover different features of the Klarna App through Missions.

Through the rewards program, the company is injecting responsible usage of BNPL loans among its customers, unlike traditional credit card providers. However, with the demand for BNPL loans soaring high, BNPL players have been facing scrutiny from the regulators to make their terms clearer.

According to PayNXT360’s survey, nearly 20 million people had used BNPL services in the United Kingdom in 2021. Moreover, almost one-fourth of BNPL users are concerned about their ability to repay their BNPL bills, and with millennials, this figure rises to over one-third.

Consequently, Klarna strategized to mitigate financial concerns related to BNPL through its Pay Now option. The firm is allowing the customers to repay their balances immediately, which might help decrease the chances of missed payments, the main concern of the regulators. With the Pay Now option, customers are provided with the flexibility of payment as per convenience.

Notably, the Sweden-based firm is diving into loyalty programs to encourage spending as well as decrease the probability of missed or late payments by rewarding customers for on-time payments with the Pay Now option.

Similarly, other BNPL players, such as Zip, also strengthened its position through the addition of new features to bolster customer and merchant loyalty. For instance,

Australian BNPL player recently revamped its app with a feature that allows the merchants to display their latest product deals on the home screen of the app. Subsequently, this could make customers take advantage of the promotions who want to spend, helping the merchants generate more revenue over the next four to eight quarters.

To know more and gain deeper a understanding of the BNPL market in the United Kingdom, click here.

Featured Reports
PayNXT360 Insights

Sign up for The PayNXT360 Insights, and get a weekly roundup of market events, innovations and data you can trust and use.

Sign Up Now
Newsletter

© PayNXT360, All rights reserved | Privacy Policy

Designed & Developed by Cross Atlantic