Gap Adopts Klarna Payment Options Across Apparel Brands
Specialty apparel retailer Gap Inc. now offers Klarna’s payment options to U.S. shoppers across its four brands, including Old Navy, Gap, Banana Republic and Athleta.
When shopping online or in-app, U.S. shoppers can now access Klarna’s Pay in Full and Pay in 4 payment options, the companies said in a Thursday (Sept. 11) press release.
Pay in Full enables shoppers to pay immediately through the Klarna payment experience, while Pay in 4 allows them to split the cost into four interest-free installments, according to the release.
“We are excited to offer our customers more choice, convenience and control by offering a variety of payment options across our portfolio of brands,” Kevin Meiners, head of loyalty and payments at Gap Inc., said in the release.
Klarna Chief Commercial Officer David Sykes said in the release: “By offering Klarna at checkout, Gap Inc. is giving millions of shoppers the flexibility to shop how and when they want, while also supporting a personalized way to pay.”
The PYMNTS Intelligence report “Decoding BNPL Users: Necessity, Convenience and Risk Signals” found that buy now, pay later (BNPL) options have become deeply embedded in the financial lives of consumers in the United States.
BNPL has appeal across generational lines, with the adoption rate of active BNPL accounts ranging from nearly 25% among consumers between the ages of 25 and 35 to just over 5% among those aged 65 and older.
The report also found that if BNPL were not available, 43% of consumers would not make the payment or purchase at all and 42% would buy a cheaper product or service.
When Klarna went public Wednesday (Sept. 10), its shares ended the day at 15% over the initial public offering price. The company priced its IPO at $40, saw its shares open at about $52, peak near $57 and settle around $45.82.
PYMNTS reported at the time that these results demonstrated the public markets’ embrace of BNPL.
Ahead of the IPO, Klarna reported that its payment options serve 111 million active consumers and 790,000 merchants across 26 countries.
The post Gap Adopts Klarna Payment Options Across Apparel Brands appeared first on PYMNTS.com.