Klarna launches in-store payment service

The Swedish fintech says the ‘majority of retail transactions in the UK still take place in-store’.

Buy-now-pay-later platform Klarna has launched an in-store payment service for UK shoppers.

The Swedish fintech said customers can use their smartphones at shop tills to pay for goods by either scanning a QR (quick response) code on the retailers’ screen, or being sent an SMS or email with a payment link.  

The start up has deals with 130,000 merchants in 14 markets, including ASOS, Topshop, H&M and JD Sports in the UK. It has 4.4 million British users.  

It said it made the move because the “majority of retail transactions in the UK still take place in-store”.

Klarna offers shoppers alternative payment options such as paying for goods up to 30 days later, or splitting purchase costs over equal payments spread over three months.

Klarna UK general manager Luke Griffiths said: “We’re now bringing more payment flexibility to the in-store environment, so shoppers can move smoothly through the purchase journey, whether they choose to shop online or on the high street.”

The Stockholm-based company, founded in 2005, is the world’s leading buy-now-pay-later platform with a valuation of around $2.5bn, employing 2,500 staff.

In the UK it completes against New Zealand’s Laybuy, while Australia’s Afterpay plans a British launch in the second half of this year.