Klarna will use GoCardless for its Pay in 4 offering and its financing solution. Klarna users can pay in four interest-free instalments when choosing Pay in 4, as well as across monthly payments with Klarna financing. These alternatives for purchases reduce the risk of failed or late payments and remove the hassle of entering and updating card details, says Klarna.
This new way of paying taps into the trend of US shoppers moving away from traditional forms of credit, with high-interest rates and revolving debt, towards more sustainable payment methods, the company relates. Younger consumers have lower adoption rates for credit cards: In the US, Gen Z consumers have an average of two credit cards compared to the national average of three, according to Motley Fool.
This announcement builds on GoCardless’ presence in the US, a market it entered in 2019. Since then, GoCardless has grown its customer base, which includes DocuSign and 8x8, and opened a second office in New York City to act as the hub for scaling the GoCardless payment infrastructure in the US.
For more information about Klarna, please check out the company profile in The Paypers Company Database.
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