Klarna has partnered with John Lewis & Partners to offer its “Pay in 3” BNPL service, allowing customers to spread payments over 60 days with no interest accrued.
Starting from Oct. 5, Klarna’s flexible payment methods are available for purchases at JohnLewis.com website and the John Lewis app.
The John Lewis Partnership is the UK’s largest employee-owned omnichannel business. It includes leading retail businesses of Waitrose & Partners and John Lewis & Partners, as well as John Lewis Broadband and John Lewis Insurance services. Besides typical retail operations, John Lewis Partnership provides financial services like foreign currency exchange and credit cards.
Now, John Lewis customers can leverage Klarna’s interest-free ‘Pay in 3’ interest-free product to spread the cost of their purchases over 60 days.
“Klarna has become a go-to payment choice for everything from beauty and fashion through to homewear and electronics – we hope that the introduction of Klarna will make John Lewis even more accessible and help attract a new customer that may not have traditionally shopped with us,” said Andy Piggott, Director of Credit and Banking at John Lewis Money.
With the latest collaboration, Klarna is now offered by half of the UK’s top 100 retailers, including major high-street names like Argos, Habitat, Boots, and WHSmith. The fintech company witnessed the evolution of its customer base, with the average age of its users now being 38 and the fastest-growing demographic being those aged 65 and older.
Klarna has 10 million active users in the UK, spending an average of £80 per transaction, a perfect illustration of the increasing popularity of interest-free Buy Now, Pay Later (BNPL) options in the country.
In 2023, the frequency of British consumers using an instalment payment plan increased by 10% compared to a year ago against the background of the cost of living crisis. About half (54%) of the 18 to 24-year-olds surveyed in the UK expected to take out a BNPL loan within a year, a 6% increase year-on-year. Moreover, almost 20% of over-65-year-olds had also used short-term loan products or intended to do so in the next 12 months, which is twice as much as 10% reported in 2022.
In recent months, Klarna launched a Gift Card Store in the UK, expanding its offering in the country, while another flexible payment network Affirm also introduced its BNPL services to local customers, increasing competition in the UK BNPL market.
