Etsy To Offer Klarna’s Buy Now, Pay Later Payment Option
Etsy, the online marketplace for creative gifts, is set to roll out use of the Klarna buy now, pay later (BNPL) shopping payment solution.
Klarna’s BNPL service will be available in the U.S. first, according to a Tuesday (Oct. 20) press release. Etsy will then roll out “Klarna’s flexible payment options in other core markets in 2021.”
The Klarna BNPL setup for Etsy will be enabled by Adyen, a payments platform. The release said Adyen provides “a modern end-to-end infrastructure connecting directly to Visa, Mastercard, and consumers’ globally preferred payment methods.”
PYMNTS’ October Provider Ranking of Alternative Credit Apps puts Klarna in the No. 1 spot. The report noted that Klarna, “Sweden’s gift to installment payments,” is a recent beneficiary of an investment from Macy’s as part of a new partnership.
“We’re excited to work with Klarna to expand the number of payment options available to shoppers through Etsy Payments,” Etsy Chief Product Officer Kruti Patel Goyal said in the release. “Klarna will enable shoppers to buy on Etsy with greater financial control and convenience, without additional fees for sellers.”
Etsy said its global marketplace carries goods from more than 3 million creative entrepreneurs. “Etsy’s platform gives sellers the tools they need to do what they love and connects them with buyers around the world,” said the release. Klarna’s BNPL service will support purchases on Etsy between $50 and $10,000.
Goyal said the Klarna service will “be particularly valuable during the peak holiday shopping period when many shoppers are buying special items for their loved ones.”
The Etsy arrangement “further strengthens Klarna’s presence in the U.S. as a leader” in BNPL services, per the release. Klarna said it has 90 million customers and more than 200,000 retail partners worldwide that are using its eCommerce platform and app.