Buy now, pay later company Klarna has unveiled a new shopping app that allows UK-based consumers to pay for products in instalments on any online retailer – even if the store has not officially partnered with the Swedish fintech.
Klarna's in-app function will enable consumers to pay for their desired item in three monthly interest-free instalments.
The payment plan option was previously available in the US, Australia and Sweden where the app boasts 6.5 million monthly users, with the pay later used more than 12.8 million times.
The service, according to Klarna, will eliminate the need for credit cards and will also allow app users to integrate monthly budgets as well as personal spending limit functionalities in an effort to promote responsible spending.
“At Klarna, we believe that no-one should ever have to pay credit card fees or high interest rates and now, thanks to our new in-app shopping feature, they don’t have to," said Sebastian Siemiatkowski, CEO of Klarna.
"Shoppers now can interact with their favourite retailers without having to leave the Klarna app, to create a smooth, safe and frictionless shopping experience.
"Our one stop shop app is the future of shopping, it creates a truly personalised and bespoke service for every user and liberates consumers from ever paying more than the price of the product.”
Additional Klarna app features include personalised wish lists, curated content and price drop notifications.
To promote the app, the #WhyPayInterest advertising campaign has been rolled out to highlight the differences between credit cards and companies such as Klarna.
It also aims to "challenge the outdated credit model that saw Brits pay £5.7 bn in credit card interest and fees in 2020 alone".
