Times are tough.
Amid the ongoing coronavirus pandemic, millions of people all over the world continue to grapple with its many rippling effects, which include a tremendous hit to the global economy and, by extension, people’s wallets.
Throughout the six months since the health crisis took hold in the United States, levels of discretionary spending have ebbed and flowed with other macroeconomic trends such as unemployment, government stimulus measures and mandated lockdowns or restrictions.
The volatility has certainly taken a toll on retail but it has also given a boost to the already-rising trend of low-to-no-interest payment options for lower-cost non-essential items such as clothing, footwear and accessories.
Among the most popular providers is Klarna, a “buy now pay later” solutions service brands can deploy in-store and online.
Here’s how it works: A merchant signs up to be a Klarna brand partner — enabling it to offer the service to customers. A customer is interested in a product from a brand or retailer that is using Klarna. The customer opts to use the service and pays 25% to the brand or retailer up front; Klarna pays the remaining balance of the product’s cost to the brand and assumes all risks. The customer repays Klarna — with no interest — in 25% payment installments. Klarna also doesn’t charge late fees. So if a customer falls behind on payments, the company puts a hold on his/her account so he/she isn’t able to make additional purchases for the time being.
As COVID-19 continues to disrupt traditional retail and more brands explore the direct-to-consumer channel, payment plans and “buy now, pay later” options can provide an improved customer experience, particularly on mobile. And merchants who partner with Klarna can also benefit from the exposure to new consumers, through Klarna’s app.
- 2BigFeet
- Adidas
- Baker’s
- Bearpaw
- Big Shoes
- Clarks
- Clearweather
- Dawgs
- Easy Spirit
- Ego Shoes
- Eye Dance
- Fabrice Tardieu
- Finish Line
- Fortress of Inca
- Furr Toes
- Hibbett
- Huma Blanco
- Hyacinth NYC
- Italeau
- Jack Rogers
- Journeys
- Koio
- Lonia Shoes
- Love & Miche
- Marc Fisher
- Marion Parke
- Merry People
- Nine West
- P448
- Pedors
- Privileged
- Public Desire
- Q by QS
- Rancourt & Co.
- Reebok
- Rockabilia
- Season Three
- She’s Heeled
- Shockoe Atelier
- Shoe Carnival
- Shoe Sensation
- Shuetique Inc.
- Sole Classics
- Standard Fair
- Stilettoskop
- Street Sole
- The Webster
- Timberland
- Toms
- West NYC
- Wolky Shoe Shop
