Klarna, the leading global retail bank, payments and shopping service, announced it is expanding its solutions for US consumers and retailers by offering flexible payments for subscriptions, one of the fastest growing and largest sectors of the Services economy.
The first-of-its-kind offering in the US provides consumers with a more convenient, transparent and affordable way to pay and manage quarterly and annual subscriptions, memberships, and more, by allowing them to spread their purchases into 4 interest-free payments and track everything in the Klarna app.
According to Insider Intelligence, the subscription economy is growing exponentially, with US retail ecommerce sales projected to grow to $28 billion in 2021. By 2023, 75% of organizations selling direct-to-consumer will offer subscription services, reports the Subscription Trade Association. With Klarna's US subscription offering, merchants across categories such as beauty, apparel, and fitness services can now provide added value to consumers who seek convenience, flexibility, and curated experiences.
"The subscriptions market has seen massive innovation in the last decade to meet increased demand and popularity amongst consumers," said David Sykes, Head of North America, Klarna. "That's why we're thrilled to announce Klarna's subscription offering in the US and a first for the market. As competition intensifies, the brands that provide the best services across value, flexibility, and a customer-obsessed experience will thrive."
Klarna's subscription offering in the US is an extension of its established global subscriptions products across markets including Sweden, Norway, Finland, Germany, Austria, UK, and the Netherlands, with plans to further expand the offering in 2022.