Klarna’s App Drops in Across Borders; Synchrony Adds BNPL to CareCredit – Digital Transactions
With headquarters in Sweden and operations in 26 countries, Klarna AB is dropping the e-commerce border constraints, at least within its app with a new service called Consumer FX.
On Wednesday, Klarna says app users will be able to shop at any participating Klarna merchant in the world and pay in their own currency. That means, Klarna says, any Klarna merchant can sell to its 120 million users in 26 countries with no new integration and no need for a local entity or foreign bank account. Klarna handles the foreign exchange disclosures, consent, and compliance.
“Increasingly, shoppers aren’t thinking in borders,” David Sykes, Klarna chief commercial officer, says in a statement. “Consumer FX enables consumers to use our payment options on any Klarna merchant, regardless of country or currency, driving additional value across our global network.”
More than 1.2 million merchants offer Klarna’s buy now, pay later and installment payment options.
In related news, consumer finance specialist Synchrony has added a BNPL option to its CareCredit program. CareCredit had been a credit card or line of credit product that consumers can use to pay for out-of-pocket medical or pet expenses.
The new BNPL option, called CareCredit Pay Later, is a one-time installment loan with fixed monthly payment amounts, a clear payoff timeline, and a fixed annual percentage rate. Stamford, Conn.-based Synchrony continues to offer its CareCredit credit card and its CareCredit Rewards Mastercard. Currently, more than 20,000 merchant locations accept the new BNPL option, though Synchrony says further locations will be added. More than 290,000 locations accept the CareCredit credit card.
Synchrony says consumers are looking for more payment options and that a one-size-fits-all approach may not work for all. CareCredit Pay Later gives them more options and flexibility, Synchrony says.
Consumers apply for any of the products through a single application and eligible consumers can select the CareCredit option they’d like. Applications are run through the Synchrony PRISM underwriting engine.
