The Sweden-based financial services company, founded in 2005 by Sebastian Siemiatkowski, Niklas Adalberth, Victor Jacobsson, specializes in payment services for ecommerce platforms. Klarna.com and the Klarna app also function as online discovery platforms, where consumers can link to all the businesses that offer Klarna payment plans.
And like all savvy digitally based businesses, Klarna gathers data. According to that data, Gen Z consumers in the US have spent 26% more on clean beauty since the start of the COVID-19 pandemic. “Additionally, among the more than 2 million items that were wish listed on the Klarna app in the past year, personal care products such as sleeping masks, facial protective primers, concealers and peeling solutions ranked among consumers' top picks,” as today’s media release about the Klarna – Beautycounter partnership.
Beautycounter now offers consumers an interest-free installment payment option
“As the leader in clean beauty, partnering with Klarna means we are meeting customers wherever and however they like to shop through more financial control and convenience,” says Gregg Renfrew, Founder and CEO of Beautycounter, in that release.
It’s a business decision that Renfrew suggests will help the clean beauty brand fulfill its mission: “to get safer products into the hands of everyone with a commitment to educate consumers, formulate with responsibly sourced ingredients, and advocate for more health protective laws,” as she tells the press.
The service gives Beautycounter customers the option to purchase product and pay in four equal, interest-free installments.
Buying beauty on an interest-free payment plan
“Klarna's partnership with Beautycounter is an extension of its wider push into beauty and skincare amid rising consumer demand for these categories,” explains today’s media release. In fact, “the company has recently partnered with Sephora, Augustinus Bader, Beauty Bay and OUAI among others in the beauty category.”
And, Cosmetics Design readers will recall that just last month Sephora Canada teamed up with PayBright to offer its customers a similar installment payment service.
These deals are just part of the larger consumer shift away from credit cards and conventional debt accumulation. Installment payment services generally connect directly to the shoppers debit card, approve purchases on a case-by-case basis, and have significant fees late payments (which incur when funds for an installment payment are due but aren’t available in the affiliated debit card account).
