Klarna, a leading global retail bank, payments, and shopping service today announced the launch of its new Loyalty Card feature in the Klarna App. This allows app users to store and access their physical loyalty cards as digital versions, removing the need to carry plastic equivalents while shopping in-store. In addition, Klarna today launched its new in-store payment feature “Digital Cards”, empowering UK consumers to pay for any purchase in three, interest-free instalments in the physical stores of participating retailers. The new features transport the flexibility, convenience, and control of Klarna to the in-store shopping experience, saving consumers time and money every time and everywhere they shop. 

All your loyalty cards in one place

Loyalty programs are very popular amongst UK consumers. According to a 2022 study, 87% say loyalty programs influence them to buy again from a brand. However, today many loyalty programs require consumers to carry a physical card with them, which consumers find inconvenient. In a recent Klarna survey, nearly a third (30%) of UK respondents have been put off signing up for a loyalty program because they didn’t want to carry another card. In addition, nearly half (48%) of British consumers do not carry all of their loyalty cards with them while out shopping, meaning they regularly miss out on rewards when shopping in-store. 

Powered by Klarna’s successful acquisition of mobile wallet provider Stocard in 2021, the new Loyalty Card feature in the Klarna App solves this by enabling consumers to store all of their physical loyalty cards as digital versions in one place. Now, shoppers can easily access any of their cards directly in the Klarna App and never miss out on loyalty points or perks again. At the checkout, the card’s digital barcode stored in the app can be scanned in the same way a physical card would be scanned. The feature supports over 400 reward programs in the UK alone, spanning everything from clothing and beauty to technology and groceries. 

Björn Goss, Product Director at Klarna and Founder of Stocard: “Physical loyalty cards are an inconvenience in today’s digital world and are therefore often left at home, resulting in consumers missing out on deals and merchants losing a prime opportunity to reinforce brand loyalty.  We all know the situation: you are offered to join an attractive loyalty program but don't want to carry yet another plastic card around. By equipping Klarna App users with a digital space to collect their loyalty cards we allow them to reap the rewards of their in-store purchases in a far more convenient way, helping ensure that every penny spent counts towards a return.”

The power of “Pay in 3” - now also in-store

In addition to storing all of their loyalty cards in the Klarna App, consumers can now also use the app to split any purchase at partnered physical stores into three, interest-free payments with the new “Digital Card” feature. For retailers, there is no point-of-sale integration or technical activation necessary to offer “Pay in 3” in their stores. App users simply create a digital card for the purchase amount in a few seconds and pay by tapping their device to the retailer’s existing card terminal, giving consumers the same flexibility, convenience and control they know from using Klarna’s popular “Pay in 3” service online. This offers a desperately needed alternative to high cost credit cards, which burden British consumers with APRs that average out at a staggering 20%. The monthly repayment schedule for in-store “Pay in 3” purchases is transparently displayed in the Klarna App, with reminders for upcoming payments ensuring consumers always stay on top of their finances.

The new digital card offering launches today to all Klarna partnered retailers and is already available at 89 stores across the UK, including the likes of OSPREY LONDON, Patisserie Valerie, GANNI, Rieker and TJ Hughes.

The new experience will soon be enriched further with smart tools serving to create a true omni-channel shopping experience. These include an interactive map showing app users the partnered retailers nearby, and a barcode scanner so consumers can save items in their Klarna Collections or even place an order for a size or colour that is out of stock. These tools not only help consumers along their shopping journey but also offer new engaging ways for retailers to drive traffic to their stores, improve conversion rates and understand their customers’ shopping behaviour across on and offline channels. 

David Fock, Chief Product Officer at Klarna: “While online shopping has experienced an outright boom in recent years, presently, 74% of UK retail sales are still made in brick-and-mortar stores. At Klarna, we want to give consumers the world’s best shopping experience, no matter whether that’s online or on the high street. After the launch of the Klarna Card and our revolutionary Virtual Shopping tool, we are now delving deeper into physical retail. By bringing ‘Pay in 3’  into UK stores, we reinforce Klarna’s role as a growth engine for retailers and raise the in-store payment experience to a new level of convenience and flexibility.``

How does the Klarna Loyalty Card feature work? 

• Step 1: From the homepage of the Klarna App, click on the Loyalty Card icon and select the “Add card” button to see a full list of supported merchants and loyalty programs. Here users can browse through or search for a specific loyalty program. Here users can browse through or search for a specific loyalty program. Alternatively, if the loyalty program is not supported yet, the user can choose to add “Other card” and input the merchant name manually.

• Step 2: Add your card. After finding the loyalty program, users can scan the barcode on their physical card with the camera on their mobile device. The app will then create a digital copy and store it in the reward space in the Klarna App. For cards that don’t have a barcode, users are able to manually type their membership number in to add the card.

• Step 3: Use your card to collect points in-store. While shopping in a physical store, users are able to display and scan their loyalty cards from the Klarna App. Simply open up the card from within the app, scan the card at the checkout and collect the points or claim your discount, just as you would with a physical card.

How does the Digital Card feature work? 

• Step 1: Start by searching for a retailer you like in the Klarna App or use the map feature to find stores of partnered retailers close by.

• Step 2: Once you’ve chosen an item you want to purchase, open the Klarna App and create a digital card for the purchase amount on the store page. The purchase is split into three, monthly instalments with no interest or fees.

• Step 3: Once the card is created, simply add it to Apple Pay or Google Pay and pay by tapping your device on the contactless terminal at the till. 

• Step 4: After the payment, you can make use of the same post-purchase features in the Klarna App as you can when shopping online, such as managing your returns and viewing the CO2 footprint of your purchase

The new in-store features are the latest in a series of product innovations this year that position Klarna firmly in the retail shopping space. These include the Klarna Card, a physical VISA card that allows consumers to pay anytime up to 30 days after purchase, as well as Virtual Shopping, which connects online shoppers directly with experts in physical stores through live video and messaging, providing a highly personalized experience that helps consumers shop online with confidence.