With the gamut of alternative payment options growing for online purchases, the number of companies adopting buy-now-pay-later services is also expanding.
American online marketplace known for handmade goods and craft supplies, Etsy, is partnering with global payment solution leader Klarna as an opportunity for consumers to support small businesses without having to pay the entire amount upfront for their purchases.
US shoppers will be able to pay in instalments for purchases. Orders within the range of US $ 50- US $ 250 can be paid for in four interest-free instalments, while orders above US $ 250 to US $ 10,000 can be financed from Klarna on a schedule offered by the platform.
However, the instalment options will not affect the sellers on Etsy who will receive funds upfront when customers pay with Klarna.
This service will be made available to other markets in 2021.
Etsy has been one of the many e-commerce platforms that have experienced exponential growth during the pandemic. Second quarter revenues for the company soared by 136.7 per cent to US $ 428.7 million.
The company saw a total of 11.5 million new buyers shopping from the platform and 7.2 return customers who became active after more than a year of inactivity.
On the other hand, Klarna has been partnering with a lot of top names in fashion retail like Asos, Macy’s and Toms out of which, Macy’s even invested in the payments platform.
Klarna has garnered around 8 million users and debuted its own loyalty incentive programme.