Klarna launches ‘Pay Now’ service in U.S

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The company also said it plans to introduce the Klarna Card in the U.S., bringing its flagship buy now, pay later (BNPL) service in a physical card format.

Klarna, backed by the likes of payments technology giant Visa (NYSE:V), private equity firm Permira and venture firm Sequoia Capital, is best known for its “Pay in 4” service in the United States.

The service allows for purchases to be split into four interest-free payments, where users are required to make one payment every two weeks.

With pandemic-related lockdowns turning shoppers to online payment platforms, demand for financial technology companies has boomed, with digital payments behemoths like PayPal Holdings Inc (NASDAQ:PYPL) and Square Inc (NYSE:SQ) expanding into the BNPL sector through acquisitions.

Last month, Klarna announced a similar move for its users in the United Kingdom, introducing the “Pay Now” option amid news of upcoming regulatory changes for the BNPL market in the country.