Klarna brings rewards program, new features to New Zealand

All-in-one shopping app Klarna is launching its rewards program in NZ, rewarding consumers for every payment they make on-time and providing access to exclusive in-app perks.

The launch comes as part of Klarna's expansion into nine new markets, and other new features include delivery tracking and deals, which the company says will assist in meeting the demands of New Zealand shoppers for more value, flexibility and control in their shopping experience.

Founded in 2005, Klarna describes itself as a global retail bank, payments and shopping service that assists consumers in saving time and money.

The company has more than 100 million global active users and two million transactions per day.

Global retailers that have integrated Klarna's technology include H-M, Saks, Sephora, Macy's, IKEA, Expedia, and Nike.

Furthermore, Klarna has over 5,000 employees and is active in 20 markets.

First launched in September 2020, Klarna says its rewards program has gained more than four million members in the US and Australia, with one million members joining in the last quarter alone.

Establishing a New Zealand presence in May 2020, the rollout of new features comes as the company expands its investment in the country. This includes the opening of its Auckland office in 2021.

Klarna says its payment option is now available at the online checkout of leading retailers in New Zealand; these include Cotton On, Aje, Juliette Hogan, and Wynn Hamlyn.

Consumers can also use Klarna's Pay in 4 option at any online shop, irrespective of whether they are directly partnered with Klarna.

The rewards program gives consumers points when they make a payment on time, and these points can then be redeemed in the Klarna app for rewards from world-class brands such as Cotton On, Sephora, and Glassons.

"With our rewards program, we help consumers get more out of every dollar they spend and reward responsible use of [Buy Now, Pay Later] by putting the emphasis on payment, not purchase," Klarna New Zealand senior commercial manager Iain Gillanders says.

"This contrasts with traditional credit card providers which encourage irresponsible spending by rewarding consumers for making a purchase but then charge double-digit interest when they can't afford to pay their bill at the end of the month.

The app's additional features include saving items and unlocking price drop notifications, and managing payments and returns.

Further expansion of the rewards program will see it available in the UK, Ireland, France, Italy, Spain, Portugal, Poland, and Canada.