Gap Inc. Partners with Klarna for Interest-Free Installments, Expanding 'Buy Now, Pay Later' Options
Gap Inc. has expanded its payment options, partnering with Klarna to offer interest-free installments. Meanwhile, Klarna is set to launch short-term loans at Walmart. The move comes as consumers, particularly younger shoppers, prefer 'buy now, pay later' services over credit cards.
Gap Inc. has integrated Klarna's payment services across its brands, including Old Navy, Gap, Banana Republic, and Athleta. Customers can now pay for purchases in full or in four interest-free installments online or via the mobile app. This addition joins existing payment options such as Apple Pay and Afterpay.
Klarna, which has over 26 million U.S. customers and 724,000 sellers worldwide, is expanding its services. It recently debuted on the New York Stock Exchange and plans to become 'ubiquitous' at store checkouts. The company is also offering short-term loans at Walmart later this month. This follows its strategic partnerships with major payment providers like Stripe, J.P. Morgan Payments, Worldpay, and Nexi, transforming from a pure 'buy now, pay later' provider to a comprehensive financial platform.
Gap Inc. reported flat Q2 net sales and a 1% increase in comparable sales compared to last year. Inventory was up 9% due to tariffs and early imports. Despite this, the company's namesake brand recently unveiled its global fall 2025 campaign featuring low-rise denim, which received a positive reception.
Gap Inc.'s partnership with Klarna provides customers with more flexible payment options, aligning with the growing preference for 'buy now, pay later' services. Klarna's expansion into short-term loans and strategic partnerships further solidifies its position in the financial landscape. Both companies look to strengthen their offerings and customer bases.
Read also:
- West Virginia Governor's Revived Board Sparks Legal Concerns Amidst US Clean Energy Push
- Trump and Xi speak over the phone, according to China's confirmation.
- Unlawful MMO gold peddler cultivates around half a million dollars in income, triggering a tax dispute, followed by developers unveiling strategies to clamp down on real-world transactions
- Prices of transit tickets in Berlin and Brandenburg are on the rise
