Klarna, the AI-powered global payments network and BNPL firm, is joining forces with Blackhawk Network (BHN), a global branded payments provider, to enable UK shoppers to buy gift cards from top brands and pay later with Klarna.
By launching the Klarna Gift Card Store in the UK, the firm is enabling UK consumers to buy gift cards from a range of merchants, including Airbnb, Argos, Fortnite, Adidas, IKEA, Playstation, Currys and Uber, within the Klarna app. They can then pay for them using Klarna’s range of Buy Now, Pay Later (BNPL) products and instant debit option, Pay Now.
The UK launch follows a successful launch in the US last year, where retailers launched include Airbnb, Uber, DoorDash and Target. Klarna has also revealed plans to roll the concept out to more European markets by the end of 2024.
Raji Behal, head of Western and Southern Europe at Klarna, said: “Following the success of Gift Card Store in the US, we are super excited to see its roll out in the UK. Gift cards are a staple of gift-giving in the UK and help drive business to retailers large and small. We can’t wait for UK shoppers to discover the convenience of Gift Card Store in the run-up to Christmas.”
Targeting gift card growth
The new store also enables users to send gift cards to friends and family, including options to include a personalised note and scheduled delivery. This marks Klarna’s first move into the £7billion UK gift card market, which is predicted to rise to nearly £9billion in 2025, according to the Gift Card & Voucher Association.
With digital gift cards now sharing over 50 per cent of this market, Klarna’s gift card solutions include a barcode which enables consumers to redeem their cards both digitally and in-store.
Anna Uprichard, VP of commerce at BHN, also said: “We predict that the gift now, pay later emerging trend will grow, with our 2024 Global Gifting research showing 15 per cent of consumers that purchased a gift card, did so through Klarna.
“By combining our global network of brands and retailers in branded payments with Klarna’s innovative payment solutions, the partnership provides consumers with a convenient and flexible way to purchase gift cards. This is especially important as we approach the biggest gift card buying period, Christmas.”
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