Klarna signs deal with Sainsbury’s for interest-free BNPL payments

By Gloria Methri

Klarna has partnered with Sainsbury’s PLC to make its payment methods available at the online checkouts of Argos, Habitat, and TU, which sell homeware, clothing, and gadgets.

Shoppers will now be able to choose from Klarna’s three interest-free payment options: Pay immediately and in full with Pay Now, pay in 30 days with Pay Later or pay in three equal instalments with Pay in 3.

David Sykes, Chief Commercial Officer at Klarna, said, “More than 20 million Brits already use Klarna, and now they can enjoy our flexible payment options at more of their favourite stores. Argos, Habitat, and TU are British icons known for reliability and value, making Klarna’s interest-free payment solutions a seamless fit. We’re super excited for this first step in our partnership with Sainsbury’s PLC.”

Klarna offers fair, sustainable payment and shopping solutions. Its credit products offer an alternative to traditional credit with zero interest. The FinTech conducts robust eligibility checks to ensure it only lends to those who can pay back, which is why 99% of its lending is repaid.

The deal with Sainsbury’s follows Klarna’s latest partnership with European PayTech Nexi, which offered its payment methods to Nets’ Nordic merchant customers. This partnership aims to solidify Nets’ position as a payments gateway provider, enabling its merchant partners to seamlessly offer consumers access to Klarna’s payment methods without the need for multiple technical integrations.

Consumers who wish to pay with Klarna can choose from a range of BNPL and instalment products. More and more consumers are seeing the benefit of interest-free buy now pay later, with total UK BNPL spending expected to amount to £30 billion in 2024.