Bluemercury introduces Klarna installment payments in stores

Dive Brief:

Macy's-owned beauty retailer Bluemercury will offer Klarna's installment payments service online and at 183 physical locations, the company announced on Wednesday.
Customers can now make purchases at bluemercury.com and in stores by downloading the Klarna app to create a digital one-time card to add to their Apple or Google wallet.
Klarna surveyed 15,000 U.S. consumers and found that 67% of them preferred to shop in-store for cosmetics before the COVID-19 pandemic. More than 20% of them plan to resume in-store shopping for beauty products once the vaccine becomes more available, the survey found.

Dive Insight:

Klarna, which allows customers to pay for purchases in four interest-free installments, announced an investment from Bluemercury parent company Macy's last year.

"2020 taught us that offering alternative purchasing options is an essential pillar for success," Marla Beck, co-founder and CEO of Bluemercury, said in a statement. "The introduction of Klarna in-store following our online integration allows Bluemercury to reach a new generation of shoppers. As Gen Z consumers look to invest in their skincare and wellness routines, they feel empowered to buy what they need, when they want it."

Klarna's research indicates that about a third (29%) of Gen Z shoppers plan to start shopping in-store again once the vaccine becomes widely available, followed by millennials and Gen Xers (both 23%), boomers (21%) and the silent generation (20%). Additionally, the customer survey found that skincare remains a top priority for beauty shoppers and was the number one spending category among shoppers of all ages.

As Klarna racks up retail partners, the company has also been growing its user base and investment funding. Last summer, the payment platform announced that it had surpassed 7.85 million users. The company recently raised $1 billion in an equity funding round, thereby hitting a $31 billion valuation.

While raising capital and attracting new users, the payment platform has added new features to its platform. Last year, the platform debuted the option to pay for goods in-store via Google Pay and rolled out its no-fee loyalty program.