Dive Brief:

• Payments platform Klarna announced that users can now make in-store purchases via Google Pay in the U.S.

• Sephora, Journeys and Rue21 are some of the earliest retailers to offer Klarna alongside Google Pay and Apple Pay for in-store purchases, according to a company announcement.

• The platform noted that retailers that offer Klarna have reported increases in average order value as high as 310% compared to goods purchased in other ways since it introduced Apple Pay in January.  

Dive Insight:

Through its collaboration with Google Pay, Klarna is providing customers with another contactless payment option. Kroger also recently tested out Google Pay, Apple Pay and other mobile payment options at 61 stores. 

Such partnerships are perhaps another sign of increasing contactless payments adoption. Per a recent survey from the National Retail Federation, 58% of retailer respondents said they accept contactless payments, an increase from 40% last year. 

"We're focused on providing all of our users with a seamless, contactless shopping experience as stores reopen and the pandemic continues to affect communities across the nation," David Sykes, head of U.S. at Klarna, said in a statement. "At the same time, it's critical we help our retail partners drive business growth, both online and offline, to give them a competitive advantage at a time when margins are tight."

Klarna, as well as its competitors, have been partnering with other companies to widen their reach. Back in June, the payments platform debuted its Vibe rewards program and announced that it had reached more than 7.8 million U.S. customers. In June, Mastercard teamed up with Splitit to provide payment installments, and in July Shopify began offering installment payments through Affirm.