In Its Latest U.S. Gambit, Klarna Helps TaylorMade Sell More Golf Clubs

You’ve heard of subscriptions for magazines and concert tickets. Now the subscription model is coming to golf clubs. TaylorMade Golf Co. on Monday said an online purchasing and financing program it started in April has generated a 30% increase in conversions and a 5% jump in average order value. The company did not release actual figures.

The program, which Carlsbad, Calif.-based TaylorMade calls “The Turn,” allows golfers to pay for their clubs over 18 or 30 months, Near the end of the payment period, they can either keep the set or trade it for a new one. If they upgrade, payments stop on the old set and start on the new one. Payments and financing are handled by Klarna, a Sweden-based e-commerce processor that has been expanding its U.S. presence over the past two years.

A set of clubs can start around $200 and run into thousands of dollars, creating a financing and subscription opportunity, officials said. “We launched The Turn … around the beginning of the golf season. In the weeks that followed, it was clear that we were already surpassing all sales expectations,” said John Gonsalves, vice president, direct to consumer and digital at TaylorMade, in a statement.

The TaylorMade program represents Klarna’s latest thrust in the U.S. market. But it is also attracting interest in its home market. The company in June received an investment from Visa Inc., which said its focus was on developing online commerce for more consumers in Europe. The parties did not disclose the size of the investment.

Klarna and TaylorMade disclosed details of The Turn program at Shop.org, a trade show in Los Angeles.