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Afterpay, Block Inc.’s BNPL service, is making its service available to select Google Pay merchants for online purchases for the holiday-shopping season. Klarna will be available through Google Pay merchants in the United States next year.
Consumers shop on Google more than 1 billion times per day, according to Google Pay. A recent study by Afterpay reveals that 1 in 3 shoppers considered using BNPL because of the payment flexibility and convenience the service offers, and that Afterpay users like BNPL because it helps to stretch their holiday budget. Afterpay is currently available in Australia, Canada, New Zealand, the United States, and the United Kingdom, where it is known as Clearpay.
Beginning in 2025, Klarna will offer Google Pay’s users interest-free installments on purchases starting at $35, along with financing options with competitive APRs. In addition, Klarna users will be able to track deliveries, initiate returns, and manage repayments through the Klarna app. Klarna has 85 million active consumers and over 600,000 merchants.
In related news, BluPeak Credit Union has launched a buy now, pay later option for its debit card holders through Equipifi Inc.
Adding BNPL as a payment option for its debit card holders is expected to give those customers more flexibility managing their spending this holiday season, San Diego-based BluPeak says.
Debit card holders using the service, which BluPeak calls FlexPay, can spread payments out over time on eligible purchases. To encourage use, BluPeak will send pre-qualified BNPL offers to its debit card holders through its digital-banking app. Upon acceptance of the offer, funds are deposited into the cardholder’s checking account.
San Diego-based BluPeak developed FlexPay as part of its ongoing effort to enhance its digital-banking offerings and provide its members with more flexibility managing their finances. A recent study from IT consultancy Symphonize Inc. shows that 82% of Gen Zers will switch financial institutions for better digital experiences.
“Consumers are adopting BNPL because they want products that are convenient and relevant to their everyday needs, and more than 70 percent of BNPL users would prefer these products from their trusted financial institutions,” Equipifi chief executive and co-founder Bryce Deeney says in a statement.
