Buy now, pay later (BNPL) provider Klarna has expanded into Canada, enabling Canadian consumers to pay for products at merchant partners using its ‘Pay in 4’ service on the app.
As part of its expansion in Canada, Klarna has opened its first North American product development and tech hub in Toronto, and said it has plans to hire more than 500 engineers by 2025.
Klarna also announced its intention to open offices in Vancouver and Quebec “in the future”, and will partner with local academic institutions to help with recruitment.
From 22 February, Canadians can pay using Klarna’s ‘Pay in 4’ service online, in-store and via the Klarna app if they are purchasing from its retail partners in Canada, including Harry Rosen, Mejuri, and Frank And Oak, and global retailers such as Adidas, Sephora Canada, L’Oreal Canada, and GameStop.
‘Pay in 4’ allows consumers to split online and in-store purchases into four interest-free payments, with repayments made every two weeks from the time of purchase.
According to recent research by Klarna conducted among 1,060 Canadian consumers, half of shoppers aged 25 to 56 would like the option of flexible payment options at checkout.
Sebastian Siemiatkowski, co-founder and CEO of Klarna, said: “With our expansion to Canada, we are bringing consumers the more sustainable, flexible payment alternatives they are looking for, empowering them to save time, money and make more informed financial decisions.”
As part of its entry into Canada, Klarna has also partnered with Moneris Solutions Corporation, which processes more than one in three transactions across Canada.
“With over 100 million consumers and operations live across 20 global markets, Klarna’s position at the center of the shopping ecosystem enables us to make the shopping and payments process smoother for consumers, while also offering significant growth opportunities for our partners,” said Kristina Elkhazin, head of Canada at Klarna.
Mayor of Toronto John Tory added: “The latest news with Klarna is a vote of confidence in our city’s thriving and successful technology and innovation sector and an exciting moment for our city as we look to attract more people and businesses.
“I want to thank Klarna for choosing our city for its expansion into Canada. I look forward to seeing this company grow and succeed.”