Klarna targets the high street with new loyalty and in-store payment features in the UK

Leading payments provider and shopping service Klarna has just launched a new loyalty card feature in the Klarna app, allowing users to store and access their physical loyalty cards as digital versions.

The feature removes the need to carry plastic equivalents while shopping in-store, and the move follows a recent Klarna survey that showed 30% of UK respondents have been put off signing up for a loyalty program because they didn’t want to carry another card.

In addition, nearly half (48%) of British consumers do not carry all of their loyalty cards with them while out shopping, meaning they regularly miss out on rewards when shopping in-store, yet 87% said loyalty programs influence them to buy again from a brand.

The new loyalty card feature in the Klarna app is powered by mobile wallet provider Stocard, which Klarna acquired in 2021.

In addition, Klarna has also launched its new in-store payment feature ‘Digital Cards’. With no technical integration required, Klarna-partnered retailers can now grant their customers the flexibility to pay in three, interest-free instalments in their physical stores via the Klarna app.

The new features “underscore Klarna’s role as a growth engine for brick-and-mortar retailers” and offer them new opportunities to engage with their customers before, during and after purchase, “enabling a true omnichannel experience”.

David Fock, Chief Product Officer at Klarna, said: “While online shopping has experienced an outright boom in recent years, presently, 74% of UK retail sales are still made in brick-and-mortar stores. At Klarna, we want to give consumers the world’s best shopping experience, no matter whether that’s online or on the high street.”

Björn Goss, Product Director at Klarna and Founder of Stocard, commented: “Physical loyalty cards are an inconvenience in today’s digital world and are therefore often left at home, resulting in consumers missing out on deals and merchants losing a prime opportunity to reinforce brand loyalty.

“We all know the situation: you are offered to join an attractive loyalty program but don't want to carry yet another plastic card around. By equipping Klarna app users with a digital space to collect their loyalty cards, we allow them to reap the rewards of their in-store purchases in a far more convenient way, helping ensure that every penny spent counts towards a return.”