Klarna, a global alternative payments provider, is partnering with millennial favorite fashion brand rue21. Customers will now have the option to pay with four equal payments collected bi-weekly with no interest or fees. This gives customers the ability to stay ahead of trends even faster with a smooth checkout and a payment option that boosts flexibility and purchase power.
"Partnering with rue21 was a natural fit considering its mantra to make fashion fun and accessible to all, which is our exact philosophy," said Michael Rouse, chief commercial officer of Klarna, in a statement. "We're pleased to add them to our retailer partner portfolio that now totals over 130,000 globally and continues to grow as more retailers recognize the need to offer payment options at checkout that meet consumers changing needs and drives loyalty."
"rue21 provides our customers with great on-trend fashion at amazing value that our customers love and want to buy more of. We have been investing in state-of-the-art technology that allows us to identify and deliver the fashion they want, and technology that allows them to buy what they want where and when they want it," said Michael C. Appel, rue21 CEO, in a statement. "This investment in Klarna's technology provides a value-added service to our customers because it allows them to pay for their fashion in installments, which we expect will drive increased sales with our target demographic."
The necessity for businesses to keep up with the customer is increasingly important considering that U.S. shoppers admit to buying clothes and accessories online an average of 10 times a year. For Gen-Z shoppers, aged 16-24, this number increases to 18 times per year, with nearly a quarter (23 percent) of them admitting to shopping online 1-3 times per month. Millennials are shown to shop online 14 times per year and the 55+ age group, 8 times per year. Considering these millennial and Gen-Z demographics are credit card averse and debt conscious, Klarna delivers an appealing and accessible method for shoppers to take control of their finances in a manageable way.
"We want to provide our customers with the opportunity to get the fashion they love, whenever they want it, and pay for it whenever it is most convenient for them within their budget. Our customers have been requesting this type of payment solution, and we are pleased to be able to partner with Klarna to respond to their requests," said Mark Chrystal, rue21 chief analytics officer, in a statement.