PYMNTS-MonitorEdge-May-2024

GameStop Partners With Klarna For BNPL Service

Swedish online payments giant Klarna is making a play for gamers as consumers hunker down at home amid the pandemic.

Klarna announced Monday (Oct. 26) in a press release that it has inked a deal with GameStop, offering customers of the video game retailer access to its buy now, pay later (BNPL) payment system.

The new service will be available both online through GameStop’s website and its app, as well as through its 3,300 brick-and-mortar retail stores in the United States, the companies said in the release.

Under Klarna’s online payments system, customers can buy up front and then pay off their purchase, whether it’s a new video game system or a new pair of sneakers, over four, interest-free installments.

Klarna said in the release that it is teaming up with GameStop after figures culled from its payments’ app showed a 117 percent spike in spending on video game brands after the initial coronavirus lockdown in March.

That included a 180 percent surge in spending on gaming in just one day alone in March, while from March to July, computer software stores saw an average month-over-month jump in spending of 13 percent, according to the release.

In addition, Klarna said it will feature GameStop in its game event series this week called Playing for Keeps, the release stated. The event will feature pro gamers SypherPK and KittyPlays, with fans getting a chance to try their luck against them.

In separate news, Klarna is not the only FinTech ramping up its efforts in the gaming space. Last month, QuadPay signed an agreement to offer GameStop customers access to its own BNPL platform.

“The eSports business has grown tremendously in recent years with the rise of streaming services and other technologies tailored to this space,” said David Sykes, head of U.S. at Klarna, in the Monday release. “Recognizing the continued growth of the gaming community and its increasing influence in mainstream culture, we’re thrilled to introduce Klarna’s flexible payment options to GameStop customers as well as connect with them in a unique and meaningful way through our Playing for Keeps campaign. We also aim to drive new traffic from our 9 million shoppers to GameStop, whether they prefer to shop in-store or online.”

PYMNTS-MonitorEdge-May-2024