Tractor Supply Teams With Klarna to Offer BNPL

Rural lifestyle retailer Tractor Supply Company has turned to buy now, pay later (BNPL) provider Klarna to offer customers interest-free installment payments at its stores and online.

“In today’s environment, providing multiple payment options to fit each customer’s unique financial circumstance is more important than ever,” Tractor Supply CFO Kurt Barton said in a news release Wednesday (Nov. 16).

With the partnership, Tractor Supply customers can choose the Klarna button as the payment method at checkout on the Tractor Supply website or by using the Klarna app at Tractor Supply stores. After making the first payment upon confirmation, future payments are automatically collected every two weeks.

The partnership comes as BNPL continues to show strength among consumers — especially younger consumers with less disposable income — as recent PYMNTS research has shown.

The study “Digital Economy Payments: November 2022 U.S. Edition — The Rise Of Mobile eCommerce,” finds that BNPL has seen a fourfold increase in adoption, even as credit and debit cards remain the payment methods of choice for most consumer purchases.

But it’s not just younger, less-affluent consumers choosing to pay in installments. Our studies have also found that nearly half of baby boomers and seniors increased their use of BNPL in the last year, and 71% of BNPL users with incomes greater than $100,000 and who used BNPL options in the last 12 months increased their use in the same time frame.

This week also saw Klarna expand the availability of the search and compare tool within its app to the United Kingdom, Sweden, and Denmark, after rolling out the tool in the U.S. last month.

The new feature, which helps consumers discover the best deals for any product, builds upon Klarna’s acquisition of the comparison-shopping service PriceRunner and gives eCommerce consumers an alternative to Google and Amazon.

Shoppers can also filter the search results by color, size, features, customer ratings, store availability, shipping options, and other characteristics.