Klarna Opens Pay-Later Offerings to Canadian Apple Pay Users

Klarna says its pay later options are now available to Apple Pay users in Canada.

The Swedish payments company announced the new integration Wednesday (Dec. 11), saying it was available online and in apps for iPhone/iPad users with iOS 18 and iPadOS 18 or later.

According to a company news release, Klarna is the first buy now, pay later (BNPL) operating on Apple Pay in Canada. The service began operating on Apple Pay in the U.S. and U.K. in October.

“After the great reception we received from consumers in the US and UK last month, consumers in Canada will now have easier access to our fair, flexible and interest-free payments options when checking out on Apple Pay online and in apps,” said Sebastian Siemiatkowski, Klarna co-founder and CEO. “This is another big step toward our mission to offer consumers Klarna at every checkout.”

Klarna’s BNPL options include “Pay in 4,” which gives consumers four fixed repayments for purchases all interest-free on eligible purchases. The company also offers financing for higher-ticket items, with monthly repayments over a longer stretch of time with competitive APRs.

The launch comes amid a holiday season in which the availability and visibility of financing options like BNPL can have an impact on consumer spending, as covered here recently.

The PYMNTS Intelligence/Splitit report “Maximizing Holiday Value: The Strategic Value of Early Pay Later Visibility” shows how merchants who present these options early in the shopping process can boost their chances of seeing larger purchases and attracting more customers.

The timing of when financing options are first presented to shoppers plays a key role in determining their purchasing decisions. According to the report, a little more than three-quarters of consumers choose to use BNPL options before making a purchase, underlining the importance of presenting these options upfront.

More to the point, 27.1% of consumers said they would be more likely to buy higher-priced items if pay later options were offered early in the shopping process. In addition, 26.9% of shoppers said they’d purchase more items, and 26.7% would pay full price rather than waiting for a sale, just because BNPL was offered upfront.

“This data highlights how early visibility of payment plans boosts consumer confidence, encouraging shoppers to make larger purchases,” PYMNTS wrote. “By providing financing details at the start of their shopping journey, merchants can stimulate bigger basket sizes and higher-value transactions, particularly in categories where consumers may hesitate to spend without clear payment options.”