Rite Aid Adds Klarna’s ‘Pay in 4’ Option to Its Stores

Rite Aid has teamed with Klarna to offer buy now, pay later options at its drugstores.

The collaboration, announced Wednesday (Oct. 16), lets Rite Aid customers use Klarna’s Pay in 4 payment option when making purchases, paying for items in four installments.

“Rite Aid shoppers with a Klarna account now have the flexibility to pay for their purchases over time with no interest, and no added fees as long as payments are made on time,” the companies said in a news release.

“Klarna’s seamless integration with Rite Aid’s in-store checkout process ensures that customers can enjoy greater financial convenience when purchasing a wide range of products, including everyday essentials, health and wellness items, and over-the-counter medicines.”

The buy now, pay later (BNPL) option is not available for some products, including prescriptions or doctor services, the release added. Customers will need to create a Klarna digital card in the Klarna app for use at checkout.

The partnership comes as BNPL continues to gain traction as a payment method, with research by PYMNTS Intelligence finding greater adoption among people facing economic challenges compared to those with a financial safety net.

“Specifically, 26% of those who live paycheck to paycheck with difficulties paying their bills said they were very or extremely likely to use BNPL in the next 12 months,” PYMNTS wrote.

“A slightly lower 21% of those who live paycheck to paycheck without difficulties paying their bills said the same. For consumers not counting on their next paycheck to get by, that share dropped. Only 10% of those who do not live paycheck to paycheck reported that they expected to use BNPL in the next year.”

Meanwhile, PYMNTS spoke earlier this month with Jeanniey Walden, chief marketing and customer officer at Rite Aid, about the company’s transformation following its bankruptcy.

Walden said post-bankruptcy, the company has taken a refined approach to managing its marketing and merchandising efforts by leveraging data-driven decision-making and a greater understanding of how customer behaviors have shifted. “Data is our best friend right now,” she said.

The pharmacy chain’s reinvention strategy involves continuously leveraging this information to optimize operational elements such as store formats and deal with key items like shrink, Walden said.