Klarna, the leading global payments provider and shopping service, today announced that it is launching a customer loyalty program called Vibe this summer, becoming the first buy now, pay later service provider to offer a rewards program. The no-fee program will be rolled out to the US market in June before being extended to Klarna’s other key markets of Germany, Australia, Sweden and the UK within the next year. The move is the next phase in Klarna’s efforts to evolve the shopping experience to deliver inspiration, convenience and even more value.
“We’re extremely proud to be the first company in the buy now, pay later space to offer a personalized rewards program,” said Sebastian Siemiatkowski, CEO of Klarna. “We’re laser focused on providing our nearly 8 million US consumers with the most convenient, seamless and enjoyable shopping experience possible, from end to end, and the Vibe program builds on our efforts and success. Vibe members have the freedom to shop everywhere and will enjoy access to unique, tailored benefits from hand-picked partners in addition to exclusive offers, deals and other rewards.”
The no-fee Vibe program applies to all purchases US Vibe members make directly through the Klarna app no matter the store and also when using Klarna at over 200,000 partner retail stores globally. Program members earn one “Vibe” (point) for every $1 they spend, and Vibes can be redeemed for rewards such as gift cards from customer favorites like Starbucks, Sephora, Foot Locker and Uber. Vibe members will have access to exclusive online and offline sales and shopping experiences and can even earn an extra layer of rewards if they are already part of an existing loyalty program through the retailer that they are purchasing items from.
Loyalty programs have been a draw for customers for decades, but as the first mover globally in the buy now, pay later space to offer such a program, Klarna is uniquely delivering curated rewards benefits to customers without the fees and high interest rates often attached to credit cards and their accompanying loyalty programs. To encourage and reward responsible spending habits, members will earn Vibes once their payments are completed and paid on time. Klarna developed the global Vibe program with direct input from customers, who said they often find traditional credit card loyalty memberships confusing and difficult to navigate and that they wanted more freedom within a rewards program.
The Klarna app in the US has been downloaded more than 4.4. million times and this year alone, the app has outpaced all of its competitors with more than 1.7 million downloads.