Cozey, a direct-to-consumer furniture brand, has integrated Klarna’s buy now, pay later (BNPL) options on its online platforms in the U.S. and Canada. This development provides new payment flexibility to customers who shop Cozey’s eCommerce site. By introducing multiple Klarna payment methods, consumers can now opt for either immediate full payments, Pay in 4 installments, or financing for greater purchases. The move aims to cater to diverse customer needs and enhance their purchasing experience, particularly for those who value affordability in high-quality furniture purchases.
Both companies view this collaboration as an expansion opportunity within the high-value furniture market. Historically, BNPL solutions have been gaining traction in various retail sectors, reflecting a consumer shift towards more flexible payment options. Klarna has strategically increased its affiliations to cater to this rising demand, and its collaboration with Cozey signifies an entry into furniture, a segment with notable customer expenditure. Coupled with Cozey’s mission to simplify the shopping experience, Klarna’s approach aligns to further drive consumer engagement and reach.
What Payment Options Are Available?
Cozey customers now have access to Klarna’s payment solutions: Pay in Full, Pay in 4, or Financing options. These provide flexibility in managing expenditures based on individual financial situations.
“At Cozey, our mission has always been to simplify furniture shopping and make high-quality design accessible to everyone,”
remarked Dominic Létourneau, Cozey’s CFO and COO.
How Does This Partnership Benefit Klarna?
For Klarna, partnering with Cozey is seen as a pathway to broaden its influence in the North American market, particularly in the furniture sector with high AOV. Klarna’s head of Canada, Steven Clarke, emphasized this point, saying,
“We’re thrilled to partner with a brand that shares our customer-first approach.”
This sentiment illustrates Klarna’s ongoing commitment to expanding its retail partnerships.
Recent data reflect Klarna’s growth trajectory, displaying an annual increase in both its active users and merchant base. Reporting a 43% growth in the U.S. and expanding to 850,000 merchants, Klarna demonstrates its rising presence and adaptability within evolving retail environments. This expansion into furniture is one among many steps Klarna has taken, including partnerships with companies in varied industries, such as Lufthansa, evidencing its diverse market reach.
The impact of BNPL access also shifts consumer purchasing decisions. Data from PYMNTS indicates that a significant portion of consumers (43%) might not proceed with a purchase if BNPL is absent, suggesting that availability of flexible payment options plays a decisive role in the consumer journey. Furthermore, consumers exhibit behavioral changes in how they manage finances when these options are available, often opting for superior-quality items without immediate financial burden.
The collaboration between Cozey and Klarna amplifies an ongoing trend in retail, where payment flexibility is critical to enhancing consumer satisfaction. By employing Klarna’s BNPL options, Cozey not only gains a competitive edge but also aligns itself with evolving consumer payment preferences. This partnership illustrates an increased interest within consumers for accessible and manageable financial solutions.
