Swedish buy-now-pay-later platform Klarna is expanding its service to Canada and has plans to set up shop.
Starting today, Canadian shoppers can pay using Klarna’s “Pay in 4” service online, in-store and via the Klarna app while checking out with Klarna’s integrated retail partners including Canadian brands Harry Rosen, Mejuri, and Frank And Oak.
With “Pay in 4,” consumers who use Klarna at a retail partner’s checkout will be able to split their purchases into four interest-free payments paid every two weeks from the time of purchase, benefiting from greater transparency, financial control and choice.
“Consumers across the world are moving away from traditional credit models to alternatives that better meet their expectations by offering smarter and more transparent ways to purchase, and the Canadian shopper is no different. Recent Klarna research has found that at least half of Canadian shoppers ages 25-56 are looking for flexible payment options at checkout,” said Sebastian Siemiatkowski, Co-Founder and CEO, Klarna.
With its expansion into the Canadian market, Klarna will open its first North American product development and tech hub in Toronto, with plans to hire 500+ engineers by 2025.
Klarna will also continue its recruitment efforts from coast to coast, with plans to open offices in Vancouver and Quebec in the future.
With these developments, Klarna is investing in Canada’s economic recovery by tapping local talent and partnering with local academic institutions to help develop a skilled workforce that will deliver new innovative solutions, and, in turn, help other businesses thrive and grow.
“As Toronto looks to rebuild itself post-pandemic, attracting businesses from all over the world will play a big role in boosting our economy and creating more jobs. The latest news with Klarna is a vote of confidence in our city’s thriving and successful technology and innovation sector and an exciting moment for our city as we look to attract more people and businesses to our city. I want to thank Klarna for choosing our city for its expansion into Canada. I look forward to seeing this company grow and succeed,” commentsMayor of Toronto John Tory.