Macy’s Leads Department Stores in the Buy Now, Pay Later Race

Macy’s is turning its focus to extra-affordable shopping.

Yesterday, Macy’s said it invested an undisclosed amount in the buy now, pay later (BNPL) service Klarna. In exchange, Macy’s shoppers can divide their next throw blanket purchase into four interest-free payments.

Why now: As part of a mid-pandemic intervention reinvention, Macy’s is doubling down on services that prioritize affordability.

  • In a recent interview, CEO Jeff Gennette said Macy’s four million new online shoppers in Q2 had requested flexible payments (among other overdue updates).
  • Budget-friendliness resonates well with Macy’s existing customers. Its off-price chain, Backstage, will open more stores this year. 

Zoom out: Klarna’s rival BNPL providers have signed up droves of new merchants this summer. But department stores, as usual, have been slow on the uptake—making Macy’s one of the few to offer a fintech-powered installments service. 

  • One example I could track down: Dillards 🤝 Afterpay.

Via Morning Brew

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