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