Commonwealth Bank aligned Swedish Buy Now Pay Later company Klarna today announced a partnership with loyalty program Flybuys, allowing Flybuys members to collect rewards points when purchasing with Klarna.
For every dollar repaid, members of the Klarna rewards club receive one “vibe”, which can then be converted to 3 Flybuy points. The partnership, set to launch in May, is a first for Flybuys in venturing into the BNPL space, and may encourage a younger demographic of fintech users to join Australia’s oldest loyalty program.
According to Flybuys CEO, John Merakovsky, (pictured) “This partnership with Klarna opens up new opportunities for our members to collect points, and even more ways to be savvy with their shopping and be rewarded for it. We’re incredibly proud to welcome Klarna into the fold as our first buy now, pay later partner.”
Flybuys members will be eligible to collect 1,500 bonus Flybuys points after joining the Klarna rewards club and making their first repayment. As consumer behaviour has transformed away from brick and mortar shopping to the online marketplace, Fintechs like Klarna have had to respond to offer shoppers a suite of options in terms of how they shop and how they pay.
Fran Ereira, General Manager for ANZ, Klarna, (pictured) said: “Shoppers want more flexibility in payment options so they can get what they want now, but they also want to be rewarded for taking this option. Klarna’s partnership with Flybuys rewards both our customers by tripling their points collection and rewards potential.”
As the vibes can be collected and converted to Flybuys points only upon repayment, the program encourages responsible shopping.
As James Hickson, CEO of the small business lender Bloom told Which-50 recently, “Lending money is easy, it’s a great business. Getting cash back can be hard.”
With the incentive to triple rewards points, Flybuys and Klarna say their partnership encourages users to make their repayments sooner rather than later.
Commbank bank initially invested US$100 million in Klarna in August 2018, to become its exclusive partner in Australia and New Zealand. In January 2020 the bank announced it was tipping in another US$200 million, at the same valuation as the previous investment, “to increase strategic alignment, bring additional rights, and gain exposure to Klarna’s international growth.”