Klarna has launched Vibe, which it claims is the first buy now, pay later loyalty rewards program in the world.
The no-fee program will be rolled out to the US market in June before being extended to Klarna’s other key markets including Australia within the next year.
The move is the next phase in Klarna’s efforts to evolve the shopping experience to deliver inspiration, convenience and even more value.
According to Sebastian Siemiatkowski, CEO of Klarna. “We’re laser-focused on providing our nearly 8 million US consumers with the most convenient, seamless and enjoyable shopping experience possible, from end to end, and the Vibe program builds on our efforts and success.”
He said, “Vibe members have the freedom to shop everywhere and will enjoy access to unique, tailored benefits from hand-picked partners in addition to exclusive offers, deals and other rewards.”
The no-fee Vibe program will apply to all purchases made directly through the Klarna app no matter the store, and also when using Klarna at over 200,000 partner retail stores globally.
Program members will earn one “Vibe” (point) for every $1 they spend, and Vibes can be redeemed for rewards such as gift cards from customer favorites like Sephora, Foot Locker and Uber.
Members can also earn extra rewards if they are already part of an existing loyalty program through the retailer that they are purchasing items from.
Loyalty programs have been a draw for customers for decades, but as the first mover globally in the buy now, pay later space to offer such a program, Klarna is uniquely delivering curated rewards benefits to customers without the fees and high-interest rates often attached when using credit cards and their accompanying loyalty programs.
The company says that it will encourage and reward responsible spending habits, members will be required to complete their payments on time.
Klarna says it developed the Global Vibe program with direct input from customers, who it says indicated they often find traditional credit card loyalty memberships confusing and difficult to navigate and that they wanted more freedom within a rewards program.