Klarna, a leading global retail bank, payments and shopping service, today announced an expansion of its partnership with ContextLogic Inc. (d/b/a Wish) (NASDAQ:WISH), one of the world's largest mobile e-commerce platforms. The partnership, which will initially allow flexible payment options to consumers in the US, is part of a broader drive by Wish to expand 'Buy Now, Pay Later' (BNPL) offerings to its users across its platform.
Through the partnership, Wish users in the US will be able to split the cost of their purchase over four interest-free payments through Klarna's Pay in 4 solution. Users are required to pay the first 25% of the transaction at checkout, while the remaining three payments are automatically collected every two weeks.
Klarna's Pay in 4 solution gives Wish users a greater level of choice and flexibility. Klarna and Wish will deepen their partnership in 2022, rolling out alternative payment options to additional users in the EU, including in Italy, Spain and France, and in the UK, Australia and Canada, among other countries.
"We're thrilled to expand our longstanding partnership with Klarna to give our US customers a greater level of freedom to shop and pay for their items when and how they want," said Tarun Jain, Chief Product Officer at Wish. "This partnership furthers our mission to bring an affordable, accessible and entertaining shopping experience to millions of our customers around the world."
One of the largest e-commerce marketplaces in the world, Wish has 90 million monthly active users in more than 100 countries, and partners with 550,000 merchants across the globe. The company offers a discovery-based mobile shopping experience through a curated product feed that is personalized for each shopper.
"Our Pay in 4 solution is all about giving consumers more financial flexibility and control over their spending, so this partnership will come as welcome news to Wish shoppers," said David Sykes, Head of North America at Klarna. "We're excited to deepen our relationship with Wish in the US to offer even more customers a frictionless way to shop online."
Klarna and Wish initiated their partnership in Europe in 2014, with the introduction of a variety of Klarna's flexible payment options across six European countries, including the UK, Germany, and the Netherlands.