Klarna, an AI-powered global payments network and shopping assistant, has released data on its launch of cashback.
In the six weeks since launch:
- 506,378 Klarna shoppers have earned $2.7m dollars in cashback.
- Klarna merchants have given cashback on $98.4m worth of sales.
- Over 1,000 cashback promotions have been launched.
As mentioned in the announcement from the international payments Fintech, Klarna had launched cashback in 12 countries simultaneously on 15 August, in order to reward consumers who shop in the Klarna app.
Klarna explained that shoppers are reportedly able to earn a certain percentage of their total purchases at participating retailers, and the money is stored in their Klarna ‘balance’ account.
Erin Jaeger, head of North America for Klarna said that the take-up has been steady.
Erin added that cashback is driving a considerable uptick in overall conversion and revenue for their merchant partners, and consumers are said to be “earning money while they shop… and after they stop.”
Over the past few years, online and physical retailer outlets have introduced a wide range of incentives in order to attract and retain existing customers. With the fast-evolving digital commerce market, many more consumers and businesses are seeking more competitive and intuitive experiences. To cater to this growing demand, Fintechs like Klarna continue to innovate and better serve clients across the world.
While e-commerce sales are surging rapidly, many people still appreciate in-store shopping experiences as well. In order to accommodate the modern consumer, merchants and service providers are offering many ways to complete transactions including the rise in contactless payments and more flexible buy now pay later (BNPL) payment solutions.
As stated in the update from Klarna, at the time of launch, rates are said to have been varied between 1% and 10%.
But as merchants observed solid initial results, many have now increased their cashback rates, with some even “doubling them.”
Additionally, Klarna now reportedly supports “boosted rates,” which enables merchants to temporarily raise their rates to “support specific domestic campaigns” as well as important retail moments.