Walmart Canada Unveils Interest-Free Buy Now, Pay Later Option

Published 6 months ago

Walmart Canada has launched a new interest-free Buy Now, Pay Later (BNPL) option for its online shoppers. The new facility, powered by Klarna, is available on the Walmart Canada website and mobile app.

Laurent Duray, Chief E-commerce Officer at Walmart Canada, stated that the BNPL option is their latest effort to provide more payment flexibility to customers. This move comes amidst a surge in demand for such payment methods in Canada, with annual growth of 51.6% and projected to reach US $2.13 billion by the end of 2023, as per a report by Research and Markets.

The BNPL Option: How it Works

The BNPL service allows customers to split their purchases into four interest-free payments over a six-week timeframe. If payments are made on schedule, no additional fees will be applied.

Steven Clarke, Head of Canada at Klarna, welcomed Walmart Canada to Klarna’s network of over 500,000 global retail partners, noting the growing demand among Canadian consumers for convenient, interest-free payment alternatives.

Additional BNPL Features

To ensure customers adhere to their payment plans, Klarna sends email reminders and in-app notifications. The Klarna app also includes budgeting tools and restricts usage if payments are missed, helping to prevent debt accumulation.

Setting up a Klarna account is simple, requiring only basic information. Once the account is created, customers can choose Klarna as their payment method during checkout at Walmart. Each purchase undergoes a real-time lending decision, safeguarding the customer’s credit score.

The service offers clear payment schedules, allowing customers to align payments with their pay cheque schedules. The BNPL option covers orders ranging between $50 and $4,000, with some restrictions, enabling customers to purchase a variety of items from home goods and electronics to apparel.

This new payment option comes just in time for the Black Friday sales and the upcoming holiday season.

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