Fintech startup Klarna is launching a rewards program called Vibe this summer. If you use Klarna as your payment method, you’ll start earning points for every $1 you spend. You can then redeem your points for gift cards at Starbucks, Sephora, Foot Locker and Uber.
Klarna is best known for its buy now and pay later feature, which lets you pay over four installments with 0% interest. You can think as Klarna as a sort of credit card-alternative payment method as you don’t have to pay for things right away.
Many e-commerce websites have added Klarna as a payment option to increase sales. It can increase conversion rates for expensive purchases in particular.
Choosing Klarna during the checkout process is one way to get rewards. But the company also has a mobile app that acts as a marketplace of stores. You can browse Klarna-friendly stores directly from the Klarna app and track your orders.
It gets interesting as the startup has also developed a way to use Klarna on websites that don’t support Klarna, such as Amazon. You can open the Klarna app, browse the web interface of an unsupported store and pay with a Ghost card.
Klarna generates prepaid cards that can only be used once to process your payments on unsupported sites. You’ll also collect points with those purchases.
The rewards program could boost usage numbers over time. Some users could slowly build a habit of opening the Klarna app when they want to make an online purchase. Vibe users will also be able to participate in various sales. Once again, Klarna positions itself as an alternative to credit cards with the addition of rewards.
The new program will first launch in the U.S. in June and will then be rolled out in other markets in the coming months, starting with Germany, Australia, Sweden and the U.K. Klarna now has 8 million users in the U.S.