Swedish financial corporation Klarna is expanding in Canada with the launch of its "Pay in 4" service.
The service lets shoppers split their purchases into four payments. There is no interest added on any payments, and the company says the same goes for any additional fees. Customers make payments every two weeks after their purchase.
The service can be used online, in-store, or through the app. Some of the stores users can use this service at are Harry Rosen, Mejuri, Frank and Oak, and GameStop.
Users shopping through the app will also access loyalty rewards, manage payment options, and track their deliveries.
While the service only applies to companies that have signed on with Klarna at this time, the company says it'll be launching its "Shop Anywhere" feature in Canada soon. Users will be able to split their payments into four at any online store through the app, regardless of whether they're a retailer with Klarna.
"Consumers across the world are moving away from traditional credit models to alternatives that better meet their expectations by offering smarter and more transparent ways to purchase, and the Canadian shopper is no different. Recent Klarna research has found that at least half of Canadian shoppers ages 25-56 are looking for flexible payment options at checkout," Sebastian Siemiatkowski, CEO of Klarna, said in a statement.
The company is also creating a tech hub in Toronto; the first Klarna has created in North America. The hub will focus on a number of sections, including engineering, product management, and analytics.
"The latest news with Klarna is a vote of confidence in our city's thriving and successful technology and innovation sector and an exciting moment for our city as we look to attract more people and businesses to our city," Toronto Mayor John Tory said. "I want to thank Klarna for choosing our city for its expansion into Canada. I look forward to seeing this company grow and succeed."
The plan is to hire at least 500 engineers by 2025 and open offices in Vancouver and Quebec down the road.
Image credit: Klarna