US-based payments provider Blackhawk Network has formed a new collaboration with Klarna to provide alternative payment solutions for consumers at various retail outlets.

The collaboration will be based on Blackhawk’s payments technology integration with key retail partners and leaders in the fields of grocery, electronics, beauty, and other sectors across the US.

Consumers will be able to use Klarna’s interest-free alternative payment solutions at selected physical retail stores across Blackhawk’s US network.

Klarna head of North America Kristina Elkhazin said: “While online retail is on the rise, consumers today still value the in-store experience and expect the same level of service and convenience everywhere they shop.”

In-store shopping reportedly remained a major mechanism for consumers, representing around 80% of global retail sales last year.

Klarna’s Shopping Pulse Report has also found that grocery is one of the most common in-store shopping items.

Furthermore, a new Klarna research on grocery shopping in the US revealed that 64% of the participants were likely to use buy now pay later (BNPL) for grocery shopping if it was offered.

Grocery shoppers surveyed during the research wished to spend more, shop more often, as well as buy additional food items with BNPL.

This could be tapped by the grocers and other retailers to boost spending and create loyalty by offering increased payment choices and flexibility to the consumers.

Blackhawk Network global commerce head Brett Narlinger said: “During a time of strained budgets and increasing costs, our partnership with Klarna is a significant development for retailers and grocers who are focused on meeting the needs of consumers and enabling them to shop how they want, where they want.

“With Buy Now, Pay Later on a major growth trajectory, the collaboration between Blackhawk and Klarna will provide innovative purchasing options for consumers and retailers.”

Last month, Blackhawk Network announced a partnership with LibertyX to make cryptocurrency more accessible to consumers.

The partnership allows shoppers to buy bitcoin using their LibertyX accounts at certain retailers in Blackhawk’s network.