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October 3, 2022

Klarna teams up with CellPay to expand BNPL options

Swedish buy-now-pay-later (BNPL) solutions provider Klarna has forged an alliance with fintech firm CellPay to provide consumers with new payment options.

As part of the tie up, CellPay will offer Klarna’s interest-free ‘Pay in 4’ option to consumers in the US who are buying its prepaid cell phone minutes.

The payment option will be available during checkout and will allow CellPay consumers to divide their payments into four instalments.

The instalments, which will not levy any additional interests, will span across a period of six weeks.

A recent survey showed that BNPL plans are increasingly changing consumer behaviours with nearly 20% of customers in the US currently use the option.

In a statement, CellPay said: “This is the first time US customers, especially underbanked, will be able to pay for prepaid cell phone minutes over time, allowing them to keep connected with their loved ones with greater flexibility.

“Interest-free Buy Now, Pay Later is a smarter, fairer alternative to high-interest credit and gives consumers the flexibility and convenience to manage their money and budget.

“When a CellPay customer splits the cost of their purchase into four smaller payments with Klarna, they will never pay any interest ever.”

The latest partnership comes shortly after a Bloomberg report that highlighted Klarna’s plan to reduce its headcount as it restructures parts of its business.

The move aligns with the company’s plan to operate as a slow-growing and smaller business.

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