Rancourt & Co., apremium leather shoe crafter, and Gravity Blanket, an online seller of weighted blanket and sleep products, are the latest brands to introduce an installment payment option through partnerships with Klarna. Rancourt & Co. was the first U.S. merchant to use the payments platform provider’s recently introduced Slice it in 4 payment offering.
The Slice it in 4 payment option allows consumers to pay for purchases in installments using their own debit or credit card. In the case of Rancourt & Co., “It was clear to us from our analysis and from some initial testing with the split payments option that many of our customers would take advantage of this option immediately,” said Kyle Rancourt, VP of Sales and Marketing at Rancourt & Co.
The new payment option is designed to cater to younger, more debt-conscious U.S. consumers who prefer debit cards over credit cards, with the option to pay online and manage their finances while still being able to make the purchases they want without a long-term credit commitment.
“Our average order value is high, but we also recognized that the time between purchases is longer than average, so giving our customers the option to split up payment over time will hopefully bring them back to our store sooner,” said Rancourt in an interview with Retail TouchPoints.
Using Klarna’s online consumer financing functionalities, shoppers can “Slice it” at checkout and spread the cost of their purchase over time periods ranging from three to 36 months.
The Slice it in 4 offering includes a four-step credit application process so that the retailer can automatically collect four equal payments from the consumer’s chosen method of payment — one installment at purchase and three further payments every two weeks. The plan features no upfront costs or interest and is offered online within the merchant’s existing checkout, creating a frictionless purchase journey with no redirects to other sites.
“We do everything we can to offer an outstanding shopping experience and give our consumers a more convenient and less stressful way to shop,” said Mike Grillo, Co-Founder and President of Gravity Products in a statement. “We believe our products are worth the investment and understand that offering flexible financing options will be integral to our brand success.”