Gap Inc. is introducing Klarna’s payment services across its US portfolio, giving shoppers more flexibility at checkout.
Customers at Old Navy, Gap, Banana Republic, and Athleta can now choose to pay upfront or split their purchases into four interest-free installments, both online and through the brands’ mobile apps.
The move adds to Klarna’s growing footprint, which now includes more than 26 million US users and over 724,000 global merchant partners.
For Gap Inc., the deal underscores an effort to broaden payment choice at a time when the company is working to win back customers.
“We are excited to offer our customers more choice, convenience and control by offering a variety of payment options across our portfolio of brands,” said Kevin Meiners, head of loyalty and payments at Gap Inc.
Gap already accepts Apple Pay, Afterpay, and other digital wallets. Its tie-up with Klarna follows the recent launch of Gap’s global fall campaign spotlighting low-rise denim and featuring girl group Katseye, with Kelis’ early-2000s hit Milkshake serving as the soundtrack.
The campaign has drawn positive feedback, even as the retailer reported flat second-quarter sales and a 1% increase in comparable store sales. Inventory rose 9% year over year, driven by tariffs and efforts to accelerate imports ahead of duty hikes.
For Klarna, the Gap Inc. announcement comes on the heels of its debut on the New York Stock Exchange.
The buy now, pay later provider is pushing to become a standard option at checkout, with Walmart slated to add Klarna’s services later this month.
Chief Commercial Officer David Sykes said the company’s ambition is to make Klarna “ubiquitous.”
The growth reflects wider consumer trends. Research indicates younger shoppers are increasingly relying on buy now, pay later tools as an alternative to traditional credit cards.
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