Target, Simon Add New BNPL Options Ahead of Expected Holiday Surge

Payments Tech Guide: How to Keep Up with Demand for Convenience, Contactless and BNPL

Buy now, pay later (BNPL) is primed for growth during the holiday season as retailers and providers ink new deals and expand their networks. The key expansions include Target adding Sezzle and Affirm to its payment options; Simon enabling Klarna for interested merchants at any of its shopping centers; and FreedomPay integrating Klarna into its platform to provide more brick-and-mortar retailers access to BNPL options.

Target is emphasizing flexibility in its rollout of new BNPL options. Sezzle is aimed at shoppers making smaller purchases, such as party supplies or gifts, while Affirm is for purchases over $100. Additionally, Sezzle can be used with Target’s same-day fulfillment services, including store pickup and Shipt delivery, and in-store via Apple Pay or Google Pay. The new BNPL options join AfterPay, which Target added earlier this year.

“We know our guests want easy and affordable payment options that work within their family’s budget,” says Gemma Kubat, President of Financial and Retail Services at Target in a statement. “Through our partnerships with Affirm and Sezzle, Target is investing in new financial tools that make our shopping experiences more flexible and personalized to guests’ needs, right in time for the holiday season.”

Simon’s multi-year partnership with Klarna will give all retailers in Simon properties the opportunity to add Klarna as a payment option, adding a modern touch to mall shopping. Klarna also will offer its performance-based digital marketing capabilities to participating merchants and will collaborate with Simon on marketing campaigns, in-mall activations and communication programs to raise awareness with shoppers. 


“Identifying ways that support the success of our merchants while elevating the customer shopping experience are key priorities for Simon,” said David Simon, Chairman, CEO and President of Simon in a statement. “By aligning with Klarna, we’re giving our retail tenants an important advantage this holiday season and well into the future: a unique way to attract new audiences already embracing the convenience that Klarna’s interest-free payment options provide.”

Klarna will further expand its presence through its integration with FreedomPay. Shoppers can check out using Klarna at retailers that use FreedomPay by downloading the Klarna app and performing a one-time registration to generate an in-store QR code that can be scanned by an associate.

“In today’s retail environment, and as shoppers head in-store, point of sale is much more than a transaction — it’s a critical piece of the consumer shopping experience,” said Chris Kronenthal, President of FreedomPay in a statement. “Together, Klarna and FreedomPay are enabling retailers to create this next-level in-store shopping experience by bringing even greater variety, flexibility and functionality to payments and checkout options, just in time for the holidays.”

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