Klarna

Uncertainty over how BNPL companies can make money in the long run, high interest rates and concerns over luring shoppers into unwise debt levels are factors this sector has to grapple with.

Tools and services are helping fashion and beauty industries stem the billions of dollars they reportedly lose due to abandoned carts by taking the friction out of the checkout stage, online and off.

Concerns are growing that the boom in short-term financing that has fuelled apparel sales is saddling a growing number of vulnerable shoppers with debt they can’t pay. But the concept can still benefit brands, lenders and consumers, with a few key changes.

Stripe and Klarna have transformed payments in the west, but fintech providers like PayU, M-Pesa and PhonePE can help drive e-commerce in rapidly growing emerging markets.

Paying for purchases in instalments has quickly become ubiquitous online. But Klarna, Affirm and the other fintech players that dominate the space have loftier goals.

BoF sits down with Klarna CEO Sebastian Siemiatkowski to discover innovations in the path to purchase and why, for retailers, ‘it is really about daring to iterate and quick integration.’

As their usual sources of sponsorship evaporate, fashion brands presenting new collections at both digital and physical runway shows must reconsider how they offer value to partners.

The fashion marketplace sold record levels of merchandise and cut down on its losses as luxury shoppers pivoted online.

Consumers have flocked to services that allow them to pay for their online orders over a period of weeks, months or even years. Brands hope these plans will encourage customers to spend more — but a looming recession could test the business model.

The troubled retailer could once again be reborn. But this time, it’s going to take a drastic overhaul to get the business back on track.