Klarna and Blackhawk Join Forces to Revolutionize Gift Giving in the UK
Klarna, the AI-powered global payments network and purchasing destination, has formed a partnership with Blackhawk Network (BHN), a prominent global branded payments provider, to introduce Klarna’s Gift Card Store in the United Kingdom. This enables customers to acquire gift cards from a wide variety of retailers and pay for them using Klarna’s Buy Now, Pay Later (BNPL) products and the instant debit option, Pay Now).
This represents Klarna’s inaugural entry into the £7 billion UK gift card market, which is anticipated to expand to nearly £9 billion by 2025, as per the Gift Card & Voucher Association. Klarna’s gift card solutions consist of a barcode that allows consumers to redeem their cards both digitally and in-store, as digital gift cards now account for over 50% of this market market share. The UK introduction of Gift Card Store follows a successful launch in the United States last year, during which retailers such as Airbnb, Uber, DoorDash, and Target were introduced. By the conclusion of 2024, Klarna intends to expand the Gift Card Store to additional European markets.
The Klarna app will enable UK consumers to purchase gift cards from a variety of merchants, such as Airbnb, Argos, Fortnite, adidas, IKEA, Playstation, Deliveroo, H&M, Wagamama, Currys, and Uber. Additional merchants are being introduced on a weekly basis. Gift Card Store also offers a straightforward method for sending gift cards to friends and family, which includes the ability to include a personalized note and schedule delivery.
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Industry Comments
Raji Behal, Head of Western and Southern Europe at Klarna says “Following the success of Gift Card Store in the US, we are super excited to see its roll out in the UK. Gift cards are a staple of gift-giving in the UK and help drive business to retailers large and small. We can’t wait for UK shoppers to discover the convenience of Gift Card Store in the run up to Christmas.”
Anna Uprichard, VP of Commerce at BHN says, “We predict that the gift now, pay later emerging trend is set to grow, with our 2024 Global Gifting research showing 15% of consumers that purchased a gift card, did so through Klarna . By combining our global network of brands and retailers in branded payments with Klarna’s innovative payment solutions, the partnership provides consumers a convenient and flexible way to purchase gift cards. This is especially important as we approach the biggest gift card buying period, Christmas”.
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