TECHNOLOGY

Vertical footwear retailer lets online customers pay in steps

BY Dan Berthiaume

Toms is providing digital shoppers with two new options to buy now and pay later.

The vertical footwear retailer, which sells products through its own website and stores as well as retail partners such as Nordstrom, is deploying an online payment solution from Klarna. Leveraging Klarna technology, Toms now allows web shoppers at online checkout to pay later in either four equal installments or in 30 days. No interest or fees are associated with the flexible payments, and Toms still donates a portion of the purchase to its Giving Fund.

For customers who pay in installments, four equal payments are automatically collected from the consumer’s chosen method of payment. These include one installment at purchase and three further payments every two weeks. Klarna may charge a $10 late fee if an automatic installment payment fails and a customer does not provide an alternative payment method.

According to Klarna, its payment options reduce cart abandonment and increase repeat purchase rates. The solution provider also cites data indicating 75% of shoppers said they would like to pay in installments when shopping, and 35% of Gen Z shoppers worry about trending items selling out before they can purchase them.

“Toms is excited to increase accessibility to our brand with Klarna payment options,” said Ryan Slyper, VP of e-commerce, Toms. “We hope to empower our customers by giving them options on how to make their purchase and choose how that purchase will make an impact. Customers can choose for their purchase to contribute to issues such as safe water, mental health, shoe giving, ending gun violence, homelessness, and equality.”

Other vertical retailers have also recently rolled out Klarna payment solutions to enable online installment payments. These include Rue21 and Abercrombie & Fitch.

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