Shoppers at Simon malls like King of Prussia Mall, Montgomery Mall, and Philadelphia Premium Outlets will have in-store payment options when they shop this holiday season.
Simon has established a multi-year relationship with global financial technology company Klarna, which offers unique flexible in-store payment and digital marketing solutions.
Under the deal, consumers can “buy now, pay later” from participating merchants at Simon-owned malls, starting November 1.
Klarna’s in-store payment methods allow shoppers to pay in-store, interest-free. The company offers a number of payment options, including direct payments, post-delivery payment and installment plans, including its “Pay In 4” program.
“Identifying ways that support the success of our merchants while improving the customer shopping experience are key priorities for Simon,” said David Simon, chief executive officer and president of Simon, in a statement. “By partnering with Klarna, we are giving our commercial tenants a significant advantage during the holiday season and into the future; a unique way to attract new audiences who are already enjoying the convenience offered by Klarna’s interest-free payment options.
As the program kicks in, shoppers will see Klarna banners and communications in Simon malls explaining how they can use Klarna in-store. They can also benefit from exclusive offers and discounts from participating merchants if they buy through Klarna at these physical outlets, the company said.
Additionally, merchants will benefit from a variety of digital marketing capabilities offered by Klarna that will enable them to better understand their customers and improve the shopping experience for their customers.
Participation in the new initiative is optional for traders. Klarna, which was founded in 2005, has more than 250,000 business partners in 17 countries. The company said it has seen “positive results” with merchants who carry Klarna in-store. One example shared by the company in an email response to questions was Sephora, which Klarna said saw a 65% increase in the average order value at its stores in North America with Klarna.
According to Klarna’s just released Holiday 2021 report, 34% of shoppers surveyed said malls were the most popular place to shop this holiday season, and shoppers with the lowest budgets, in addition, said. more important are twice as likely to seek flexible payment options.
The company said that by leveraging in-store payment solutions and digital marketing capabilities, Simon and his merchants can “increase foot traffic to their stores and provide them with more engaging experiences” ahead of the holiday shopping season. .
“Simon connects millions of consumers with merchants in a truly meaningful and engaging way who reinvents experiences far beyond expectations every day,” Sebastian Siemiatkowski, CEO of Klarna, said in a statement. “With recent information indicating that retail traffic is set to exceed 2019 levels again, we are excited to partner with Simon to further unlock in-store revenue and retailer loyalty, and provide customers with even more ways to shop and pay as they wish. want to.”
Throughout the pandemic, online shopping has increased, leading to demand for alternative payment services like Klarna, the company said. While online shopping will remain strong, a recent Klarna survey of more than 40,000 consumers in the United States indicates that physical retail – the in-store experience – remains a “high priority for shoppers.”
The study found that brick-and-mortar stores have an instant gratification advantage over online retailing, with younger consumers appreciating the speed and efficiency of in-store purchases.
Klarna’s flexible payment options will be made available to buyers at participating merchants at all Simon properties in the United States, including 10 Pennsylvania malls. Properties that are rolling out the initiative include: King of Prussia Mall in Upper Merion; Montgomery Mall in Montgomery Township; Philadelphia Premium Outlets in Limerick; Lehigh Valley Mall in Whitehall; Philadelphia Mills northeast of Philadelphia and five other properties across the state.
“By partnering with Klarna, we are giving our tenant merchants a significant advantage during the holiday season and into the future. – David Simon, President, CEO and President, Simon
As part of the multi-year national alliance, Klarna and Simon are working on other strategic initiatives, which will be announced and rolled out in the future.
Klarna’s business partners include: H&M, IKEA, Expedia Group, Samsung, ASOS, Peloton, Abercrombie & Fitch, Nike and AliExpress. The company has 90 million active customers – 15 million in the United States – and processes 2 million transactions every day, according to the company’s website.
Simon is a real estate investment trust that owns shopping, dining, entertainment and mixed-use destinations, as well as S&P 100 Simon Property Group. The trust has properties in North America, Europe and Asia.