Klarna is expanding in-store with lululemon, launching flexible payments in the athleisure retailer’s UK and German stores.

Klarna and lululemon have been offering shoppers flexible payments online for over five years, with the move in-store aiming to offer customers the same flexibility when making bricks-and-mortar purchases.

Klarna said bringing its payment options to the physical till is “a natural next step” and marks a significant step in its push into physical retail. Reflecting Klarna’s strategic move beyond the browser, in-person spending is now estimated to be worth $28trillion a year globally – nearly four times the amount spent online. 

“Shopping shouldn’t be less flexible the moment you walk into a store,” said Klarna’s Chief Commercial Officer, David Sykes.

“We’ve spent years making online checkout smarter, and now we’re bringing that same freedom to the till. Whether you’re picking up your kit in person or ordering it online, you should be able to pay the way that best works for you.”

Flexible finance at in-store checkout is increasingly being demanded by customers, according to data from Lloyds Merchant Services.

Its research of 2,000 UK shoppers showed nearly two thirds (61%) of consumers are more likely to shop with a retailer offering Buy Now Pay Later (BNPL), rising to 63% for point-of-sale (POS) finance. Merchants are taking notice of these changing preferences, with 84% seeing growing demand for BNPL and 87% for POS financing options.

Klarna is available now in-store at lululemon in the UK and Germany, and is enabled through lululemon’s integration with payments platform, Adyen.

To access Klarna payments in-store, shoppers scan a QR code at the checkout with their phone and pay using the Klarna app, allowing them to spread the cost of their purchases into interest-free payments or delay payment for a month.