Swedish shopping app Klarna is now allowing consumers to use the buy now, pay later (BNPL) model with gasoline. Users would be able to pay off the price of filling their tanks in four installments over a six-week period, just like the rest of their purchases on the app. A user simply needs to find a gas station in the app, create a $75 digital card, and use it to pay. Any unused funds will be returned to their accounts.
The move comes amid rising gas prices in the United States. It is estimated that the average gas price across the country today is over $4 per gallon, but some states on the West Coast are nearing $5 and $6. People who can't afford to drop over $50 at the pump each time might find the short-term loans useful -- as well as an indication of the problem of rapidly escalating prices for necessary purchases.
Gas Payment Installments
Klarna Allows Consumers to Buy Now and Pay Later for their Gas
Trend Themes
1. Gasoline BNPL - More companies may adopt the BNPL model for gasoline purchases to cater to consumers' reduced purchasing power caused by rising fuel prices.
2. Mobile Gas Payment - Mobile apps that allow payment at gas stations enable consumers to make contactless and convenient transactions without the need for physical cards.
3. Alternative Fuel Payment Options - Innovative payment systems for alternative fuels such as electric charging stations may benefit from the same BNPL model as Klarna's gas payment installment program.
Industry Implications
1. Oil and Gas - Oil and gas companies and stations may benefit from partnering with BNPL providers to offer flexible payment options to their customers.
2. Fintech - Fintech companies providing installment loans or mobile payment solutions can explore new markets such as gas payment installments to diversify their offerings.
3. Mobility Services - Mobility service providers such as car rental companies or ride-sharing services can integrate mobile gas payment options as part of their customer experience.