Through this collaboration, Klarna introduces its flexible payment options to US travellers, allowing them to book flights and accommodations using its interest-free Pay Now or Pay in 4 options across Expedia.com/Klarna and Hotels.com/Klarna. This expansion follows successful launches of Klarna in the UK, Germany, Finland, and Sweden.
In the official press release, representatives from Klarna expressed enthusiasm about the partnership, highlighting the benefits of offering flexible payment solutions to modern travellers. By providing options to Pay Now or Pay Later with Klarna, the aim is to enhance financial accessibility and improve the booking experience for US consumers.
Representatives from Expedia Group talked about the collaboration's role in offering increased flexibility to travellers when booking their trips. This partnership aligns with Expedia Group's commitment to enhancing the traveller's journey through innovative technologies.
The US travel and tourism market, projected to generate nearly USD 200 billion in 2024 according to Statista, underscores the significance of this partnership in the context of the industry's recovery from the COVID-19 pandemic. As consumers seek value and flexibility in trip planning, partnerships like this aim to meet evolving demands. Statista also reveals that the hotel market is the largest in the field and is expected to reach a projected volume of USD 110.50 billion in 2024. Moreover, by 2028, the number of users in the hotel market is expected to reach 167.50 million users.
The user penetration rate is projected to increase from 67.5% in 2024 to 69.3% in 2028, while the average revenue per user (ARPU) is estimated to be USD 0.86k. By 2028, 72% of the total revenue in the Travel & Tourism market is expected to be generated through online sales. In terms of global comparison, the United States is projected to generate the highest revenue in the market, with a revenue of USD 198.70 billion in 2024.
In April 2024, Klarna revealed its plans to introduce its credit card in the US in a bid to expand its market presence. The decision was made on customer demand, with Klarna aiming to allow individuals to leverage its services and enable them with additional payment capabilities.
At the time of the announcement, Klarna enabled US-based consumers to apply for the credit card, opening a waitlist for them. Klarna partnered with WebBank to issue the cards, with the latter being under a licence from Visa US. Initially launched only in Europe, the Klarna credit card allows individuals to shop everywhere Visa is accepted, with them being able to manage their purchases individually in the company’s app.
For more information about Klarna, please check out their detailed profile in our dedicated, industry-specific Company Database.
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