After acquiring the assets of the now-defunct New Zealand-based buy now, pay later (BNPL) firm, Laybuy, AI-powered global payments network and shopping assistant Klarna has revealed plans to relaunch the service.
Laybuy, which went into administration in June earlier this year, is now preparing to make its return in New Zealand under Klarna. By leveraging Klarna’s expertise and global presence, New Zealand consumers and merchants will hope to benefit from a revitalised platform with enhanced payment flexibility and user experience.
“Laybuy established itself as a cherished brand in New Zealand and we’re excited to build on those foundations to take Laybuy to new heights under the Klarna umbrella,” explained David Sykes, chief commercial officer at Klarna. “We have some truly exciting plans and can’t wait to begin sharing them with consumers and merchants.”
It appears that the deal does not include the purchase of any of Laybuy’s assets outside of New Zealand, such as in the UK, which had also boasted around half a million active customers at its peak. Klarna has already begun contacting Laybuy customers, informing them about the next steps for the payment provider.
Laybuy served customers and merchants with no-interest, flexible payment options since its launch in 2017. Over half a million consumers in New Zealand have opened a Laybuy account, enabling them to shop at over 10,000 Laybuy merchants.
New beginnings?
After Laybuy failed to attract a suitable buyer to save the firm earlier this year, founder Gary Rohloff explained how the extended period of economic downturn in New Zealand and the UK had impacted the company: “As a result, we have seen reduced consumer spending, higher credit losses, and increased fraudulent activity. This alongside increased financing costs created a perfect storm that was difficult to recover from.”
But now, Klarna is breathing new life into the BNPL firm, with it expected that it will continue to operate under the Laybuy brand, but will move all of its customers onto Klarna’s books.
The news comes as Klarna moves closer to a US IPO, and shortly after it announced it plans to “disrupt retail banking” with the launch of two new banking products.
Klarna ‘balance’ will enable consumers to store money in a Klarna ‘account’, adding money directly from their bank account, receiving cashback rewards for shopping in the Klarna app, or receiving refunds from returned items.
Meanwhile, a new ‘Cashback’ offering will enable shoppers to earn a percentage of purchases back at participating retailers, with the money stored in their Klarna ‘balance’ account.
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