BNPL Goes North - Walmart Canada's Klarna Rollout | Fast Five Shorts

Klarna is set to debut in more than 400 Walmart Canada stores according to Digital Transactions.

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According to Digital Transactions, consumers can choose to pay in full or via installment payments at assisted checkout lanes for purchases of more than $50 Canadian, which is the equivalent of about one pound sterling, isn't it Ben?

I think.

Right?

Just kidding.

All you Canadians, you know I love you.

To use Klarna in one of the stores, consumers can scan a QR code displayed on the point of sale screen at checkout with their mobile phone.

However, Klarna is not available at self checkout lanes at this time.

And finally, let's not forget in another bid to extend its reach inside stores because as of the end of the second quarter, 83.7% of all US retail sales are made in stores.

According to the US Census Bureau, Klarna in June launched the Klarna card, a debit card to aid with in store store purchases.

Ben, as our resident resident from across the pond, I guess I would say are you over or under on 3 years of BNPL becoming the ubiquitous form of payments in stores?

Yeah, I can't see why not.

It's almost ubiquitous online.

So I think this is the latest development in what needs to happen which is to raise awareness that it can happen in store.

I mean this, this is an, an awareness action.

So I mean firstly look it's, I think it's a big sig signal that the Clara Partnership in the US is working well and I think it's smart by Walmart because it's kind of gaining credit in their shopper's eyes for helping them live better for less by ultimately helping them do something that they can kind of already do.

So it's already pretty straightforward to use Kana install.

If you've got the app, you just create a one time card, you drop into your Apple Wallet and you use the Apple Wallet to pay for the product.

That's probably two steps of CX too many for most shoppers, but actually you can kind of do it.

So what Walmart is saying is we're just going to make it really easy for you and the more people that do that, the more awareness it will become and the more it will spread to be common behavior as it already is for millions of shoppers online.

So yeah, I think it's a smart move by am.

It's a smart move by Walmart especially.

When you consider the younger generations too, they have a greater proclivity to use these types of services to the BNPLs.

And what about you?

Are you equally bullish?

Are you taking the under as well?

Are you going over here?

I'm.

I'm doing the over.

You are?

Wow.

I may be completely wrong.

I get that there's millions of people who've said signed up or who have used this a time or two, but it's just taking too long to reach like the adoption that I think it needs to.

And the point that I find really interesting is many credit card companies are taking on the same approach where you can pay in installments with a credit card that's accepted at more places.

You don't have to question whether or not most places that you do your shopping today take visa, American Express, MasterCard, Discover, what have you or a debit card.

And I think that, that, to me is the real interesting point.

You still can't use Klarna every single place that you shop.

And so for me, I'm, I'm curious to see if people start going the route of doing this within their credit card companies where they're still doing the, you know, pay in four installments.

But I just think it's another thing for people to download, another thing that not people.

People haven't done before and aren't familiar with.

And I think credit cards are just too ubiquitous and the credit card companies are to try to capture that, that, that revenue.

Well, I want to make sure I'm clear.

So you're saying.

You're saying the credit cards are going to get the BNPL customer in store?

Yeah, I do.

So then, so okay, but the question was not if Klarna will be.

The question was if BNPL will be over and under three years.

So, so do you.

Does that change your answer at all?

I'm surprised you didn't hedge.

Honestly, I'm surprised you didn't just say, yeah, three years because you always hedge on this show.

You know, you always.

No, I don't.

Over or the under.

I'm gonna.

I'm still.

I don't know.

I feel like still over.

I still, I still don't.

Knowing.

I still don't know about.

I don't know.

I.

It.

It still isn't BNPL payment to me because you're paying with a credit card and then you're deciding after the fact.

So I still would draw a distinction there, but I don't know.

But, but I'm guessing that I'm, I'm alone in this.

In this sentiment.

And that's fine.

I could be very wrong.

But what, why, what.

What are your thoughts?

Are you taking the over, the under?

I don't know.

I was.

You know, when I.

When I first started writing my thoughts on this, I was taking the over.

I was.

I was taking you over because I thought, like, you.

I was like, this is taking too long.

But then I got.

Then I went back and I thought about.

We first heard about bmpo.

I'll never forget where I was.

I was in LA at a conference and I ran to the folks from Sezzle and they told me what it was.

I was like, this is the greatest thing I've ever heard of.

And that was in 2017.

So that's only eight years.

And for me, the cycles of innovation, like in retail, from the moment I see them to, like, when they actually happen.

Now, putting all generative AI aside, because that's just crazy town right now, but it's like 10 years, so, like, you know, three years, that puts me in 2028.

So that would be 11 years from when I first saw it.

So anyway, you do the math.

I'm taking the under, and that's what I'm taking.

The one caveat I have is I think there's some financial dynamics to the model, too, in terms of how.

How the whole thing works and on what categories.

It works too, for the profitability of.

Of the BMPL providers as well.

That's something that has to be taken into account, which I don't know that everyone's cracked the code on yet.

Walmart probably has the ability to do that because it can.

You know, it has the entire swath of general merchandise in which it can afford this differently than others can, say, grocers.

But I'm still.

I'm still taking the under.

Especially now that you gave me this whole thing about the credit cards getting into it.

Yeah, why not?

I'm taking under.

All right.

All right.

Riding and dying with under.

Not surprised.

Yesterday on the plane, we had a bet because we flew, for those listening, we flew from LA to.

No, we flew from San Diego to la.

Shortest flight I've ever taken.

The guy next to me.

We had a bet on how long it would be from wheels up to touchdown.

24 minutes.

That's how long it was, 24 minutes.

I took the under, he took the over.

I lost that one, too.

So.