Klarna Expands In-Store Payments to 300+ GARAGE and DYNAMITE Locations Globally

Klarna has expanded its partnership with apparel brands GARAGE and DYNAMITE to launch in-store payment options across North America and the United Kingdom. For fintech professionals, this move signals the continued aggressive migration of Buy Now, Pay Later (BNPL) providers from e-commerce checkouts into high-street physical retail environments.

What was announced

The expansion brings Klarna’s flexible payment solutions to more than 300 physical retail locations across Canada, the United States, and the United Kingdom. While the brands previously offered Klarna for online transactions, this update allows customers to access the same financial flexibility during in-person shopping trips for seasonal essentials and wardrobe refreshes.

The in-store mechanism is designed to be frictionless, mirroring the digital experience. At the point of sale, shoppers use their mobile devices to scan a QR code. This action triggers the Klarna app, where the customer can choose to pay the full balance immediately or split the cost of eligible purchases into interest-free installments. This integration aims to provide a unified omnichannel experience, ensuring that the choice and control consumers have grown accustomed to in digital browsers are available in the fitting room.

The rollout is strategically timed to capture consumer spending ahead of the critical Fall shopping season. By bridging the gap between digital and physical channels, the brands are targeting a more seamless customer journey that accommodates various payment preferences at the final point of purchase. The service is now live and available to all shoppers visiting GARAGE and DYNAMITE stores in the three specified regions.

"Expanding Klarna into our stores gives customers more flexibility and choice at checkout, while creating a consistent experience across our digital and physical channels. We are excited to introduce this added convenience ahead of the important Fall shopping season."

Stacie Beaver, President and Chief Operating Officer of Groupe Dynamite.

The companies involved

Klarna is a global digital bank and flexible payments provider that has become a dominant force in the fintech landscape. While widely recognized for its Buy Now, Pay Later services, the company has increasingly positioned itself as a comprehensive financial services provider. This evolution is evidenced by its recent strategic moves to deepen its footprint in major markets like the United States and Europe, moving beyond simple checkout buttons to offer integrated banking and shopping tools.

GARAGE and DYNAMITE are prominent fashion retail brands operating under the parent company Groupe Dynamite. These brands represent a significant segment of the youth and contemporary fashion market in North America and have established a growing presence in the United Kingdom. GARAGE focuses on a younger, trend-driven demographic, while DYNAMITE offers more sophisticated, versatile apparel. By integrating Klarna in-store, these brands are doubling down on a retail strategy that prioritizes consumer convenience and financial flexibility, catering to a demographic that increasingly expects modern payment options regardless of where they shop.

What FF News has reported before

FF News has closely followed Klarna’s transition from a pure-play BNPL firm to a broader financial institution. We recently reported on a significant milestone in this journey when Klarna Files for U.S. Banking License: A Major Shift for the BNPL Giant. This expansion into physical retail with GARAGE and DYNAMITE also follows a similar pattern seen in other markets, such as when Klarna Expands lululemon Partnership with In-Store Payments in UK and Germany.

Our coverage has also touched on Klarna’s diversification into new sectors, including the live entertainment space with Klarna and Ticketmaster Launch BNPL for Live Events in Greece. Furthermore, as the industry faces increased scrutiny, we noted that consumer sentiment remains positive toward oversight, as seen in our report: Klarna Survey: 87% of UK Consumers Say New BNPL Regulation Will Boost Trust.

What this means

This expansion is a clear indicator that the "BNPL wars" have moved decisively onto the high street. For Klarna, the goal is no longer just to own the digital checkout, but to become the primary payment method for the physical world. By deploying QR-code-based payments in over 300 stores, Klarna is putting pressure on traditional credit card issuers and legacy merchant acquirers who have long dominated in-store transactions.

The move also highlights a growing demand for omnichannel consistency. Retailers like Groupe Dynamite recognize that if a customer is offered credit online, they will feel friction if denied that same facility in-store. Watch for other major fashion conglomerates to follow suit as they look to protect conversion rates during the high-stakes Fall and holiday seasons.