Klarna Expands lululemon Partnership with In-Store Payments in UK and Germany

Quick Summary

Klarna has launched its in-store payment solutions at lululemon locations across the UK and Germany. This expansion allows shoppers to use Klarna’s flexible, interest-free payment options at physical checkouts via a simple QR code scan, bridging the gap between digital convenience and the brick-and-mortar retail experience.

How Does Klarna In-Store Work for lululemon Shoppers?

The in-store payment solutions provided by Klarna eliminate the friction typically associated with physical retail financing. Instead of filling out lengthy applications at the till, customers simply scan a QR code using the Klarna mobile app. This process takes only a few seconds to complete, allowing users to access the same "Pay in 3" or "Pay Later" features they use online.

• No physical cards or separate credit applications are required at the point of sale.
• Shoppers can spread the cost of high-end athletic wear into interest-free installments.
• The system is fully integrated via lululemon’s existing payments partner, Adyen.

Why is Klarna Moving Beyond the Digital Browser?

While Klarna built its reputation as an e-commerce giant, the company is now targeting the $28 trillion global in-person spending market. This move into physical stores represents a massive growth opportunity, as offline spending remains nearly four times larger than online retail. By implementing in-store payment solutions, Klarna ensures brand loyalty remains consistent regardless of where the customer chooses to shop.

“Shopping shouldn't be less flexible the moment you walk into a store," said Klarna Chief Commercial Officer David Sykes. "We've spent years making online checkout smarter, and now we're bringing that same freedom to the till. Whether you're picking up your kit in person or ordering it online, you should be able to pay the way that best works for you.”

What Results Has the Klarna and lululemon Partnership Delivered?

The two brands have maintained a successful five-year digital partnership, proving that flexible payments drive higher conversion rates and average order values in the athleisure sector. The expansion into the UK and Germany physical markets leverages Adyen’s unified commerce platform to ensure a seamless rollout. This omnichannel approach allows lululemon to provide a consistent brand experience across all touchpoints, catering to a demographic that demands both premium products and modern financial flexibility.

FF NEWS TAKE:

This move definitely moves the needle for the in-store payment solutions market. While BNPL has dominated online checkouts, the physical store has remained a stronghold for traditional plastic. By partnering with a high-velocity brand like lululemon, Klarna is proving that QR-based credit is ready for the mainstream. For fintechs, the message is clear: the future of payments isn't just digital; it's omnichannel or nothing.