Sephora, Journeys and rue21 are among the first Klarna merchant partners to offer Google Pay, in addition to Apple Pay, for in-store purchases, providing even more payment flexibility to consumers along with the safety and security that contactless payments provide.

"We're focused on providing all of our users with a seamless, contactless shopping experience as stores reopen and the pandemic continues to affect communities across the nation," said David Sykes, Head of US at Klarna. "At the same time, it's critical we help our retail partners drive business growth, both online and offline, to give them a competitive advantage at a time when margins are tight. We're excited to introduce this safe and secure option to consumers who use Android devices to ensure we provide them with a smooth and convenient shopping experience, end to end."

Klarna is extending the contactless payment options it offers at a time when consumers' use of touch-free payments is rising due to concerns about health and safety. Overall use of contactless payments in the US has grown by 150% since March 2019.

Klarna initially launched in-store payments in the US for iPhone users with Apple Pay in January of this year. Since rolling out the capability, retailers that offer Klarna's in-store solution have reported increases in average order value as high as 310% compared to orders transacted through other means.

For retailers, contactless in-store payments provide value by boosting shoppers' purchasing power with more flexible ways to buy and by connecting in-store and online touchpoints through the Klarna app. Klarna's in-store solutions are compatible with all modern POS systems and Klarna handles all the complexity of compliance, translations and customer data.