Global digital bank and flexible payment services provider Klarna Group plc has partnered with automotive retail cloud platform Tekion to introduce Klarna's comprehensive payment solutions into after-sales service departments at dealerships across the United States, offering vehicle owners flexible payment choices for repair costs.
When faced with an unexpected $1,200 brake repair or a $3,000 transmission replacement, most car owners have only one option: swipe a credit card and "figure it out later." Klarna's Chief Commercial Officer David Sykes notes that this is exactly what credit card companies aim for, as revolving credit is designed to keep customers making minimum payments indefinitely, without a fixed end date or a clear path to payoff.
Through this integration, Tekion Pay—the built-in payment solution within the Tekion Automotive Retail Cloud platform—will incorporate Klarna's payment suite, including full payment options, interest-free installment plans split into four payments, and longer-term financing choices, directly into the after-sales service checkout process. Each option comes with a fixed repayment schedule and a clear payoff date, allowing vehicle owners to know exactly when they will be debt-free.
Jamie Fox, General Manager of Tekion Pay, stated that payment flexibility is no longer just an optional feature; customers expect more choices, and now dealerships can offer these options without adding any transaction friction.
Tekion ARC provides technological support to thousands of dealerships in the U.S., serving a wide range of major automotive brands and some of the largest dealer groups. Millions of dealership customers use Tekion Pay every time they schedule a service, pick up their vehicle, or make a payment at the front desk. Currently, Klarna boasts over 118 million active users worldwide, processing 3.4 million transactions daily.
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