Simon Property Group has teamed with Klarna to offer the mall operator’s shoppers the fintech company’s in-store payment solutions. The companies also said in a statement that they’re working together on “additional strategic initiatives, which will be announced and rolled out in the future.”
The rollout of Klarna’s payment options at Simon retail centers was described as a “strategic national alliance and multiyear relationship” between the two companies.
“The collaboration will harness the power of Simon’s vast in-store shopper base with Klarna’s millions of monthly active users,” the companies said.
David Simon, chairman, chief executive officer and president of Simon, said identifying ways that support the success of “our merchants while elevating the customer shopping experience are key priorities for Simon.”
“By aligning with Klarna, we’re giving our retail tenants an important advantage this holiday season and well into the future: a unique way to attract new audiences already embracing the convenience that Klarna’s interest-free payment options provide,” he added.
Sebastian Siemiatkowski, CEO of Klarna, said Simon “connects millions of consumers with merchants in truly meaningful and engaging ways that are reimagining experiences far beyond the expected, every day.”
“With recent news reports stating that retail traffic is expected to exceed 2019 levels once again, we’re thrilled to partner with Simon to further unlock in-store revenue and loyalty for retailers, and offer customers even more ways to shop and pay how they want,” Siemiatkowski noted.
Aside from Klarna’s buy now, pay later and other flexible payment solutions being available at Simon retail sites, Klarna said it will also bring a “suite of innovative performance-based digital marketing capabilities to physical retailers in Simon centers and collaborate with Simon on marketing campaigns, in-mall activations and communication programs to raise awareness with shoppers over time.”
Regarding future initiatives between the two companies, they said that in the “spirit of this national alliance, Klarna and Simon are planning and developing unique strategic initiatives geared toward consumers and retailers, which will bring significant added value to Klarna and Simon shoppers who shop at Simon shopping destinations.”
In a conference call with analysts this past August, Simon reiterated the importance of physical retail. The company said funds from operations are on track to reach $4 billion this year. While that is 5 percent below 2019 levels, Simon said given the impact of the pandemic the company’s financials show the strength of its portfolio.