Gap Inc. Embraces Klarna as U.S. BNPL Usage Exceeds 25% Among Millennials

variety of payment options across our portfolio of brands,” Kevin Meiners, head of loyalty and payments at Gap Inc., said in the official announcement. Klarna’s Chief Commercial Officer, David Sykes, emphasized, “By offering Klarna at checkout, Gap Inc.

is giving millions of shoppers the flexibility to shop how and when they want, while also supporting a personalized way to pay.” BNPL’s Accelerating Adoption—and Its Impact on Retail According to data cited in the PYMNTS Intelligence report, BNPL usage is rapidly embedding itself in the financial lives of Americans.

Adoption is strongest in younger age groups, with almost 25% of consumers aged 25-35 actively using BNPL, while even among those 65 and over, usage exceeds 5%. This cross-generational appeal is shifting how retailers approach both digital and omnichannel experiences.

The impact on conversion rates and average order value is significant: the report found that 43% of consumers would not make the payment or purchase at all if BNPL weren’t available, while another 42% would opt for a cheaper item. These numbers underscore why major retailers like Gap Inc…