After moving into sustainable fashion, furniture, and other big-ticket items, buy now, pay later (BNPL) has moved into a new market: gasoline.
Swedish shopping app Klarna announced a partnership with Chevron and Texaco that would allow users to pay off the price of filling their tanks in four installments over a six-week period, like any other purchase on its app. All users have to do is find a gas station in the app, create a $75 digital card, and use it to pay. Any unused funds will be returned to their account.
The move comes in the midst of rising gas prices in the United States. AAA estimates the average gas price across the country today is over $4 per gallon—though some states on the West Coast are nearing $5 and $6 per gallon. The short-term loans could be helpful for those who can’t afford to drop more than 50 bucks at the pump each time—and are also indicative of the problem of rapidly inflating prices for necessary purchases.
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