Buy now, pay later (BNPL) firm Klarna has joined forces with online ticket reseller Vivid Seats to offer ticket buyers the ability to make four interest-free installment payments on live concerts, sporting and entertainment events, according to a Wednesday (Sept. 23) press release. The payment plan option will be rolled out later this year. A specific date was not released.
In a recent Reopening Insights Report that Klarna commissioned, nearly 70% of consumers said they intend to go to in-person events within the next six months. Seventy percent of those polled said they are willing to pay more now than they would have pre-pandemic for an in-person entertainment experience.
Fueled in large part by the pent-up demand of live events stemming from the pandemic, Chicago-based Vivid Seats was set to make its initial public offering (IPO) in April, as PYMNTS reported. After linking with Horizon, a special-purpose acquisition company (SPAC), the companies’ combined value was estimated at $1.95 billion.
Horizon plans to merge with Vivid Seats, which will continue as the going-forward public company, according to the press release. A registration statement has been filed with the Securities and Exchange Commission, along with a proxy statement/prospectus and other related documents for use at the stockholders’ meeting to authorize the proposed merger, according to the release.
The Vivid Seats marketplace supports 12 million customers and 3,400 ticket resellers making transactions across more than 200,000 listed events.
Buoyed by its success, Klarna is considering an IPO as early as next year. The Swedish firm reported that gross merchandise volume had increased by more than $8 billion in the last year, with app installations up 115% and cumulative app downloads standing at 36 million. In the U.S., total app downloads stand at 13 million, representing a compound annual growth rate (CAGR) of 236% as measured from 2018 to 2021.