Bed Bath & Beyond has a pre-Black Friday deal with Klarna that combines with its 20% coupons

Kelly Tyko

For four days there’s a way to save at Bed Bath & Beyond on top of the company's iconic and uber-popular 20% off coupons.

The retailer has teamed up with Klarna, a buy now pay later service, to offer what they have dubbed a “first-of-its-kind pre-Black Friday shopping deal.”

From Friday through Monday, if you choose to “Pay in Four” Klarna installment payments at Bed Bath & Beyond stores or online, your fourth and final payment is free, the companies told USA TODAY exclusively. The minimum purchase is $10 and the waived payment is a maximum of 25% of your purchase.

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David Sykes, Klarna head of North America, told USA TODAY that aside from Klarna, he doesn't know of competitors offering a promotion like this before.

"We believe shoppers will be super excited, especially those who thrive around the holidays and are looking for those extra special deals," he said. "We see strong demand from our customers, which is why Klarna is excited to kick off this type of deal with Bed Bath and Beyond first, and continue to roll out the offer at several additional merchants throughout the holiday season."

Rafeh Masood, Bed Bath & Beyond's chief customer officer, told USA TODAY that the retailer was teaming up with Klarna on the offer "to make it even easier and more affordable to shop early."

According to Klarna's holiday report, 40% of shoppers are planning to shop earlier with 72% looking to take advantage of sales and deals. More than one-third plan to spend more on holiday gifts this season.

Installment plans, which are beginning to replace traditional layaway plans, are increasingly popular with retailers. Amazon and Walmart have adopted them, as have Macy’s and Target. Newer entrants include Paypal, which bought Paidy, and Square, which bought Afterpay.

Consumers who use buy now, pay later tend to be younger, and some don't qualify for credit cards. The advantage: They can spread out the cost of a purchase over a few weeks or months in installment payments.

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How the Klarna deal works at Bed Bath

The Klarna deal at Bed Bath & Beyond splits the cost of a purchase in four interest-free payments. There are no other fees as long as payments are made on time.

The limited-time offer, combined with the Bed Bath & Beyond coupons, could also attract new customers to buy now pay later.

“By offering customers an opportunity to pay more flexibly over time, with no fees and zero interest, and on top of that waiving the last payment from their purchase, we hope to show the value and convenience that comes with alternative payment solutions like Klarna, both for new and returning customers,” Sykes said.

While Bed Bath’s coupons often carry a long list of exclusions including brands the discount doesn’t apply towards, the Klarna offer doesn’t have similar exceptions. However, according to the promotion terms and conditions, “Klarna reserves the right to cancel the offer at any time during the period listed.”

The offer is limited to one transaction per customer and for U.S. legal residents over 18. To be eligible to have the fourth and final installment waived, the first three installments need to be paid in full and on time.

♦To use the deal online: Download the Klarna app and once logged in, search and select Bed Bath and Beyond and choose “shop online.” Go to checkout and apply any coupon codes or offers and choose “pay with Klarna”

♦To use the deal in-store: Once logged into the downloaded Klarna app, search and select Bed Bath and Beyond and choose “shop in-store,” which will prompt you to set up your one-time in-store card. Create the digital card and add it to your Apple or Google wallet. The payment is made with a phone tap at the register and you will only be charged for what you end up using.

Klarna officials note that for both online and in-store shopping, the offer will not show up at checkout but "eligible customers will receive a post-purchase email from Klarna confirming their inclusion in the offer."

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