Failed buy-now-pay-later operator Laybuy brand relaunched under new owner Klarna

Buy-now-pay-later operator Laybuy is making a comeback after it was acquired by Klarna last year. Photo / Getty Images

Fallen buy-now-pay-later brand Laybuy has relaunched in New Zealand after its operating platform was bought up by Swedish payments giant Klarna.

Laybuy went into receivership in June last year after the company was hit by the economic downturn in New Zealand and the United Kingdom.

Klarna acquired the brand’s IT operating platforms systems, according to the six-monthly receivers’ report. The receivers didn’t specify the amount Klarna paid but noted the sale of assets realised $200,923.

Laybuy founder and former chief executive Gary Rohloff will spearhead the relaunch as Klarna’s head of Australia and New Zealand.

Rohloff said the opportunity to utilise Klarna’s international scale was a key point of difference for the relaunch.

“This is a company that ... just blows my mind. They’ve got 93 million-plus active consumers globally, somewhere close to 700,000 merchants globally, and we’re talking some of the biggest merchants on the planet as well,” he said.

“I think importantly, Klarna’s global scale and its AI-driven [artificial intelligence] technology is really incredible. It provides a real trust and stability that a global behemoth can only provide.”

The buy-now-pay-later service has already partnered with Kiwi brands including Mix and Match, PB Tech, Postie, and Designer Wardrobe to bring its service back to checkouts, with more retailers set to follow soon.

Rohloff was “heartbroken” when the former board was forced to place the business into receivership.

He said at the time: “This left the board with no option but to make the gut-wrenching decision to voluntarily request the appointment of Deloitte as receivers. This is a difficult time for our team and I am devastated.”

Gary Rohloff, the former chief executive of Laybuy, now works as the head of Australia and New Zealand for Klarna. Photo / Jason Oxenham

The six-monthly receivers’ report for Laybuy Group noted that as of December 17, 2024 the business had paid back over $8 million to Kiwibank as a secured creditor, while still owing them roughly $544,000. A further $70,000 was paid to Inland Revenue as a preferential creditor.

Employees, however, were still owed roughly $336,000 in unpaid wages and salaries.

Now that the business is back under new ownership, the opportunity to rebuild excites Rohloff, particularly given the current retail industry in New Zealand.

“They [Klarna] want to help shoppers shop responsibly, it’s all about making sure they do things the right way. They are capable of and will offer merchants a better commercial deal.”

“They’ve got many innovative solutions that we will be able to bring to bear in New Zealand over time.”

Laybuy by Klarna's new logo as it gets set to relaunch in New Zealand following its fall into receivership in 2024.

Rohloff said the Klarna offer would be online only to start with and be a pay-in-four instalments option, rather than Laybuy’s pay-in-six.

He said Klarna’s global product suite is compelling and he intends to widen access to those brands and products for New Zealanders “as fast as we can”.

The relaunch will also enable the Laybuy brand to utilise the AI capabilities that Klarna has on offer, making use of Klarna’s back-end to support its consumer and retailer communications and dashboards.

Klarna first entered the New Zealand market in 2021 when there were a lot more operators. Since then, a number have dropped out of operation.

The buy-now-pay-later market remains competitive with Laybuy expected to go up against payments giant Afterpay, although Rohloff believes Klarna’s financial strength will allow it to compete.

“We know from the research we’ve done that people loved the Laybuy brand and we intend to replicate that, powered by Klarna.”

“I think the strength of Klarna means we can provide retailers with a better deal. We have also got a considerable strength globally to add value to retailers, should they be looking to expand outside of New Zealand.”

But Rohloff acknowledged that the brand has to demonstrate it can “walk the talk”, although he is confident it can.

He shared his delight to see the Laybuy brand he helped create live on.

“It’s really cool because we were absolutely passionate about what we did. We did genuinely start around the kitchen table with my wife and I and our two sons, so it’s awesome to see that live on.”

The new Laybuy by Klarna has soft-launched in a few retailers already, with more announcements set to come in the near future.

Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.