Just in time for the holidays, Etsy shoppers can now use Klarna to “buy now, pay later,” on certain purchases.

With jobless claims still high, and with no second coronavirus aid package in sight, Americans will be watching their budgets this holiday season. The Klarna option will help keep monthly expenses down.

Customers can use Klarna to purchase Etsy products that cost between $50 and $250 in four installments. Sellers will be fully paid up front, while buyers can space out payments. Klarna works with other brands like Toms, Asos, and Macy’s. 

“While the holidays bring an incredible amount of joy, they can also bring the stress of added expenses in a short time period for gift givers,” Kruti Patel Goyal, Etsy’s Chief Product Officer, wrote in a blog post.

Etsy saw big gains this year, boosted by mask sales. The company is now looking to retain new customers who came to the site looking for a mask. The Klarna partnership is one of Etsy’s many upgrades in improving the customer experience. Etsy already offers free shipping on items over $35, and will be rolling out tailored searches. Klarna reported having over 9 million U.S. users in August of this year, which could bring in even more customers for Etsy. Klarna also gives the company an edge over competitors like Amazon and Target, which don’t have pay later options.

According to a September report by Kaleido Intelligence, a fintech research firm, global consumers are projected to spend $680 billion using online “buy now, pay later” services by 2025. The option is growing in popularity in Europe and North America, and is being driven by younger buyers who may not have credit cards, or don’t want to accumulate credit card debt.

Etsy buyers seem excited about the deal, though some are already concerned for their wallets.

“Etsy has added Klarna. Someone take my phone,” tweeted @HouseofSedgeNB.

Buyers see the upside, too. Desiree Kaye, owner of Etsy shop InYourPantsIntimates, tweeted, “Did you know that Etsy now takes Klarna? I’m excited, it means holiday shopping can be broken up into payments without paying for credit card interest!”

In a time where the country is tired of lockdowns and aching to be with family members, the holidays are going to look a little different this year. Etsy is smart to think of how customers can finance the gap between what’s in their wallets, and what’s under the tree.