San Francisco-based Espin, which was founded in 2015, began selling its ebikes in January 2017. Espin currently offers four bike options that retail for $1,888 each. With Klarna, a purchaser can now opt for financing that would spread payments over a 24-month period. As higher-end electric bikes become more common, financing options have become frequently available.
Payments for an Espin ebike are estimated to be about $3.50 a day, Josh Lam, co-founder of Espin told Auto Finance News. This is an estimate based on Espin’s option of spreading payments over a 24-month period for an estimated total payment of $2,328 (excluding sales tax), as Klarna has a 9.9% APR, he said.
The partnership between the two companies was established when Lam reached out to Klarna directly, he said. Customers can easily access the financing option when purchasing a bike online, as an option to “Pay Over Time” from Klarna is given along with a PayPal option.
“I thought [Klarna’s financing] solutions were perfect for an e-commerce platform, because it makes the process [of buying] more frictionless and seamless,” he said.
Espin ebikes is specifically targeting college students and delivery couriers for its bikes, as bike riding among college campuses and couriers has become increasingly popular. For instance, Espin is offering any UberEats courier in the San Francisco Bay Area $400 off when they purchase a bicycle. Although not a formal partnership with UberEats, Espin is offering a discount and UberEats is promoting the discount among its Bay Area network.
