In recent years, the way American consumers shop for fashion has undergone a dramatic transformation. Economic fluctuations and evolving attitudes toward consumption have fueled the growth of secondhand fashion, pushing it into the mainstream. A newly announced strategic partnership between Klarna and Poshmark exemplifies how technology is shaping this shift, making resale easier and more appealing while unlocking value for everyday consumers.
Klarna, a leading buy-now-pay-later (BNPL) platform, has become a favorite among younger shoppers for its flexibility and seamless payment options. Poshmark, one of the largest fashion resale marketplaces in the United States, has built a thriving community of millions of sellers and buyers looking for affordable, sustainable fashion. Together, they have introduced an innovative integration: shoppers who previously purchased items through Klarna can now resell those same items on Poshmark with just a few taps. Product details and photos are automatically pulled from Klarna’s purchase history and prefilled into Poshmark listings, removing one of the biggest pain points for casual sellers—the tedious process of creating listings.
While this feature may seem like a simple technical convenience, it addresses a much bigger trend in American consumer life: the growing need for supplemental income and more responsible shopping habits. According to a PYMNTS Intelligence survey, 22% of employed U.S. consumers reported earning extra income in the past three months by selling used goods. The survey also showed that even people who do not live paycheck to paycheck are engaging in resale, with 7.3% of financially comfortable respondents and 6.4% of those struggling to pay bills turning to used-item sales as an income source. This shift demonstrates how resale is no longer just a niche side hustle—it’s becoming an integral part of household financial strategies.
The appeal of secondhand fashion is especially pronounced. A separate PYMNTS report, Persistent Inflation Rekindles Consumer’s Interest in Secondhand Stores, revealed that 43% of consumers purchased at least one secondhand product in 2023, with higher-income shoppers surprisingly leading the way. Clothing and accessories dominate the resale category, accounting for over half of all secondhand purchases. Poshmark, with its vast user base and vibrant seller community, is well-positioned to benefit from these shifts. Klarna’s integration makes it easier for average Americans to see their closets not as static storage but as dynamic assets that can generate cash.
Real-world stories illustrate the practical impact of this shift. Emily, a freelance designer in Silicon Valley, has sold her unused luxury handbags and clothing on Poshmark for supplemental monthly income ranging from $500 to $800. She admitted that she hesitated to resell items in the past because listing them was time-consuming. “With the new Klarna feature, I can list an item in minutes, and it actually feels worth the effort,” she said. In Houston, a couple with two school-age children used the feature to quickly resell clothing their kids had outgrown, earning over $2,000 over two years—money that helped cover school expenses and household bills.
Across the Midwest and southern states, similar stories are emerging. Communities have even begun blending online resale with offline culture, hosting neighborhood swap meets and live-stream resale events that create a sense of community while promoting sustainability. These micro-economies illustrate how resale has evolved beyond an economic survival strategy to a cultural movement.
The rising popularity of resale also reflects changing values. American consumers are increasingly drawn to “circular fashion” and sustainable practices, motivated by growing awareness of fast fashion’s environmental toll. The United Nations Environment Programme estimates that 85 million tons of textiles are discarded globally each year, and the United States—one of the highest per-capita consumers of clothing—is a major contributor. For many shoppers, reselling their clothing is no longer just about saving money but about doing their part for the environment.
Technology is accelerating this cultural shift. Klarna and Poshmark’s automatic prefill feature not only shortens the listing process but also removes psychological friction for first-time sellers. Studies show that when listing time is reduced by 50% or more, resale platform participation rises sharply. The ease of converting past purchases into resale listings is likely to boost activity and increase transactions, benefiting both buyers seeking deals and sellers looking for supplemental income.
Perhaps more importantly, this partnership creates a new kind of shopping ecosystem—one in which “buy” and “sell” are no longer separate actions. Consumers can make purchases through Klarna, enjoy the products, and later resell them through Poshmark without leaving their digital comfort zone. This circular loop of consumption is more flexible and financially friendly, particularly for younger consumers who prioritize experiences and value over sheer product accumulation.
The broader fashion resale market is poised for explosive growth. A report by ThredUp projects that the U.S. secondhand apparel market, which exceeded $40 billion in 2024, will nearly double to $80 billion by 2028. More major retailers are expected to explore partnerships similar to Klarna and Poshmark’s, creating ecosystems where resale becomes an expected part of the product lifecycle. Even established brands are responding: Levi’s and Patagonia now run official resale and trade-in programs, providing pre-owned products directly through their own channels to appeal to environmentally conscious customers.
This wave of change is also attracting attention from policymakers. Some U.S. state and local governments are introducing incentives for circular economy initiatives and setting clearer tax and compliance rules for resale transactions. As regulation matures and consumer confidence grows, participation in resale markets is expected to increase even further.
Taken together, the Klarna and Poshmark collaboration is more than just a convenient new feature. It is a reflection of America’s shifting economy, consumer values, and technology-driven retail landscape. It shows how financial innovation and sustainability goals can intersect to deliver practical solutions for everyday people. Families navigating tight budgets, individuals seeking side income, and consumers mindful of their environmental impact now have another tool that supports all three goals.
For consumers, this partnership offers a straightforward path to unlocking value from their wardrobes, managing finances more effectively, and making environmentally responsible choices. For society, it represents progress toward reducing textile waste and promoting sustainable consumption. Fashion resale is evolving from a niche segment into a mainstream movement, and Klarna and Poshmark’s partnership signals how powerful technology can be in making that transition smooth and accessible.
As the back-to-school season approaches, when household spending typically spikes, the timing could not be better. Americans are not just looking for new clothes—they are also looking for smarter ways to manage money, reduce waste, and embrace a more sustainable lifestyle. This collaboration is poised to help them do all of the above, shaping the future of fashion consumption in the process.