By Roger Baird on Thursday 27 June 2019
The buy-now-pay-later platform will build on its relationship with the giant Swedish fashion retailer.
Buy-now-pay-later platform Klarna has expanded its agreement with fashion chain H&M with plans to launch in the US.
The deal will see the world’s second-largest clothing retailer run Klarna’s payment options across its online American operations, as well as in its 580 US stores.
The Swedish fintech, founded in 2005, offers shoppers alternative payment options such as paying for goods up to 30 days later, or splitting purchase costs over equal payments spread over three months, without fees. Shoppers can apply for its credit online, or at shop tills.
H&M and Klarna said the US move, set to launch in the autumn, will be managed through the fashion stores app and loyalty programme.
The chain said the new US feature will be available “for H&M members only, as H&M aims to create the world’s best customer loyalty programme.”
‘Shopping experiences’
Klarna chief commercial officer Michael Rouse added: “The foundation of the Klarna and H&M partnership is a commitment to continuously develop smarter, simpler and engaging shopping experiences.”
Stockholm-based H&M paid $20m for a stake of just under one per cent in Klarna last October. The clothing retailer operates 48 online markets and runs more than 4,900 stores in 72 markets.
Meanwhile, Klarna has struck another payment partnership with UK tech repair chain iSmash.
The chain, founded in 2013, said the deal with Klarna allows customers to use its buy-now-pay-later service even if they do not have access to their phones.
They will be able to apply to Klarna in iSmash stores, giving their name, email address, address and date of birth to find out if they are eligible.
The chain runs 26 stores in London, Manchester and Leeds, and plans to expand this to 70 by the end of next year.
‘Payment options’
Julian Shovlin, founder and managing director at iSmash, said: “Giving customers what they want is the driving force behind our success, and we can’t wait to see how Klarna’s payment options help our customers in the future.”
Klarna, also based in Stockholm, is the world’s leading buy-now-pay-later platform with a valuation of around $2.5bn, employing 2,500 staff.
In the UK, it completes against New Zealand’s Laybuy, while Australia’s Afterpay plans a British launch in the second half of this year.
21 March 2023
Daniel Lanyon