By Roger Baird on Tuesday 6 August 2019
The Swedish fintech and the fashion chain said the move builds on an existing British partnership.
Buy-now-pay-later platform Klarna has expanded its agreement with online fashion chain Asos with plans to launch in the US.
The deal will see the global chain, aimed at 20-somethings, offer Klarna’s Pay in 4 service to customers.
The means the Swedish fintech, founded in 2005, will offer shoppers the option of paying for goods in four equal payments – with no interest or fees. Customers can apply for its credit online, or at shop tills.
Asos and Klarna already offer payment services in the UK, following a 2016 agreement. The US service began operations at the end of July.
Latest trends
The fashion chain said a survey of its shoppers show that 22 per cent say they struggle to afford the latest trends and would like an option to pay in instalments or pay later – increasing to 37 per cent for Gen Z and 30 per cent for Millennials customers.
Asos brand experience director Eve Williams said: “The addition of Klarna as a payment method in the US will help provide the best customer experience for our US customers.”
Klarna chief commercial officer Michael Rouse added: “ASOS offers an accessible shopping experience. Paired with Klarna’s smooth user experience and capabilities, customers in both the US and UK are now able to experiment and express themselves in the latest fashions with confidence.”
Klarna, based in Stockholm, is the world’s leading buy-now-pay-later platform with a valuation of around $2.5bn, employing 2,500 staff. It works with 130,000 merchants around the world.
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