Swedish payments giant Klarna continues to grow its footprint in the UK shopping market, signing a major new deal with fashion retail group Arcadia to let online shoppers ‘buy now, pay later’.
Owned by Sir Philip Green, the Arcadia group comprises big high street brands including Topshop, Dorothy Perkins, Topman, Wallis and Miss Selfridge.
If customers like the product and they are judged eligible for credit by Klarna, they can delay payment for up to three months interest free or start paying off with interest after three months are up. If they don’t like the product, they can send the item back.
Purchases need to be higher than £40 to qualify.
Klarna wants to eliminate two barriers to online shopping: cart abandonment due to fiddly payment processes and not buying things in the first place due to not being able to touch and try on goods.
The firm, based in Stockholm and one of Europe’s most valuable fintech companies, says two thirds of people in the UK have abandoned shopping cards according to its research.
For Arcadia, and other retailers, Klarna promises to help streamline the check-out process and improve the overall shopping experience, as well as ultimately boosting sales and loyalty.
While Klarna launched in the UK two years ago, this is the biggest retail the company has inked to date.
“More consumers are shopping on the go than ever before, but in our fast-paced lives shoppers get frustrated by long and complex checkouts and a lack of flexible payment options, says Luke Griffiths, UK GM at Klarna.
“To get ahead, retailers need to offer a simple, hassle free browsing and buying experience that integrates seamlessly into their customers’ lives.”
The deal comes not long after Klarna announced a partnership with UK fashion tech startup Lyst on mobile shopping.
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