Klarna and Arcadia launch “buy now pay later” initiative for UK
Payments specialist Klarna and fashion retailer Arcadia Group have launched a new e-commerce retail financing offering to the UK market.
The “buy now pay later” initiative will enable customers of Arcadia’s fashion brands, e.g. Topshop and Miss Selfridge, to buy products online and pay for them over time. This will be done without the stress of filling out lengthy forms associated with a traditional credit application process, Klarna states.
“Klarna separates buying from the paying and pre-authorises customers in real-time when the order is placed,” the payments vendor explains. “Customers deemed eligible for credit will then be able to buy products but opt to pay for them later, interest free for up to 90 days.”
The advantage of this offering, it states, is that users can have instant access to credit without being redirected away from the online store – enabling the retailers to maintain their own look-and-feel throughout the checkout process.
Klarna adds that, according to its recent research, 67% of UK shoppers abandon their shopping basket online, which equates to an average loss of £37,062 per UK retailer each year.
“In our fast-paced lives shoppers get frustrated by long and complex checkouts and a lack of flexible payment options,” observes Luke Griffiths, Klarna’s UK general manager. “To get ahead, retailers need to offer a simple, hassle-free browsing and buying experience that integrates seamlessly into their customers’ lives.”
This partnership with Arcadia is part of Klarna’s wider international launch of the “buy now pay later” option. In the US, for instance, this offering is going live with shoes.com.
Klarna emphasises it “ensures legal compliance across all markets”.
Set up in 2005, Klarna now has 65,000 merchants on its customer list, 1,500 staff and operations in 18 countries across Europe and North America.