Klarna and Arcadia let online shoppers buy now, pay later
13 September 2016 | 8183 views | 3
Swedish online payments giant Klarna has teamed up with retail group Arcadia to launch a 'buy now, pay later' service for online shoppers in the UK.
Under the deal, Arcadia's brands - such as Topshop and Miss Selfridge - will take advantage of Klarna's new e-commerce retail financing option to let customers buy product online and then pay for them over time.
Klarna says that its service does away with the lengthy forms associated with traditional credit application processes. The company separates buying from the paying and pre-authorises customers in real time when the order is placed. Customers deemed eligible for credit are then able to spread payments for a period of up to 90 days, interest free.
Citing its own research, Klarna claims that two thirds of Brits have abandoned online shopping baskets and that by improving the customer experience and offering more flexible payment options it will help Arcadia boost sales, as well as loyalty.
Luke Griffiths, UK GM, Klarna, says: "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. To get ahead, retailers need to offer a simple, hassle free browsing and buying experience that integrates seamlessly into their customers’ lives."