19 July 2018
Register today

Klarna and Arcadia let online shoppers buy now, pay later

13 September 2016  |  8466 views  |  3 add to basket

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."

Comments: (3)

Hitesh Thakkar
Hitesh Thakkar - FIS Payments Software and Services India - India 13 September, 2016, 15:18

Does this strategy helps to curtail Mammoth Shopping Cart Abandon rate and value that most of the online retailers face or some thing more in it for retailers?

Be the first to give this comment the thumbs up 0 thumb ups!
Ihor Mochernyak
Ihor Mochernyak - IgOrKo - Ивано-Франковськ 18 September, 2016, 12:49

According to Klarna chief operating officer Sebastian Siemiatkowski, that’s as a result of the company’s service is quite simply some way of providing patrons with instant credit. It’s checkout service handles all varieties of payment ways, as well as credit cards (after writing in your email address, you'll enter your mastercard and it'll be saved for future use). the larger purpose, Siemiatkowski told U.S.A. this past fall, is that Klarna simplifies the checkout method, material possession you get stuff with fewer keystrokes. “There remains abundant|an excessive amount of} much friction with payments, too several steps, an excessive amount of stuff you have got to enter,” he said.

1 thumb up! 1 thumb up!
Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 18 September, 2016, 19:31

I got into a Q&A on some blog a few years ago with a Klarna cofounder / CEO. I remember him saying that Klarna charges merchants only 0.5% transaction fees, which is much lower than credit / debit card MSC and also that Klarna has been profitable from Day One!

1 thumb up! 1 thumb up!
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Swedish online payments firm Klarna buys rival Sofort

Swedish online payments firm Klarna buys rival Sofort

18 December 2013  |  7372 views  |  0 comments | 7 tweets | 7 linkedin

Related company news


Related blogs

Create a blog about this story (membership required)
Visit info.nice.comVisit https://secure.vasco.comVisit http://go.jumio.com/finextraAd

Top topics

Most viewed Most shared
Calmejane quits Lloyds Bank to join SocGenCalmejane quits Lloyds Bank to join SocGen
11397 views comments | 5 tweets | 7 linkedin
Metro Bank opens developer portalMetro Bank opens developer portal
9984 views comments | 5 tweets | 14 linkedin
Anything Visa can do...Mastercard takes time outAnything Visa can do...Mastercard takes ti...
9619 views comments | 6 tweets | 15 linkedin
Mastercard enlists Worldpay to push Vocalink's Pay by Bank appMastercard enlists Worldpay to push Vocali...
9138 views 19 comments | 14 tweets | 30 linkedin
Hong Kong plans September go-live for blockchain-based trade financeHong Kong plans September go-live for bloc...
8669 views comments | 9 tweets | 17 linkedin

Featured job

Find your next job