Need to Know
- H&M has partnered up with Klarna to launch Pay Later, a payment option that allows loyalty members to buy now and pay later.
- Shoppers can make biweekly payments or pay 30 days later with no interest.
- The new service is available both online and in-store.
- H&M is one of the world’s most popular shopping destinations, with almost 5,000 stores worldwide and net sales valuing $200 billion.
H&M is now offering another way for shoppers to pay. This week, the major retailer announced a partnership with Klarna to launch of Pay Later, a new payment solution that allows H&M fans to buy now and pay later.
In a partnership with Klarna, a “global disruptor of payments and banking” and the Pay Later provider, H&M shoppers can make four biweekly payments or pay 30 days later with no interest. And if they end up returning the item, they don’t need to make a payment at all.
The “frictionless and flexible checkout” is available both online and in-store, and purchases are handled entirely within the H&M app.
“Shopping at H&M should be convenient, relevant and inspiring and we are happy to now offer fashion fans in the U.S. a whole new way of paying for their fashion finds,” said Stefan Vos, chief financial officer, H&M North America. “Through the partnership with Klarna, we have developed an H&M-unique payment solution that offers our fans a truly modern shopping experience no matter where and how they choose to shop.”
Valued at over $5.5 billion, Klarna is already very popular in stores across Europe, where it has worked with brands like IKEA and Samsung. Now, it is making its way to North America, starting with H&M.
H&M is one of the world’s most popular shopping destinations, with almost 5,000 stores worldwide and net sales of over $200 billion. And after a two-year slump, H&M earnings have returned to growth, with its stock rising 7.5%.
The new payment option is exclusive to H&M’s loyalty members, posited as a more flexible and convenient way to shop. This option also encourages loyalty program sign-ups for new shoppers, which is not H&M’s only recent bid to retain customers and appeal to new ones.
With the rise of climate change advocacy and scrutiny in the fast-fashion world, H&M has undergone something of a rebrand. Last year, the fashion retailer pledged to become 100% ‘climate positive’ by 2040 by using renewable energy and increasing energy efficiency in all its operations, as well as working on improving its labor policies.
The partnership with Klarna could represent the next phase of innovation and customer retention for H&M.
“The foundation of the Klarna and H&M partnership is a commitment to continuously develop smarter, simpler and engaging shopping experiences,” said Sebastian Siemiatkowski, CEO at Klarna. “We at Klarna are excited to now launch our Pay later offering together in the U.S. enabling a unique shopping experience for consumers.”