H&M and Klarna have announced they have entered into a £15m global partnership as the Swedish clothing retailer acquires a less than 1% stake in the fintech company.
The clothing retailer said the equity investment demonstrates a “shared commitment and vision to the continual development of smarter retail where optimisation is constant in order to meet customers changing expectations and preferences”.
Klarna said it will further integrate its digital payments technology into H&M’s digital and physical stores to give customers a “seamless, personalised and engaging shopping experience no matter where, when and how they shop”.
Klarna’s single technological platform will enable frictionless instore, mobile and online payments, simplified deliveries and returns and the flexibility for consumers to decide how and when to pay including the popular ‘try before you buy’ Pay later service.
The services will be integrated into the next generation of the H&M app and H&M Club with the initial phase in the UK and Sweden expected to go live in 2019.
Karl-Johan Persson, CEO H&M group said: “We are impressed with what Klarna has achieved to date and now we will work together to elevate the modern shopping experience. This strategic partnership between H&M group and Klarna is based on a joint relentless focus on creating great customer experiences.”
Sebastian Siemiatkowski, CEO and co-founder of Klarna, added: “Retail is changing, and the future of fashion retail is high tech powering high touch experiences for customers. Regardless of how and when customers want to shop, we need to be there for them. Customers will no longer be forgiving of unnecessary complexity or when their retail experience does not leverage the insight available to make their engagement smart, personal and easy.
“This partnership is rooted in a shared obsession about just how good that shopping experience should be. Together we have worked hard on developing a unique solution for instore and online that will delight customers, drive economic value and build loyalty.”
