Fashion and clothing franchise H&M has made an equity investment into payments company Klarna.
The value of the investment was not revealed; however, Reuters reports it was valuated at $20m.
In line with the investment, the companies have formed a global partnership which will see further integration of Klarna’s payment services at its digital and physical stores.
This partnership will power the H&M Club, a digital loyalty programme which rewards consumers with points when shopping. It will also support other services from the retailer including its omni-channel customer payment offerings and payments on the mobile app.
The launch of the new payment services is planned for 2019.
Klarna CEO and co-founder Sebastian Siemiatkowski said, “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.”
Klarna is a Sweden-based payments solution provider for e-commerce companies through direct transactions, pay after delivery and instalment plans.
Earlier in the year, Klarna acquired the point-of-sale financing enterprise Close Brothers Retail Finance. The deal was made to support Klarna’s presence in the UK and evolution of its consumer offerings.
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