Hot on the heels of the news that it has become Europe’s biggest FinTech unicorn, Klarna is gearing up for further growth with a new partnership.
Payments provider Klarna is expanding its existing partnership with online fashion powerhouse boohoo group to include the US and UK. The deal will see the retailer’s online shoppers across in the US use Klarna’s payment four-part instalment plan. UK shoppers will be able to enjoy a similar deal later in 2019. Klarna and boohoo group have previously collaborated in Germany, the Netherlands, Denmark, Sweden, Norway and Finland.
Commenting on the partnership, Michael Rouse, chief commercial officer of Klarna, said, “Shoppers today expect more from brands and 76% of retailers told us that they are working harder than ever to win customer loyalty. In this challenging environment it’s never been more important for retailers to get the customer experience right, and flexible payment options are a key part of this – 30% of millennial and Gen Z shoppers say payment choice is a top driver of loyalty for them. Working together with boohoo group, we’re waving goodbye to the idea that there’s a one size fits all method where payments are concerned, and instead creating solutions that suit their customers’ needs and drive growth – both in the UK, Europe and the US.”
John Lyttle, CEO at boohoo group, added, “Our customers in Germany, the Netherlands, Denmark, Sweden, Norway and Finland love the convenience and control that Klarna’s payment options offer them, so expanding our partnership to include the UK and the US was the obvious next step. This move will not only help us cement customer satisfaction and loyalty – it will also ensure we retain our competitive edge and are well positioned for future growth globally.”
The news comes as Klarna was valued at $5.5bn in early August, making it Europe’s arguably most valuable FinTech unicorn. The valuation came as the company announced a $460m equity round.
August proved a busy month for Klarna as the Swedish the payments solutions provider also announced a teamup with ASOS, the fashion retailer, across the pond that month. The two had previously had a partnership in the UK.
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