Macy’s Invests In BNPL Firm Klarna

Macy’s Inc. has become an investor in international payments and shopping service Klarna, according to a Tuesday (Oct. 6) announcement.

Klarna also announced that it teamed with Macy’s to provide shoppers with the option to pay in four equal, interest-free payments at eCommerce checkout.

“We’re excited to embark on a long-term relationship with Klarna that will help us reach wider audiences looking for seamless alternative payment solutions that provide them with financial control and convenience,” Macy’s Chief Digital Officer Matt Baer said in the announcement.

Macy’s is among the first firms in the department store vertical to provide shoppers with Klarna’s buy now, pay later (BNPL) offering, which is attractive to younger consumers, according to the announcement.

Macy’s has been speeding up its digital efforts and collaborations to handle heightened digital demand, and has also been expanding flexible payment choices with the rapid acceleration of eCommerce.

Klarna has over 200,000 retail partners worldwide, and a U.S. network of nine million consumers. The Klarna app sees in excess of 12 million monthly active users globally.

“Klarna is delighted to partner with Macy’s as the shift to online retail accelerates and the company continues to innovate and enhance its digital offerings to meet evolving consumer expectations, for which smart and flexible payments are essential,” Klarna CEO Sebastian Siemiatkowski said in the announcement.

In June, Klarna indicated that it had achieved a milestone with 7.85 million American customers. The firm attributed the volume to its increasing partnerships with different firms, including Sephora, H&M, The North Face and Timberland, among others.

In addition, the company has revamped its app for users in Great Britain. The re-envisioned app has been designed to handle shoppers’ expectations as they transition from shopping in physical stores to buying online.

“Despite the shifting retail landscape, consumers are still looking for inspiration, convenience and value — and it’s become obvious that shopping online now goes far beyond just a transaction,” Siemiatkowski said in a statement at the time.