Payment technology provider Klarna will power fashion retailer H&M's new loyalty scheme in a deal that involves the latter investing $20m.
Fashion retailer H&M is investing Skr185m ($20m) in Sweden-based payment technology provider Klarna as part of a partnership agreement, the Financial Times has reported.
Formerly known as Kreditor, Klarna works with a client base of about 90,000 online retailers to give customers the chance to pay for items through instalments, triggering the option at the checkout.
The company’s technology will partner a H&M loyalty scheme called H&M Club, which will give customers points for both online and in-store purchases, and will also beef up the retailer’s payment options and enhance the post-purchase service in its app.
Although the size of the stake H&M is acquiring through the deal was not disclosed, Klarna was valued at about $2.5bn when investment firm Permira bought a 10% stake in July 2017 through a secondary share purchase, according to the FT.
Daniel Claesson, H&M’s head of business development, said in a statement: “We…
