H&M is investing $20 million in Klarna, a Swedish bank and online payment solution provider. The investment equals a stake of less than 1% in the company.
With the partnership, H&M will implement Klarna across all channels as a means to further integrate its digital and physical stores, the two companies said in a joint statement. The partnership, which spans 14 European countries including the UK and Sweden in its first phase, will go live in 2019. The deal could expand to the U.S. and Asia at some point, Klarna first told the Financial Times.
Additional features that H&M will adopt via the platform include frictionless in-store, mobile and online payments, simplified deliveries and returns and a try before you buy pay later service. The fashion retailer will integrate these features into the next generation of the H&M mobile app and H&M Club payment program.
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The partnership will be Klarna’s largest, following similar deals with UK-based retailer Asos and IKEA, according to a Klarna spokesperson.
H&M has been struggling to maintain market share in recent years, but recently saw a 9% increase in sales in Q3, its biggest jump since Q2 2017. To continue the positive momentum, the retailer has been taking steps to enhance its e-Commerce offering through web site and mobile app upgrades that include Visual Search, Mobile Scan and Find, Rate and Review and #HMxME, an inspiration gallery that displays pictures from global H&M fans who use the hashtag in their social posts.
Additionally, the fashion retailer will add a “find in store” option this fall, allowing shoppers to locate an item in the H&M store nearest to them.
