Macy’s has partnered with global payment and shopping service Klarna to offer its ecommerce customers flexible payment options. The five-year partnership will allow Macy’s online customers to pay in four equal interest-free installments. Following the trend of retailers investing in tech companies, Macy’s also has invested in Klarna.
“With a strong focus on digital agility and innovation, Macy’s continually seeks strategic partnerships that enable us to provide our customers with the best possible shopping experience,” said Matt Baer, Chief Digital Officer at Macy’s in a statement. “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.”
Within the department store segment, Macy’s is one of the first companies to offer its customers Klarna’s buy now, pay later offering, which appeals to younger demographics who increasingly prefer alternative payment methods. Amid ecommerce’s rapid acceleration, Macy’s has been fast-tracking digital initiatives and partnerships.
Klarna currently has more than 200,000 retail partners globally and a U.S. consumer network of 9 million shoppers, and the Klarna app, which enables customers to shop at any online store, has more than 12 million monthly active users globally.
Retailers across the board are increasingly offering buy now, pay later options. The market for these solutions is projected to experience a compound annual growth rate (CAGR) of 28% worldwide through 2023, according to PYMTS.com.