Iconic department store Macy's has taken a stake in buy now, pay later outfit Klarna, giving the Swedish vendor a huge boost in its bid to crack the US market.
Macy's is rolling out Klarna's technology to offer customers the ability to elect to pay in four equal, interest-free installments at online checkout. The deal terms include a five-year exclusivity clause, giving Klarna a free run at embedding its brand in the minds of consumers.
“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, Macy’s, Inc. “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 interest comes just six week after Klarna raised $650 million as part of a a renewed effort to break into the United States, where the company now claims more than 9 million consumers..
The value of Macy's investment in Klarna was not disclosed.