Klarna launches for online purchases at Marks & Spencer

Marks & Spencer (M&S) customers can now use Klarna at checkout on M&S.com and in the retailer’s app. The option is available for purchases in Fashion, Home & Beauty. Customers can split the cost into three equal, interest-free payments.

Paying in three instalments

The product launched at M&S is Klarna Pay in 3. Klarna says it has transparent terms and does not create a revolving balance. Each purchase follows a fixed repayment schedule with a defined end date.

The launch is limited to digital channels and the specified product categories. The announcement does not refer to availability in physical stores or in other M&S categories.

Objectives for both companies

Klarna describes itself as an everyday finance network and presents the partnership as part of its goal to offer consumers interest-free payment flexibility wherever they shop. Raji Behal, Klarna’s Head of UK, Ireland & Western and Southern Europe, said the option lets M&S customers spread the cost of purchases without interest and with a clear end date.

M&S links the launch to a simpler shopping experience. Katherine Carlson, Director of Financial Services at M&S, said the option is intended to make shopping with the retailer easier and give customers using its website and app more flexibility in how they pay.

Klarna’s merchant network

With M&S joining its network, Klarna reports that it works with more than 1.2 million merchants globally. The company also says its UK merchant base includes all of the country’s major department stores. The launch therefore adds to its existing presence in that part of the UK retail market.

Klarna says M&S serves millions of shoppers every day. The integration makes interest-free instalment payments available to the retailer’s online and app customers. Both companies highlight transparent terms, while the option uses a fixed repayment schedule and a defined end date.