Macy's has become the latest investor in Swedish online payment company Klarna and has entered into a five-year partnership to offer Klarna's 'buy now, pay later' payment method to its customers. The value of Macy’s investment was not disclosed. As an investor, Macy's joins other Klarna investors including Silver Lake, Ant Group, and Snoop Dogg, among others.
Through the partnership, Macy's has also become one of the first US department stores to offer its customers the option to pay their total in four equal, interest-free installments by using Klarna at online checkout.
“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, 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.”
“Klarna is delighted to partner with Macy’s as the shift to online retail accelerates and the company continues to innovate and enhance its digital offerings to meet evolving consumer expectations, for which smart and flexible payments are essential," added Sebastian Siemiatkowski, chief executive officer of Klarna.
According to the payment company, Klarna currently has more than 200,000 retail partners globally and a U.S. consumer network of 9 million shoppers.
In mid-September, Klara was valued at $10.65 billion after having raised $650 million in an equity funding round. The valuation ranked Klarna as the highest-valued private fintech in Europe and the fourth-highest worldwide.