H&M has acquired a stake in Swedish FinTech firm Klarna as the two companies enter into a global partnership.
Klarna will provide the fashion giant’s customers with online and in-store payments as part of the deal, which will start in 14 European countries including the UK and Sweden.
However, it has scope to expand to the US and Asia.
In a statement, Klarna said its single technological platform will enable an “outstanding end-to-end customer journey across all H&M channels”.
This will include in-store, mobile and online payments, simplified deliveries and returns and the flexibility to decide how and when to pay including the popular ‘try before you buy’ pay later service.
Sebastian Siemiatkowski, CEO and co-founder of Klarna, said the future of fashion retail is “high tech powering high touch experiences for customers”.
“Customers will no longer be forgiving of unnecessary complexity or when their retail experience does not leverage the insight available to make their engagement smart, personal and easy,” he warned.
“This partnership is rooted in a shared obsession about just how good that shopping experience should be.
“Together we have worked hard on developing a unique solution for instore and online that will delight customers, drive economic value and build loyalty.”
H&M CEO Karl-Johan Persson added: “We are impressed with what Klarna has achieved to date and now we will work together to elevate the modern shopping experience.
“This strategic partnership between H&M group and Klarna is based on a joint relentless focus on creating great customer experiences.”
H&M did not reveal the financial terms of its investment.