Department store operator Macy’s has signed a deal to invest in Sweden-based payment group Klarna. The news was reported by CNBC. This makes Macy’s Klarna’s latest retail partner joining rapper Snoop Dogg and investment managing company BlackRock.
The deal includes a five-year partnership between the two companies where Macy’s customers will get to make payments in four interest-free installments when shopping online. This would make Macy’s one of the first department stores to offer the “buy now, pay later” option that is becoming increasingly popular among e-commerce channels.
Macy’s did not disclose the value of their investments. Klarna takes a four-part installment plan for all of their online transactions.
With the growth in online shopping, buy now, pay later services are becoming very popular, especially for higher priced items. According to CNBC, the United States is one of the largest markets for buy now, pay later services with the biggest competitors being Paypal, Afterpay, and Affirm.
Klarna was one of the few companies that performed well during coronavirus, seeing a 550 percent growth in the U.S. market in the first half of 2020. Last month the company was 650 million dollars, giving the company a 10.65-billion-dollar valuation.
photo: courtesy of Macy’s Press Room