Buy Now, Pay Later: The Revolution of Online Commerce

Member Hightlight

03 Feb 2017, Elin Hammenfors

Buy Now, Pay Later: The Revolution of Online Commerce

Arcadia Group – One of the largest fashion retailers in the United Kingdom, with brands such as Topshop, Miss Selfridge, Burton Menswear, Wallis and Dorothy Perkins.

Klarna – the Swedish fintech company that has revolutionised the way people shop and sell online

Together they are streamlining retail financing through the new Buy Now, Pay Later service developed by Klarna, which delivers seamless financing solutions for online and mobile shoppers. Consumers can now bypass timeconsuming forms requiring information ranging from occupation to number of pets (OK, maybe not pets) to complete their credit application. Klarna saves time by separating the buying from the paying and pre-authorises customers in real time when the order is placed. Customers deemed eligible for credit will then be able to buy the product and choose to pay later, interest free for up to 90 days. Klarna recently conducted a study showing that 67% of UK shoppers have abandoned a basket online due to long and complex checkouts and the lack of flexible payment options.

“Retailers need to offer a simple, hasslefree browsing and buying experience that integrates seamlessly into their customers’ lives,” says Luke Griffiths, UK General Manager of Klarna.

Arcadia Group is a popular online retailer with total worldwide digital sales increasing by 23.9% in 2015, so the results from the Buy Now Pay Later service will be exciting to see to say the least.

Unlike other financing options Buy Now, Pay Later improves the user experience by offering instant access to credit without redirecting customers away from the online store, allowing the retailer to maintain their own look-and-feel throughout the checkout process. Klarna also ensures legal compliance across all markets – making it easy for online retailers to expand into new markets.

The collaboration with Arcadia Group is just another milestone for one of Europe’s fastest growing companies and the leading European payments provider. Klarna has expanded from 30 employees in 2007 to 1,400 co-workers today. Klarna’s business has also developed from supplying invoice services to Klarna Checkout, which enables users to shop smoothly without unnecessary registration. Hence, they are steadily getting closer to reaching their goal: to become the world’s favourite way to buy.