Klarna, Abercrombie & Fitch expand lending collaboration to U.S., U.K.
Abercrombie & Fitch and Klarna are following a successful launch of short-term installment loans on apparel in Germany by adding more markets.
Sweden-based Klarna will roll out its Pay Later service for online shoppers at Abercrombie & Fitch, Abercrombie kids and Hollister Co. later this year in the U.S. and U.K., with different repayment terms in each market, according to a release.
In the U.S., shoppers will have the option to repay instant, online loans for apparel purchases within four weeks, while U.K. shoppers must repay the Klarna loans within three weeks. Germany will continue with existing repayment terms of two weeks.
Abercrombie & Fitch operates 850 stores worldwide.
Last week Klarna announced an expanded partnership with Swedish apparel giant H&M, which will add Klarna’s Pay Later as an option for purchases in stores and online via H&M’s app, beginning this fall.