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Parent company of Topshop partners with European payments unicorn

Arcadia Group, the parent company of UK retailers Topshop and Miss Selfridge, has announced a new partnership with FinTech payments firm Klarna to provide buy now, pay later options to consumers.

The Swedish firm, which also has a presence in London, is challenging the likes of US giants Paypal and Stripe with its Amazon-style one click ordering and buy now, pay later financing options which it claims dramatically improve conversion rates.

This new agreement will provide shoppers at Arcadia’s brands with financing options for both online and mobile sites, with customers pre-authorised for credit in real time when the order is placed.

Those eligible are then able to pay for their products later with interest-free credit for 90 days.

Luke Griffiths, UK General Manager of Klarna, said that more consumers are shopping on their mobiles than ever before, but that frustrating checkouts and a lack of payment options were hurting sales.

He commented: “To get ahead, retailers need to offer a simple, hassle free browsing and buying experience that integrates seamlessly into their customers’ lives

“We are excited to offer an innovative solution to one of the biggest challenges UK retailers face, and to be pioneering a new approach to retail financing with some of the country’s biggest brands.”

Since it was founded in 2005, Klarna has attracted significant investment in the last few years with backing from high-profile venture capital funds including Sequoia Capital and Northzone.

It is considered a European unicorn after the tech firm was valued at $1.4bn in 2014.

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