Klarna has become a popular payment solution for clothing brands, allowing customers to shop now and pay later, increasing their spending flexibility.
With the growing demand for “buy now, pay later” (BNPL) services, brands across industries are leveraging Klarna to meet customer expectations.
In 2023, BNPL services are projected to account for nearly $576 billion in global e-commerce transactions . In this article, we will explore 10 clothing brands that use Klarna to enhance their customers’ shopping experiences and boost sales.
What are the Benefits of Using Klarna?
Here are five main benefits of Klarna for clothing brands:
- Increased Conversion Rates: By offering “buy now, pay later” options, clothing brands reduce cart abandonment and increase completed purchases, as customers are more inclined to buy when they can pay later or in installments.
- Improved Customer Loyalty: Klarna’s flexible payment options encourage repeat business, as customers appreciate the convenience and affordability of spreading payments over time, building long-term brand loyalty.
- Broadened Customer Base: Klarna attracts younger shoppers and those who prefer financial flexibility, allowing brands to reach a wider, more diverse audience, including millennials and Gen Z.
- Seamless Integration: Klarna’s smooth integration with e-commerce platforms allows for a hassle-free checkout experience, minimizing friction and ensuring a positive customer journey from start to finish.
- Cash Flow Benefits: Brands receive payments upfront from Klarna, even though customers are allowed to pay in installments, ensuring smooth cash flow and financial predictability for the business.
Here are 10 Clothing Brands that Use Klarna Payment Method
1. ASOS
- What They Do: Online fashion and cosmetic retailer
- Industry: E-commerce, retail (Fashion)
- CEO/Founder: José Antonio Ramos Calamonte (CEO)
- Employee Size: 3,000+
- Why They Use Klarna: ASOS chose Klarna to cater to younger consumers who prefer flexible payment options, leading to increased conversion rates.
ASOS, a major player in the global fashion industry, offers Klarna as a payment option, enabling its customers to purchase items and pay for them later. By offering both “Pay in 30 days” and “Pay in 4 installments” options, ASOS targets millennial and Gen Z customers who value convenience and financial flexibility.
Klarna helps ASOS reduce cart abandonment, as shoppers are more likely to complete their purchases with these flexible payment options. Additionally, Klarna’s smooth integration with ASOS’s platform provides a seamless user experience, enhancing overall customer satisfaction and loyalty.
2. H&M
- What They Do: Global fashion retailer
- Industry: Retail (Fashion)
- CEO/Founder: Helena Helmersson (CEO)
- Employee Size: 155,000+
- Why They Use Klarna: H&M partnered with Klarna to enhance convenience for their growing online shopper base, improving sales conversion.
H&M has embraced Klarna’s flexible payment solution to provide its customers with a seamless shopping experience. Shoppers can choose to pay for their purchases in installments or defer payments for 30 days.
This partnership is part of H&M’s larger strategy to enhance its digital footprint and offer more customer-friendly payment options. As a result, the brand has seen a significant boost in online sales, particularly from mobile shoppers. Klarna’s ability to integrate with H&M’s website and mobile app ensures that the checkout process remains fast and simple, making it easier for customers to finalize their purchases.
3. Boohoo
- What They Do: Online fashion retailer
- Industry: E-commerce, retail (Fashion)
- CEO/Founder: John Lyttle (CEO)
- Employee Size: 2,500+
- Why They Use Klarna: Boohoo uses Klarna to offer an effortless shopping experience, focusing on driving younger customer engagement.
Boohoo, a leading UK-based fast-fashion retailer, incorporates Klarna into its payment system to allow its customers more flexibility at checkout. By offering Klarna’s “Pay Later” service, Boohoo empowers its predominantly younger audience to shop without immediate financial constraints. Klarna’s easy-to-use interface ensures that customers can break down their payments over several weeks, which has significantly contributed to Boohoo’s sales growth. Klarna’s BNPL option also helps Boohoo to reduce friction at checkout, encouraging repeat purchases and boosting customer retention.
4. Shein
- What They Do: Global fast-fashion e-commerce platform
- Industry: E-commerce, retail (Fashion)
- CEO/Founder: Chris Xu
- Employee Size: 10,000+
- Why They Use Klarna: Shein integrates Klarna to make high-volume, fast fashion more accessible to its price-sensitive customers.
Shein, known for its trend-driven fast fashion at affordable prices, leverages Klarna to provide flexible payment options, particularly for its younger audience. Klarna allows Shein customers to split their payments into manageable chunks, increasing their ability to purchase more items at once without the burden of upfront costs.
This seamless payment solution helps Shein drive customer satisfaction, with Klarna playing a key role in lowering cart abandonment rates, as users can now defer payments without disrupting their shopping experience. The integration of Klarna also supports Shein’s global expansion efforts by simplifying payments for its international customer base.
5. Gymshark
- What They Do: Sportswear and accessories brand
- Industry: Retail (Fitness apparel)
- CEO/Founder: Ben Francis (Founder & CEO)
- Employee Size: 500+
- Why They Use Klarna: Gymshark partners with Klarna to offer flexible payments for its activewear, appealing to its fitness-focused customer base.
Gymshark, a popular fitness apparel brand, uses Klarna to offer its customers the flexibility to pay in installments. With a large following of fitness enthusiasts, Gymshark caters to a younger demographic that values flexibility in both products and payments. Klarna’s BNPL service fits perfectly with Gymshark’s focus on providing a user-centric shopping experience, enabling customers to pay over time for high-quality sportswear.
By incorporating Klarna, Gymshark has reduced cart abandonment rates and improved customer loyalty, especially among its millennial and Gen Z shoppers.
6. Urban Outfitters
- What They Do: Lifestyle and fashion retailer
- Industry: Retail (Lifestyle & fashion)
- CEO/Founder: Sheila Harrington (CEO)
- Employee Size: 10,000+
- Why They Use Klarna: Urban Outfitters chose Klarna to enhance convenience for its younger customers, driving customer engagement and repeat sales.
Urban Outfitters integrates Klarna into its payment ecosystem to provide customers with flexible payment options such as paying in installments or delaying payments. This is part of Urban Outfitters’ ongoing strategy to make shopping more convenient for its predominantly younger audience. Klarna helps Urban Outfitters reduce the friction of large upfront payments, encouraging shoppers to spend more without the financial pressure of immediate payment. This payment flexibility has not only increased conversion rates but also strengthened customer retention and engagement.
7. Forever 21
- What They Do: Fast-fashion retailer
- Industry: Retail (Fashion)
- CEO/Founder: Daniel Kulle (CEO)
- Employee Size: 30,000+
- Why They Use Klarna: Forever 21 utilizes Klarna to offer payment flexibility, increasing purchase power for its budget-conscious audience.
Forever 21, a fast-fashion retailer, leverages Klarna to provide flexible payment options for its value-conscious customers. By enabling customers to pay for their purchases in installments, Klarna helps Forever 21 to reduce cart abandonment rates, ensuring more customers complete their purchases. This payment solution is especially popular among younger customers, who appreciate the flexibility that Klarna provides. Forever 21’s integration with Klarna has contributed to increased sales and a smoother shopping experience.
8. Abercrombie & Fitch
- What They Do: Apparel and accessories retailer
- Industry: Retail (Fashion)
- CEO/Founder: Fran Horowitz (CEO)
- Employee Size: 40,000+
- Why They Use Klarna: Abercrombie & Fitch offers Klarna’s BNPL options to boost customer satisfaction and conversion rates in its online store.
Abercrombie & Fitch has partnered with Klarna to provide its customers with flexible payment plans, allowing them to split their purchases into multiple installments. This has helped A&F boost its e-commerce sales, particularly among younger consumers who prefer flexible payment options. By integrating Klarna, Abercrombie & Fitch can attract more customers while ensuring they have an easy and stress-free shopping experience. Klarna’s user-friendly interface and seamless checkout process contribute to improving A&F’s customer satisfaction rates.
9. Levi’s
- What They Do: Denim and casual wear retailer
- Industry: Retail (Apparel)
- CEO/Founder: Chip Bergh (CEO)
- Employee Size: 15,000+
- Why They Use Klarna: Levi’s integrates Klarna to provide a flexible payment option, enhancing accessibility for its premium denim products.
Levi’s, renowned for its high-quality denim, uses Klarna to give customers the option to pay for their purchases in installments. Klarna’s “Pay Later” solution allows Levi’s customers to enjoy greater financial flexibility when purchasing premium-priced items. This has significantly reduced the cart abandonment rate, as customers are more likely to complete their purchases when they have the option to spread the cost over time. Levi’s integration with Klarna provides a more accessible and convenient shopping experience for its customers.
10. Anthropologie
- What They Do: Lifestyle, clothing, and accessories brand
- Industry: Retail (Fashion & home goods)
- CEO/Founder: Tricia Smith (CEO)
- Employee Size: 10,000+
- Why They Use Klarna: Anthropologie uses Klarna to give customers the option to split payments, increasing customer loyalty and improving the checkout experience.
Anthropologie, a high-end lifestyle and fashion brand, partners with Klarna to offer its customers the ability to pay in installments.
Takeaway
This payment option aligns with Anthropologie’s strategy of providing a premium, hassle-free shopping experience. Klarna’s payment flexibility appeals to customers who prefer to continue with their purchases while managing their finances better.
By using Klarna, Anthropologie has increased sales conversions, as customers are more likely to buy premium items when they can pay over time.
Klarna’s easy integration into Anthropologie’s e-commerce platform ensures a smooth checkout process, leading to higher customer satisfaction and retention.