H&M shares are higher Monday, as the fast fashion retailer has confirmed a deal with fintech business Klarna. H&M reportedly paid around £15.3 billion for a stake in the digital payment processor, which will help further integration of its online and in-store shopping processes.
By 1150 BST, H&M shares were 0.14% higher at SEK169.22. The stock has been broadly positive in recent weeks.
H&M digital restructure continues
The news was initially reported by the FT and confirmed in a joint press release from H&M and Klarna.
The deal will see Klarna digital payment tech used across all the H&M platforms and help to further simplify the process for both H&M and its customers. The new payment system will also allow online customers to enjoy a ‘try before you buy’ service.
“We are impressed with what Klarna has achieved to date and now we will work together to elevate the modern shopping experience,” said H&M CEO, Karl-Johan Persson. “This strategic partnership between H&M group and Klarna is based on a joint relentless focus on creating great customer experiences.”
For Klarna, this is its largest deal to date and the leadership team are unsurprisingly upbeat.
“Retail is changing, and the future of fashion retail is high tech powering high touch experiences for customers,” said Klarna’s co-founder and CEO, Sebastian Siemiatkowski.
“This partnership is rooted in a shared obsession about just how good that shopping experience should be. Together we have worked hard on developing a unique solution for instore and online that will delight customers, drive economic value and build loyalty,” Siemiatowski added.
This latest development for H&M, which not only sees them utilise the tech Klarna has to offer, but also to make an equity investment into the business, is further confirmation of the Swedish fashion firm’s commitment to ensuring the digital transformation of H&M is one that will stand the test of time.
“We want to make it possible for customers to move freely between the various channels and choose how they want to shop and experience our offering online and instore,” said H&M’s head of business development, Daniel Claesson.