H&M shakes up payment strategy with new tech partnership

  • TECH
  • Tuesday, 09 Oct 2018

H&M is testing a system that would allow online customers to try before purchasing.

Fast fashion giant H&M is trialing a new payment strategy that would give online shoppers the chance to ‘try before they buy'.

The Swedish retailer has teamed up with Klarna, a European tech company and payment provider, to work on the H&M Club1 payment programme. The partnership will focus on an enhanced omni-channel customer payment offering, which is set to go live in 14 of the brand's markets – including the UK and Sweden – in 2019.

It will offer frictionless in-store, mobile and online payments, simplified deliveries and returns and the flexibility to decide how and when to pay including the popular 'try before you buy', pay later service.

The retailer is also investing in Klarna itself. "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 in-store," said Daniel Claesson, head of Business Development H&M group, in a statement.

"This partnership will bring tailor-made payment solutions to our customers and accommodate evolving shopping patterns and needs. This includes the possibility to 'try before you buy' which is very relevant to online fashion retail today and to pay with their mobile phone directly through the H&M app both in-store and online."

"Customers will no longer be forgiving of unnecessary complexity or when their retail experience does not leverage the insight available to make their engagement smart, personal and easy," added Sebastian Siemiatkowski, CEO and co-founder of Klarna. "This partnership is rooted in a shared obsession about just how good that shopping experience should be."

The move is the latest attempt by H&M to up its e-commerce game: in August, the brand unveiled a revamped e-commerce site and mobile application for its US customers, with new features including a 'visual search' mode that will let fashion fans search for pieces by uploading a picture from social media or by taking a photo themselves of a certain style. – AFP Relaxnews

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