Formalwear retailer and British high street institution, Moss Bros., has joined forces with Swedish leading payments provider and newly-licensed bank, Klarna, to offer its online customers a new buy now, pay later service.
Online customers can decide whether to buy their items for up to 14 days, with no interest or fees. If the items are not what the customer expected, they can simply be returned with no money exchanged. It is down to the merchant as to whether they offer free returns. Moss Bros. offers various ways for customers to return their items free of charge.
Pay later is essentially the same as the ‘try before you buy’ service that ASOS launched in November 2017 through Klarna. JD Sports and Topshop are other major UK retailers to have adopted the new retail strategy and technology with Klarna. The payment option allows shoppers to order for free, try the items on at home, and only part with any money when they decide what they like and want to keep. Pay later has been proven to boost sales and increase purchase frequency.
To be eligible for Pay later a customer must be at least 18 and it is subject to financial circumstances. As no debit or credit card details need to be given until the customer pays for what they decide to keep, to counteract fraud, temporary addresses and false names will be picked up by Klarna’s stringent risk detection systems.
Founded in Stockholm in 2005, Klarna now works with 90,000 merchants to offer payment solutions to users across Europe and North America. It now has 2,000 employees and is active in 14 countries. In July this year Klarna co-founder and CEO, Sebastian Siematkowski, told the FT that the business, which got its banking license last year, had an opportunity to shake up the banking system and shift the focus more to the needs of the consumer. Klarna is yet to launch its own payment card in the UK, however one is available to consumers in Sweden. It is to be confirmed as to when a card will launch here.
Matt Henton, Head of Ecommerce at Moss Bros., says: “We’re constantly on the lookout for new ways to provide our customers with a better experience throughout their entire purchasing journey, and payments are an intrinsic part of this. We’re really looking forward to working with Klarna and improving the online payments process for our customers, while boosting their purchase power and providing more choice at the checkout.”