ASOS will extend its payments partnership with Klarna to offer flexible financing options in the U.S. The solution lets customers pay for their purchases in four equal, bi-weekly payments without interest or fees, and has been active in the UK since 2016.
Flexible payments can be a boon in the fashion industry: 22% of shoppers say they struggle to afford the latest trends, according to Klarna. The trend is even higher among younger shoppers, with the share rising to 30% of Millennials and 37% of Gen Z. Another 21% of all shoppers say that installment plans ultimately help them spend more.
“At ASOS we want to give our customers choice in everything we do, whether that is in the broad range of ASOS Design and branded products, smooth and fast delivery options or payment options,” said Eve Williams, Brand Experience Director at ASOS in a statement. “We know these are all important to our customers — the addition of Klarna as a payment method in the U.S. will help provide the best customer experience for our U.S. customers.”
The focus on customer choice has proven successful even with the looming threat of Brexit: global sales were up 12% at the retailer in the four months ended June 30, including a 16% increase in the UK and a 12% increase in the U.S. ASOS expects even higher growth in the U.S. once it completes a warehouse renovation program that has been impacting stock availability and its cost base.