Macy’s is investing in Swedish payments company Klarna.
The five-year deal includes Macy’s using Klarna’s “buy now, pay later” service at online checkout, which allows customers to make payments in four equal, interest-free installments at the online checkout.
Financial details were not disclosed.
In its statement, Macy’s said it had been fast-tracking digital initiatives given the “rapid acceleration” of e-commerce.
Klarna, whose investors include Silver Lake, Singapore’s sovereign wealth fund GIC, Sequoia, and rapper Snoop Dogg, saw 550% growth in the U.S. during the first half of this year.
Last month, the company raised $650 million in a fund-raising round led by Silver Lake. The company said following the investment it was the highest-valued private fintech company in Europe with a valuation of $10.65 billion.
The company has some nine million customers in the U.S. where the market for buy now, pay later companies is currently estimated at 90 million. It said its app has more than 12 million active users globally.
In January it said it was partnering with H&M to offer the service and develop new products for use both in physical stores and online.
“We are in discussions with some global retailers on exclusive deals,” Klarna chief executive officer Sebastian Siemiatkowski told Reuters. “We at Klarna take a very long-term approach and this investment demonstrates a shared commitment and vision to the continual development of retail over the next years to meet customers changing expectations and preferences.”
Klarna’s other retail partners include IKEA, Expedia Group, Samsung, ASOS, Peloton, Abercrombie & Fitch and Nike.