Fashion group Arcadia will launch payment technology across its online fascias this month in an effort to attract more millennial shoppers.
The Sir Philip Green led fashion giant will offer its shoppers up to three months of interest-free credit on online purchases across all of its brands including Dorothy Perkins, Topshop, Miss Selfridge and Burton.
The retail group has teamed up with financial technology supplier Klarna to launch the payment initiative entitled ‘Buy Now, Pay Later’ for UK shoppers.
“The payment technology had been added to increase the appeal of Arcadia’s brands to millennial customers”
The technology will allow shoppers to undergo an online credit check, comprising four questions and built into the online checkout process before completing a purchases, after which they have three months to pay for the item.
Arcadia’s group treasurer and head of card services Richard Burchill told Retail Week: “Normally with online credits checks you’re looking at a three to four minute process as a minimum and on top of the usual checkout, but with Klarna it only takes 20 to 30 seconds.”
He noted that the payment technology had been added to increase the appeal of Arcadia’s brands to millennial customers.
“We’ve got a lot of younger customers and young brands and they want speed and convenience when shopping online.”
Klarna’s online credit check technology is currently being used by US footwear retailer Shoes.com, but Arcadia is their first UK retail partner.
The financial technology supplier’s UK general manager Luke Griffiths said: “To get ahead, retailers need to offer a simple, hassle free browsing and buying experience that integrates seamlessly into their customers’ lives.
“We are excited to offer an innovative solution to one of the biggest challenges UK retailers face, and to be pioneering a new approach to retail financing with some of the country’s biggest brands.”