Cash & Liquidity ManagementPaymentsKlarna looks to strengthen position in UK retail financing market

Klarna looks to strengthen position in UK retail financing market

Swedish payment provider Klarna has announced that it is acquiring Close Brothers Retail Finance from UK merchant banking group Close Brothers Group.

Klarna’s recently announced acquisition of Close Brothers Retail Finance from UK merchant banking group Close Brothers Group is intended to strengthen Klarna’s position in the UK market for retail financing and enable accelerated growth and expansion of the company’s consumer offering.

Founded in 2014, Close Brothers Retail Finance has provided retail finance services to more than 600  merchants in the UK, including brands such as Samsung Electronics, Mothercare, GAME, Jessops, Ebuyer, Emma Mattress, Cotswold Outdoor and Victorian Plumbing.

The point of sale finance products offered by Close Brothers Retail Finance enable shoppers to pay for purchases over time in fixed monthly payments.

According to Michael Rouse, chief commercial officer of Klarna, “The complementary talents and propositions will help accelerate Klarna’s leadership in the payments market. What CBRF have achieved to date in the UK is impressive but together we can invest in realizing the full potential of the business.

“Outside of the core offering in retail finance, we immediately recognised a shared commitment in building deep partnerships with our merchants. By combining capabilities and leveraging CBRF market knowledge, we are confident that we can offer even more innovative and flexible payment solutions to our merchants and customers in the UK and across markets.”

Alex Marsh, managing director of Close Brothers Retail Finance, said: “We have the exciting opportunity to further develop our capabilities and deliver even more services and value to merchants. We are now focusing on a smooth integration and seamless continuity of our offering to merchants and customers.”

Luke Griffiths, managing director of Klarna UK, commented: “Together, we will have a rich omnichannel product offering that will exceed than anything currently available for a wide range of retail verticals”

The acquisition is subject to approval by the Financial Supervisory Authority of Sweden.

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