M&S is offering shoppers flexible payments options online, rolling out Klarna across its Fashion and Home & Beauty offering.

Shoppers on M&S.com and the M&S app can now pay with Klarna, allowing them to split the cost of fashion, home and beauty buys into three equal, interest-free payments.

“People deserve flexibility without paying interest for it, so our goal is simple: meet them wherever they shop,” said Raji Behal, Head of UK, Ireland & Western & Southern Europe at Klarna.

“M&S is a beloved British icon that brings second-to-none quality and value to millions of shoppers every day. We’re proud to now offer them a transparent way to spread the cost with no interest and a clear end date.”

Klarna said M&S now joins over 1.2million merchants globally that partner with it on flexible payments.

“At M&S, we are always looking for ways to make it easier for our customers to shop with us,” Katherine Carlson, Director of Financial Services at M&S, said. “Customers shopping on M&S.com and through our app can now spread the cost in three interest-free payments with Klarna, offering more flexibility in how they pay for the things they love.”

With consumers’ disposable incomes remaining squeezed, demand for Buy Now Pay Later (BNPL) continues to rise. Data from Lloyds Merchant Services showed that 84% of merchants are experiencing increased demand for flexible payment options at the checkout.

Its research also showed that one in six (61%) consumers are more likely to shop with a retailer offering BNPL, with half (50%) now comfortable using flexible payments for mid-ticket purchases between £100 and £500.

“With adopters more likely to buy from retailers offering instalment options, this is no longer a nice-to-have, it is vital to growth,” Melinda Roylett, MD at Lloyds Merchant Services, commented. “Cash management is the number one reason people choose embedded lending, and we see this trend growing as households look for more options to support their spending.”