Klarna goes live at Marks & Spencer with pay-in-three across M&S.com and the M&S app

Klarna went live at Marks & Spencer on 15 October 2026, offering its buy now, pay later option on M&S.com and in the M&S app for fashion, home and beauty purchases. Customers can split a basket into three equal interest-free payments with no revolving balance. Physical stores are not part of the launch. Raji Behal, Klarna's Head of UK, Ireland and Western and Southern Europe, and Katherine Carlson, M&S Director of Financial Services, both framed the deal around meeting customers wherever they shop and giving more flexibility in how they pay.

M&S is one of the last large UK general retailers to have kept instalments off its own checkout, and it has its own financial services arm, which makes the decision to distribute a third-party method rather than build one a signal about where that build-versus-buy line now sits for incumbent retailers. The categories are the point: fashion, home and beauty are where basket values are high enough for instalments to change conversion, and M&S has been pushing online growth in exactly those ranges.

For the acceptance mix it adds another non-card method at a major UK checkout at the same time as pay-by-bank is being pushed there, which continues to chip at card share in UK e-commerce.

Whether the option reaches M&S stores or remains online only, whether M&S extends it to food or to its Sparks loyalty proposition, what it does to M&S average order values in home and beauty, and whether other UK department-store incumbents follow.

• retailtechinnovationhub.com