In February 2026, Klarna announced a partnership with Michael Kors to introduce BNPL (Buy Now, Pay Later) options for customers shopping in the US and Canada.

Based out of Sweden, Klarna’s collaboration allows shoppers on Michael Kors’ online store to use its payment solutions at checkout. This means purchases can be paid in instalments over time.

This partnership positions Michael Kors among other retail partners in Klarna’s network who offer deferred payments. Customers can opt for Klarna during the purchasing process, selecting a payment plan that matches their purchase amount and eligibility criteria.

Enhancing Payment Options at Fashion Retailers

Operating as a licensed bank in Sweden, Klarna serves customers across Europe, North America, and Australia. The company provides interest-free instalment plans, 30-day pay options, and longer-term financing solutions to consumers making purchases through its network of retail partners.

Michael Kors is a luxury fashion brand owned by Capri Holdings, offering a range of accessories, footwear, and apparel. Positioned between mass-market and ultra-premium categories, the brand appeals to an accessible luxury audience through its e-commerce channels and physical stores.

Klarna’s payment options vary depending on the purchase amount, merchant settings, and credit assessment outcomes. Users can manage their payments via the Klarna app or website, receiving reminders for upcoming instalments.

Competing with other BNPL providers like Affirm, Afterpay (now part of Block Inc.), PayPal’s Pay in 4, and Zip, Klarna earns revenue from merchant fees rather than charging interest on short-term plans. These services facilitate purchases through partnerships with retailers.

BNPL Landscape in the US

In 2024, the US Consumer Financial Protection Bureau issued interpretive rules under the Truth in Lending Act classifying BNPL providers as credit card issuers. This required standard disclosures and dispute resolution processes for these services.