Zalando has expanded Klarna’s Buy Now, Pay Later (BNPL) option at checkout in five new European markets.

On Thursday the online fashion and lifestyle retailer announced it has rolled out ‘Pay in 3’ to Germany, Austria, the Netherlands, Poland, and Denmark.

The move follows the launch of the payment option in France, Italy, and Spain last year.

The German retailers offers around 6,000 lifestyle brands to over 50 million customers.

"At Zalando, we are committed to providing our customers with a seamless and locally relevant shopping experience," said Kai-Uwe Mokros, managing director at Zalando Payments. "Now more than ever, convenience, flexibility and conscious spending are key priorities for customers."

Mokros added that the expansion would help to boost customer payment flexibility by enabling them to choose an option that best suits their individual needs and preferences.

Last month Zalando announced its intention to acquire rival ABOUT YOU.

The company said the sale will allow the companies to better serve the needs of their customers and cover a larger share of the European fashion and lifestyle market.

ABOUT YOU, which aims to appeal to a younger audience, currently has over 12 million active customers, a network of over 27,000 content creators who showcase around 700,00 different styles from different brands.

Zalando said that ABOUT YOU’s operations will add scale and complementary capabilities, with the two businesses able to collaborate across a wide range of areas including logistics, payments, and commercial collaborations.

The deal, which is subject to approval by German regulator BaFin, is expected to close in summer 2025.

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