Klarna Bank AB, a Sweden-based payments provider and digital bank, announced an enhanced agreement with Abercrombe & Fitch to allow the apparel retailer's U.S. and U.K. customers to finance their purchases through multiple installments. 

Klarna said that customers of Abercrombe & Fitch, Abercrombie Kids and Hollister Co. will have access to Klarna's Pay in 3 product in the U.K. and Pay in 4 product in the U.S. The installment programs allow customers to pay in three or four payments over a 2-month period without interest or fees.

Klarna currently provides its Pay Later service to A&F in Germany, under which customers can pay up to 14 days after delivery. 

"At Klarna, we are delighted that A&F Co. is part of our global portfolio of retail partners," Michael Rouse, chief commercial officer of Klarna, said in a company release. "Our continued partnership is based on a shared vision that the future of retail consists of a high-touch shopping and payment experience, which will not only drive engagement and reach, but also build customer loyalty."

Matt Weger, chief information officer at A&F, said the retailer wants to continue providing options that meet the needs of its customers.

"We aim to provide engaging, seamless brand experiences from product discovery to checkout and fulfillment, and adding Klarna, which has already seen success with our customers in Germany, supports that goal."

Klarna works with 130,000 merchants in 14 countries around the world.

Late last month, Klarna announced an agreement to extend an existing partnership with H&M to the U.S. market. The expanded partnership is scheduled to go live in the fall, following a previously announced agreement in Switzerland starting in August, followed by a U.K. rollout shortly afterwards and five additional markets later this year.