Payment provider Klarna is acquiring Close Brothers Retail Finance (CBRF) from UK merchant banking group Close Brothers, in an acquisition which will significantly strengthen Klarna’s position in the UK retail finance market.

Michael Rouse, Klarna's CCO, says: “We are delighted to welcome CBRF to Klarna. The complementary talents and propositions will help accelerate Klarna’s leadership in the payments market.

"What CBRF have achieved to date in the UK is impressive, but together we can invest in realising the full potential of the business. Outside of the core offering in retail finance, we immediately recognised a shared commitment in building deep partnerships with our merchants so their business thrives and an unrelenting focus on the customer experience. By combining capabilities and leveraging CBRF market knowledge, we are confident that we can offer even more innovative and flexible payment solutions to our merchants and customers in the UK and across markets.”

Founded in 2014, Close Brothers Retail Finance has over 600 active merchants in the UK, including brands such as Samsung Electronics, Mothercare, Emma Mattress and Victorian Plumbing. The PoS finance products offered allow shoppers to pay over time in simple, fixed monthly payments.