Klarna (NYSE: KLAR) announced it has expanded its partnership with H&M to include Romania and Hungary, allowing customers in both markets to use flexible payment options when shopping online with the fashion retailer.

The integration offers H&M customers three payment choices: immediate payment, payment within 30 days, or payment in three equal interest-free installments. All payment terms are displayed before order completion, with no interest or fees charged when payments are made on time.

The expansion comes as Klarna reports growth in Romania, where the company has surpassed 500,000 active users since launching in June 2023. The digital payments provider now works with over 1,500 merchants in the Romanian market.

Klarna and H&M have maintained a global partnership for several years. The addition of Romania and Hungary extends their collaboration to new markets in Eastern Europe.

"We are delighted to expand our partnership with H&M and bring Romanian and Hungarian consumers modern, digital, transparent alternatives for managing their payments," said Loredana Pipoș-Lupescu, Country Manager Romania at Klarna.

Katarzyna Skrzeczynska, Head of Customer Activation and Marketing for H&M Region East Europe, stated: "By extending our partnership with Klarna, we're providing to customers in Romania and Hungary a truly modern way to shop, with flexible payment solutions."

Klarna operates in 45 markets globally with over 118 million active users and processes 3.4 million transactions daily. The company reported a total payment volume of $128 billion over the past 12 months and works with more than 1 million retail partners worldwide.