A fight a year in the making, Yarde promised to learn his lessons and, frankly, never looked in danger of not emerging victorious.
Yarde, from Hackney, lost a close split decision in December last year although he rebounded by knocking out the lightly-regarded Alex Theran in August, a few weeks after the unbeaten Arthur stopped Davide Faraci.
Yarde made the more impressive start in rounds one and two and stopped his Manchester opponent in round four, when Arthur was hurt by a body shot before being pinned on the ropes and eventually going down onto the canvas.
“I hurt him in the first round,” he told BT Sport.
“When I let my hands go and I land, there’s no lightweight heavyweight in the world that can withstand it.”
Promoter Frank Warren had earlier revealed that the winner of the return bout would earn the number one spot with the WBO and a possible world title shot against champion Joe Smith Jr in 2022.
Additional reporting from PA