Klarna partners with Stripe to expand reach and add more merchants
Popular “buy-now, pay-later” firm Klarna is aiming to return to profit by summer 2023. The company has recently announced a major new distribution partnership with fellow fintech unicorn Stripe to enhance its reach and attract more merchants ahead of its upcoming listing in the U.S.
Klarna’s buy now, pay later (BNPL) service will now be available as a payment option for merchants using Stripe’s payment tools in 26 countries. This partnership marks a significant step for Klarna as it prepares for its anticipated initial public offering.
BNPL plans offered by Klarna allow consumers to make purchases online or in-store and pay off their debt at a later date or through equal monthly installments. This payment option has gained popularity as a way for individuals to spread the cost of everyday purchases.
Stripe and Klarna previously partnered in 2021, with Stripe offering Klarna’s BNPL plans to its merchants during the peak of the Covid-19 pandemic. The new tie-up between the two companies is expected to drive incremental revenue gains and benefit both parties involved.
Klarna, founded in 2005, has seen fluctuations in its valuation over the years. Despite facing challenges, the company remains optimistic about its growth potential and the value it provides to both consumers and merchants.
Stripe, on the other hand, has witnessed changes in its valuation as well. The company, known for its payment processing services, continues to innovate and adapt to the evolving fintech landscape.
Overall, the partnership between Klarna and Stripe highlights the ongoing evolution of the fintech industry and the importance of collaboration in driving success.
Key Takeaways:
- Klarna partners with Stripe to expand reach and add more merchants
- BNPL plans offered by Klarna allow consumers to spread the cost of purchases
- The partnership is expected to drive incremental revenue gains for both companies
- Both Klarna and Stripe have seen fluctuations in their valuations but remain optimistic about their growth potential