Fintech heavyweights Klarna and Stripe join forces to expand ‘buy now pay later’ offering

Key takeaways:

  • Stripe has announced that it has agreed to partner with Klarna. Now, Stripe’s merchants will have access to Klarna’s buy now pay later (BNPL) method. 
  • This partnership is tipped to be Stripe’s best foot forward amid the growing competition within the BNPL market. 
  • Klarna and Stripe are some of the largest private fintech companies in the world. 

Fintech companies Klarna and Stripe have entered a strategic partnership. With this move, online merchants on Stripe can offer Klarna’s payment option to their customers. 

This deal could potentially help Stripe stamp its authority in the highly competitive BNPL market landscape. In recent months, competitors such as PayPal and Square have made great progress in the BNPL space. 

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How does this deal impact both the firms?

Stripe enables businesses to accept online payments. It said that the partnership will simplify adding Klarna as a payment option on its platform. If you see Klarna’s track record, it typically partners with stores directly to add its checkout button. However, this recent development could provide Klarna access to a much larger audience. 

Koen Koppen, Chief Technology Officer at Klarna said that with Stripe, Klarna will serve as a growth partner for all types of retailers. This partnership will provide them with all the tools they need to maximize their entrepreneurial success. 

This partnership will allow online businesses that use Stripe across 19 countries in Europe and the add Klarna’s payment option. 

Consumers are growing fond of BNPL worldwide

Consumers are increasingly opting for the BNPL payment option across the globe as it enables them to purchase products immediately. This payment model allows them to pay for their purchases in installments, typically between 3 to 4 months. 

This no-interest short-term deferred payments alternative increases conversions and revenues for online sellers. For instance, according to research by Klarna, online merchants that were offering BNPL during checkout saw a 30% rise in conversion rates and a whopping 41% increase in average order value. 

More about Klarna

Klarna was founded in 2005 and since then has established itself as one of the biggest European fintech companies. 

SEE ALSO: Monzo Pulls Back U.S Banking Licence Application Due to Regulatory Roadblocks

Feature Image Source: Klarna

Karandeep V

Karandeep V

Karandeep was born in Pune, Maharashtra, an upcoming metropolitan city in the Western region of India. While most members of his family are engineers, he had different ideas. He was more inclined toward exploring the non-technical aspects of a business, which is why he studied Bachelors of Business Administration at Symbiosis International University, Pune.  Having said that, his love for new and upcoming technologies remained intact, which is why he has written extensively about technology throughout his career. After a brief stint with a gaming company at the beginning of his career, he discovered that his love for writing was not temporary.  Being a tech geek, he always liked installing and playing around with new applications on his mobile devices and the home desktop. He was fascinated by how technology can simplify even the most mundane and complex tasks with just a few commands. He keeps a close eye on how businesses use different tools to streamline their operations to boost productivity and efficiency. At ToolsMetric, he writes product reviews that cover the main features and specifications of different enterprise applications. The sheer amount of innovation and hard work that goes into building these tech solutions is one of the reasons why Karandeep loves reviewing these tools. Besides product reviews, he also writes interesting news articles and blogs that track the latest developments in the tech industry.  When he is not writing, you can find him rooted to his seat playing video games, watching movies, or supporting his favorite football team. Since his childhood, he has always loved to travel and explore new places. Traveling is a major part of his life due to a myriad of reasons such as experiencing new cultures, food, and traditions. His other hobbies include playing football, cooking, and running.  You can find him on LinkedIn here.

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