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 U.S.to 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.
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Feature Image Source: Klarna
