Klarna and Stripe enter ‘strategic partnership’

By Daniel Lanyon on Tuesday 26 October 2021

Alternative LendingDigital Banking

Retailers using Stripe can now activate Klarna as the preferred payment method in their checkout within minutes, providing a superior shopping experience to consumers.

Klarna and Stripe enter ‘strategic partnership’
Image source: Klarna

Two fintech behemoths, Klarna and Stripe, have entered into a strategic partnership.

Retailers using Stripe can now activate Klarna as the preferred payment method in their checkout.

Klarna will now be available via Stripe to all retailers based in Austria, Belgium, Denmark, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Netherlands, Norway, Slovakia, Slovenia, Spain, Sweden, United Kingdom and the United States of America.

The deal creates a huge potential growth seam for Klarna’s payments business, an area it is increasingly promoting in the UK alongside its core buy now, pay later offering.

The two companies also say they are planning to “deepen and expand their partnership” to more countries and products in the future. 

Both companies, which have a combined market capitalisation - based of their separate private valuations of c.$140bn, are strongly rumoured to be heading for initial public offerings in the next few years. 

Koen Köppen, Chief Technology Officer at Klarna: “Over the past years, Klarna and Stripe redefined the e-commerce experience for millions of consumers and global retailers. 

Together with Stripe, we will be a true growth partner for our retailers of all sizes, allowing them to maximize their entrepreneurial success through our joint services. By offering convenience, flexibility, and control to even more shoppers, we create a win-win situation for both retailers and consumers alike.” 

Will Gaybrick, Chief Product Officer at Stripe added: "We're thrilled to partner with Klarna so millions of businesses on Stripe globally can offer increased payment flexibility. Klarna’s payment options are a powerful tool for online businesses to attract more customers, boost conversion rates, increase basket sizes, and thus grow their revenue.”

Klarna says the early results of retailers using Stripe show that the integration of Klarna’s payment method led to an average 27 per cent increase in sales. 

In addition to enabling retailers already using Stripe to activate Klarna in their checkout, both companies have also announced plans to strengthen the partnership even further. 

Stripe is now Klarna’s preferred payments partner for consumer purchases pre-funded by Klarna in the US and Canada. 

Klarna has shifted more payment processing volume to Stripe in recent months in North America. It now partners with Stripe for about 90 per cent of its payments volume in the US and Canada. 

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