- Klarna’s BNPL service expands to 26 countries via Stripe.
- Partnership aims to boost Klarna’s IPO prospects and revenue.
What happened: Klarna partners with Stripe ahead of $20B IPO
Klarna, the Swedish fintech unicorn, has announced a major distribution partnership with Stripe, the U.S.-based payments giant. The collaboration will make Klarna’s Buy Now, Pay Later (BNPL) service available as a payment option for merchants using Stripe’s platform in 26 countries worldwide.
This move is part of Klarna’s ongoing strategy to expand its reach and bolster its upcoming initial public offering (IPO) in the U.S. This new deal significantly enhances Stripe’s functionality, providing its merchants with the ability to A/B test Klarna’s BNPL options and measure real-time conversion rates.
The two companies have previously worked together, but this new agreement will bring Klarna’s services to a much broader audience, especially in light of Stripe’s increasing dominance in the global payments sector. Additionally, Klarna’s recent decision to sell its checkout business to a consortium of investors sets the stage for this enhanced partnership.
As Klarna prepares for a potential $20 billion IPO, it hopes that this collaboration with Stripe will fuel further growth in the months to come.
Also read: Klarna now available at checkout on Apple Pay in Canada
Also read: Klarna hit with $50M fine for anti-money laundering violations
Why it’s important
This partnership is highly significant for Klarna as it continues to expand its footprint in the competitive BNPL space. By teaming up with Stripe, Klarna gains access to a vast network of new merchants, which could translate into higher transaction volumes and, ultimately, greater revenues.
The BNPL market, which has gained massive traction in recent years, has been a key driver of Klarna’s growth. Stripe’s involvement could also offer Klarna a strategic advantage, as it allows for the integration of real-time performance metrics, making it easier to optimise the service and increase its appeal to merchants.
Moreover, this partnership comes at a pivotal time for both companies, with Klarna eyeing a significant IPO in the U.S. The agreement not only promises to bolster Klarna’s merchant base but also positions Stripe as a major player in the BNPL sector.
As more businesses embrace BNPL options, the financial benefits for both Klarna and Stripe are expected to grow. The success of this deal could also serve as a model for future partnerships in the fintech space.
