Buy now, pay later (BNPL) FinTech Klarna is partnering with online payments infrastructure company Stripe, allowing millions of online businesses across the U.S. and 19 countries in Europe to offer Klarna’s installment payment options to customers, according to a Tuesday (Oct. 26) press release.
As part of the collaborative effort, Stripe users in 20 countries can offer Klarna as a payment option, while Klarna will use Stripe to accept payments from customers in the U.S. and Canada, the release states.
In addition, after a customer’s initial purchase from a retailer is funded by Klarna, the subsequent repayments are all processed by Stripe. Following tests with Stripe that showed increased performance and reliability, Klarna decided to have Stripe process roughly 90% of its payment volume in the U.S. and Canada.
“Over the past years, Klarna and Stripe redefined the eCommerce experience for millions of consumers and global retailers. Together with Stripe, we will be a true growth partner for retailers of all sizes, allowing them to maximize their entrepreneurial success through our joint services,” said Koen Köppen, Klarna’s chief technology officer. “By offering convenience, flexibility and control to even more shoppers, we create a win-win situation for retailers and consumers alike.”
Tuesday’s announcement comes on the heels of Klarna announcing changes to its services in the U.K. in advance of new regulations underway, as PYMNTS reported. As part of the modifications, Klarna will clearly identify BNPL as a credit offering that carries penalties for missed payments. At checkout, customers can also choose a new “Pay Now” feature and can opt to spread out payments for weeks or months.
In May, Klarna opened a London headquarters and a larger office in Manchester, as PYMNTS reported. The company plans to double its U.K. staff of 200 within the year. More than 14 million shoppers and 13,000 retailers in the U.K. use Klarna.
Related news: Klarna Opens New UK Headquarters