Klarna is set to strengthen its position as the market leader in the BNPL with a partnership with payment giant's Stripe. The Swedish fintech giant typically partners with stores directly to embed its checkout button. Stripe, as a result, will be able to offer BNPL to its merchant. The move could give Klarna a much broader reach of customers.
As well as partnering globally, Stripe and Klarna said they were also strengthening their relationship in North America. The companies said that Stripe is now used in about 90% of Klarna's payment processing volume in the U.S. and Canada.
Speaking on the latest development, Koen Koppen, Klarna's chief technology officer, said, "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."
Stripe, which helps businesses accept payments online, said the tie-up would make it easier for retailers to add Klarna as a payment option on their website. Stripe said early results showed merchants saw a 27% increase in sales on average after integrating with Klarna, while average order value climbed 41%.
Stripe's deal with Klarna could be a way for the payments giant to capitalize on a fast-growing trend as rivals like Square and PayPal make big moves in the space. Square recently agreed to acquire Australia's Afterpay for $29 billion, while PayPal has its own BNPL service and is buying Japanese rival Paidy for $2.7 billion.