Klarna scores global payment deal with Stripe to expand reach ahead of blockbuster U.S. IPO
Klarna has agreed a major new distribution partnership with fellow fintech unicorn Stripe, in a bid to expand reach and add more merchants in the lead-up to its upcoming listing in the U.S.
The Swedish firm's buy now, pay later (BNPL) service will become available as a payment option for merchants using Stripe's payment tools in 26 countries, the two companies told CNBC Tuesday.
This isn't the first time Klarna and Stripe, which is dual-headquartered in San Francisco, have partnered. In 2021, at the height of the Covid-19 pandemic-fueled fintech craze, Stripe announced Klarna would offer its BNPL plans to the firm's merchants — but in a more limited capacity.
The new deal comes with improve functionality for Stripe merchants, including the ability to A/B test Klarna and measure real-time conversion rates.
BNPL plans are installment loans that allow a consumer to buy something online or in store and then pay off their debt, either at a later date or over a period of equal monthly installments. BNPL arrangements have become a popular way for people to spread the cost of everyday purchases.
The new tie-up with Stripe gives Klarna a big boost at a time when it's gearing up for a hotly anticipated initial public offering. Klarna confidentially filed to IPO in the United States in November. The company could fetch a valuation of as much as $20 billion, according to a Bloomberg News report out last year.
Klarna makes money from the fees that retailers pay on each transaction processed through its platform. In return for giving Klarna visibility as a payment option in its checkout tools, Stripe will get a share of the money Klarna makes from a given transaction.
Klarna declined to disclose financial terms of its deal with
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