Klarna scores major payment deal with Uber ahead of hotly anticipated IPO
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Klarna on Wednesday announced a global partnership with Uber to power payments for the ride-hailing giant's Uber and Uber Eats apps.
The partnership will see the Swedish financial technology firm added as a payment option in the U.S., Germany, and Sweden, Klarna said in a statement.
In the U.S., Germany, and Sweden, Klarna will roll out its «Pay Now» option, which lets customers pay off an order instantly in one click, in the Uber and Uber Eats apps. Users will be able to track all their Uber purchases in the Klarna app.
The company will also offer an additional payment option for Uber users in Sweden and Germany which allows users to bundle purchases into a single, interest-free payment that gets taken out of their monthly salary.
Interestingly, the company isn't rolling out installment-based buy now, pay later plans, arguably its most popular service offering, on Uber's platforms — only immediate payments and monthly payments.
Sebastian Siemiatkowski, CEO and Co-Founder of Klarna, said in a statement Wednesday that the deal represented a «significant milestone» for the company.
«Consumers can Pay Now quickly and securely in full, which already accounts for over one third of Klarna's global volumes, and more easily manage their finances in one place,» Siemiatkowski said.
Klarna declined to disclose financial terms of its deal with Uber.
The Uber deal marks one of the most significant merchant wins for Klarna of late, and comes as the European fintech giant is rumored to be gearing up for a blockbuster initial public offering that could value the firm at north of $20 billion.
Klarna began having detailed discussions with investment banks to work on an IPO that could happen as early as the third
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