Klarna has expanded its partnership with Stripe, enabling businesses in 25 countries to instantly offer its AI-powered global payments and shopping assistant services through Stripe’s financial infrastructure platform.
This strategic partnership aims to increase revenue for merchants by offering flexible payment methods, including buy now, pay later (BNPL) options, to improve customer conversion rates and drive growth.
Klarna has already witnessed a significant impact, doubling the number of new merchants adopting its services in Q4 2024 compared to earlier quarters.
The firm provides consumers with multiple payment choices, including immediate payments, short-term, interest-free BNPL options, and longer-term financing.
It emphasises consumer-friendly credit options, boasting lower late payment and default rates compared to traditional credit products.
Stripe’s new testing functionality empowers businesses to instantly measure the incremental revenue generated by Klarna compared to other payment options.
This feature aims to highlight Klarna’s potential to improve conversion rates and average order values.
David Sykes, chief commercial officer at Klarna, said: “At the core, Klarna is a global network connecting 85 million active consumers with retailers. The more retailers we add, the more consumers we attract and vice versa. The ambition is to make Klarna payments available everywhere, for everything, all the time. Stripe is now a top choice for both Fortune 500 companies and the world’s most ambitious startups, and we see them as a great distribution partner for us.”
Jeanne DeWitt Grosser, chief business officer at Stripe, said: “Stripe is now the easiest way for businesses to offer Klarna. Thanks to our partnership, businesses on Stripe will continue to grow their revenue and offer consumers more options in how they can pay.”
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