Klarna Partners With Stripe to Expand Buy Now, Pay Later to More Online Merchants
Klarna entered into a strategic partnership with payments solution Stripe to enable online merchants on Stripe to offer Klarna’s flexible payment option to their consumers.
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Globally, consumers are increasingly choosing the “Buy Now Pay Later” payment option, which allows them to receive products immediately and spread payments out over time, usually 3 to 4 months.
Offering this popular no-interest short-term deferred payments program can boost conversions and revenue for online sellers. For example, Klarna’s research found that online merchants offering Klarna BNPL at checkout realized an average 30% increase in conversion and a 41% increase in average order value.
In addition, some retailers discovered that 40% of Klarna shoppers were new to their brand, growing their customer base because they offered easy deferred payments.
Through this partnership, millions of online businesses across the US and 19 countries in Europe that already use Stripe will be able to add Klarna’s flexible payment options to grow their businesses.
“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. By offering convenience, flexibility, and control to even more shoppers, we create a win-win situation for both retailers and consumers alike.”Koen Köppen, Chief Technology Officer at Klarna
Stripe to Also Process Many Payments for Klarna
But this new collaboration between Klarna and Stripe goes even further. Stripe is also now Klarna’s preferred payments partner for consumer purchases as Stripe will now manage the repayments by customers.
After initial tests with Stripe showed significant improvements in reliability and performance, Klarna decided to shift a much larger payments volume to Stripe than planned.
The company will now rely on Stripe to process around 90% of its total payment volume in the US and Canada.
“We’re thrilled to partner with Klarna so that millions of businesses on Stripe globally can offer increased payment flexibility. Klarna’s payment options are a powerful tool for online businesses to attract more customers, boost conversion rates, increase basket sizes, and thus grow their revenue.”Will Gaybrick, Chief Product Officer at Stripe
This is another big strategic partnership for Klarna as they just unveiled a collaboration with WIX, one of the largest website development platforms.
Here is more information for Stripe users on how Klarna can help them grow their business.
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Editorial Note: This post is from a Company Press Release and may have been modified for clarity.