Swedish Buy Now, Pay Later (BNPL) platform Klarna announced a strategic partnership with Irish-American payment processing platform Stripe.

The partnership will allow millions of businesses across the US and 19 countries in Europe running on Stripe to offer Klarna’s flexible payment options to their consumers.

The announcement also includes a deeper collaboration between Klarna and Stripe.

Stripe is now Klarna’s preferred payments partner for consumer purchases. After a customer’s initial purchase from a retailer is funded by Klarna, the subsequent repayments are all processed by Stripe as well.

After initial tests with Stripe yielded significant improvements in reliability and performance, Klarna decided to shift even more of its payments volume to Stripe than initially planned.

Klarna will now rely on Stripe to process the majority of its payment volume in the US and Canada.

Koen Köppen, Chief Technology Officer at Klarna said,

“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.”

Will Gaybrick, Chief Product Officer at Stripe said,

“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.”