Klarna has expanded its partnership with Stripe, enabling more businesses to offer flexible payment options to customers worldwide.
Founded in 2005 in Sweden, Klarna now serves over 100 million active customers and more than 700,000 businesses, providing buy now, pay later, longer-term financing, and instant payment solutions.
“We’re always thinking about the entire customer journey,”
said Victoria Watmough, Klarna’s Head of Distribution Partnerships.
Since 2019, Stripe has supported Klarna with global payment processing and virtual card issuing.
The partnership was extended last year to allow Stripe-powered businesses in 25 countries to add Klarna instantly at checkout.
This contributed to a doubling of new businesses offering Klarna in Q4 2024 compared with average quarterly adoption, with more than 200,000 businesses now enabled.
Retailers report strong results.
Customised apparel brand INDOCHINO saw a 16% increase in average order value, while OrderMyGear experienced a 67% rise, with Klarna paying businesses upfront and allowing customers to pay over time. The integration now spans retail, entertainment ticketing, travel, healthcare, and automotive services.
The upgraded Klarna API on Stripe delivers full feature access, including Express checkout and on-site messaging.
Stripe’s Optimized Checkout Suite uses AI to tailor payment methods for each shopper.
Alexis Zhu, Head of Strategic Payment Methods at Stripe, said,
“With this Klarna API upgrade, businesses get access to Klarna’s full feature offering and the fastest Klarna integration available anywhere.”
Klarna, a fully licensed bank, also uses Stripe Issuing and Stripe Financial Connections to provide secure, flexible payment options.
The partnership continues to support new markets and currencies, aiming for Klarna to be available wherever Visa, Mastercard, and PayPal are accepted.
Watmough added,
“Our teams are leveraging each other’s skills as we continue to innovate, grow, and jointly reach new markets, businesses, and consumers.”
Featured image credit: Stripe
