Stripe, an Irish-American financial services company, published an announcement about a strategic partnership with Klarna, a Swedish fintech company. The deal is profitable for both sides. From now on, Stripe users in 20 countries will be able to offer Klarna as an additional payment option for their customers, making online orders even more convenient. And Klarna will be able to use Stripe infrastructure to accept payments from buyers in the United States of America and Canada and improve coverage in 19 countries of Europe: Austria, Belgium, Denmark, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, the Netherlands, Norway, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom.
One of the options offered by Klarna to the customers is BNPL - “Buy Now Pay Later”. It allows receiving goods right away while the payment can be postponed and split into several transactions. This option has become more and more popular in recent years, so no wonder that merchants are also seeking a way to offer it to their customers. According to Karna’s research, adding their payment methods to checkout allows the businesses to get an average conversion increase up to 30%, average order value increase up to 41%, and reach new customer segments.
Stripe is also a preferred payments partner for consumer purchases made with Klarna. It means that once a customer makes an initial purchase and it is funded with Klarna, all the following repayments will be processed by Stripe.
Also, initial tests have shown that Stripe allows reaching significant improvements in performance and reliability. Thus, Klarna decided to rely on its infrastructure even more than it was planned before. The majority of the payments made in Canada and the United States of America will be processed by Stripe.