Klarna, the AI-powered global payments network and shopping assistant, has strengthened its global partnership with Stripe, a financial infrastructure platform for businesses. Stripe-powered businesses in 25 countries can now instantly offer Klarna to their customers. The improved partnership has already helped Klarna double the number of new merchants offering Klarna for the first time in Q4 2024, compared to previous quarters.

With an engaged customer base and a demonstrated ability to improve conversion, Klarna is a strong growth driver for merchants. A Stripe study found that businesses offering buy now, pay later (BNPL) generated up to 14% more revenue from increased conversion and higher average order values. Stripe has recently launched an industry-first function allowing businesses to instantly A/B test payment methods –including Klarna– without having to write any code. With the new feature, they can immediately see for themselves the incremental revenue that Klarna brings to their business versus other payment methods. 

David Sykes, Chief Commercial Officer, Klarna says: “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, Stripe says: “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.”

Klarna offers consumers a choice of ways to pay including immediate payments, short-term, interest-free BNPL and longer-term financing. While about 30% of the payments Klarna processes are immediate payment, Klarna’s interest-free BNPL products are a much easier-to-manage form of credit with guardrails to protect consumers. Klarna’s late payment and default rates are much lower than those of traditional credit products.