Klarna has entered into a new distribution partnership with
Stripe to expand its reach ahead of its planned IPO in the US The collaboration
will make Klarna’s buy now, pay later (BNPL) service available to merchants
using Stripe’s payment tools in 26 countries.
The deal is significant for Klarna, which is preparing for
its IPO in the United States. The company confidentially filed for the listing
in November and could be valued at up to $20 billion. Klarna earns revenue
through fees from retailers on each transaction, while Stripe will receive a
share of the transaction fees, as reported by CNBC.
Klarna’s Valuation Fluctuates Ahead of IPO Plans
This follows a previous partnership between the two
companies in 2021, where Klarna’s BNPL service was offered to Stripe’s U.S.
merchants. BNPL plans allow consumers to spread the cost of purchases through instalments,
a popular option for many shoppers.
Klarna has reported growth, adding 100,000 new merchants in
2024, with an increasing growth rate since the Stripe integration in October.
Klarna’s valuation has fluctuated, reaching a peak of $46 billion in 2021
before falling to $6.7 billion in 2022.
Stripe Sees Revenue Growth with BNPL Service
The deal also benefits Stripe, potentially increasing its
revenue. Stripe’s study found that businesses offering BNPL saw up to 14% more
revenue due to higher conversion rates and larger order values. BNPL volume
grew 172% on Stripe last year.
Stripe, which is also expected to IPO soon, saw its
valuation drop from $95 billion in 2021 to $50 billion in 2023, with a reported
rebound to $70 billion in a secondary share sale.
Klarna Partners with Adobe Commerce for BNPL Services
Earlier, Klarna
announced a partnership with Adobe Commerce, enabling merchants to offer
its BNPL services and other flexible payment options, as reported by Finance Magnates.
This collaboration allows Klarna to expand its payment
flexibility to more consumers. By integrating Klarna’s solutions with Adobe
Commerce, merchants can provide additional payment choices.
The partnership aims to leverage the strengths of both
companies to benefit customers. It is expected to help merchants by offering
more payment options and potentially boosting sales through Klarna’s BNPL
services.
Klarna has entered into a new distribution partnership with
Stripe to expand its reach ahead of its planned IPO in the US The collaboration
will make Klarna’s buy now, pay later (BNPL) service available to merchants
using Stripe’s payment tools in 26 countries.
The deal is significant for Klarna, which is preparing for
its IPO in the United States. The company confidentially filed for the listing
in November and could be valued at up to $20 billion. Klarna earns revenue
through fees from retailers on each transaction, while Stripe will receive a
share of the transaction fees, as reported by CNBC.
Klarna’s Valuation Fluctuates Ahead of IPO Plans
This follows a previous partnership between the two
companies in 2021, where Klarna’s BNPL service was offered to Stripe’s U.S.
merchants. BNPL plans allow consumers to spread the cost of purchases through instalments,
a popular option for many shoppers.
Klarna has reported growth, adding 100,000 new merchants in
2024, with an increasing growth rate since the Stripe integration in October.
Klarna’s valuation has fluctuated, reaching a peak of $46 billion in 2021
before falling to $6.7 billion in 2022.
Stripe Sees Revenue Growth with BNPL Service
The deal also benefits Stripe, potentially increasing its
revenue. Stripe’s study found that businesses offering BNPL saw up to 14% more
revenue due to higher conversion rates and larger order values. BNPL volume
grew 172% on Stripe last year.
Stripe, which is also expected to IPO soon, saw its
valuation drop from $95 billion in 2021 to $50 billion in 2023, with a reported
rebound to $70 billion in a secondary share sale.
Klarna Partners with Adobe Commerce for BNPL Services
Earlier, Klarna
announced a partnership with Adobe Commerce, enabling merchants to offer
its BNPL services and other flexible payment options, as reported by Finance Magnates.
This collaboration allows Klarna to expand its payment
flexibility to more consumers. By integrating Klarna’s solutions with Adobe
Commerce, merchants can provide additional payment choices.
The partnership aims to leverage the strengths of both
companies to benefit customers. It is expected to help merchants by offering
more payment options and potentially boosting sales through Klarna’s BNPL
services.
This post is originally published on FINANCEMAGNATES.
