Klarna, the leading global payments and shopping service, has announced a strategic partnership with Stripe, a global technology company building the economic infrastructure of the internet. This collaboration will enable millions of businesses using Stripe to offer Klarna’s flexible payment options to their customers, enhancing the checkout experience and driving growth.
In recent years, “buy now, pay later” (BNPL) options have surged in popularity worldwide, empowering consumers to purchase goods immediately while spreading payments over time. For businesses, offering this flexibility translates into significant gains in conversion rates and sales. Klarna’s research indicates that merchants integrating Klarna at checkout experience an average 30% increase in conversion rates and a 41% rise in average order value. Notably, some retailers have observed that 40% of Klarna shoppers are new to their brand, unlocking access to entirely new customer segments.
This is precisely the experience of Indochino, a long-time Stripe user and a leading provider of custom-made menswear. Indochino sought to enhance its customer checkout process by offering a range of flexible payment options, aiming for a swift and technically seamless integration. “The partnership between Klarna and Stripe enabled us to rapidly deploy a tailored service that perfectly met our needs,” stated Alex Nazarevich, Vice President, Growth at Indochino.
Through this partnership with Stripe, Klarna extends its flexible payment solutions to millions of online businesses already utilizing Stripe across the US and 19 European countries. This integration simplifies the process for businesses to offer Klarna, allowing them to quickly tap into the growing demand for BNPL services.
Koen Köppen, Chief Technology Officer at Klarna, commented, “Over the past few years, Klarna and Stripe have both been instrumental in reshaping the e-commerce experience for millions of consumers and global retailers. Together with Stripe, we will become an even stronger growth partner for retailers of all sizes, enabling them to maximize their entrepreneurial success through our joint services. By providing convenience, flexibility, and control to even more customers, we are creating a win-win situation for both merchants and consumers alike.”
Today’s announcement also signifies a deeper collaboration, with Stripe becoming Klarna’s preferred payments partner for consumer purchases. This means that after a customer’s initial purchase from a merchant financed through Klarna, subsequent repayments will also be processed via Stripe. Following initial tests that demonstrated significant improvements in reliability and performance, Klarna decided to route a larger share of its payment volume through Stripe than initially planned. Klarna will now process the majority of its payment volume in the US and Canada through Stripe.
“We’re excited to partner with Klarna and bring their flexible payment options to millions of businesses using Stripe globally,” said Will Gaybrick, Chief Product Officer at Stripe. “Klarna’s payment options are a powerful tool for online businesses to attract more customers, increase conversion, boost basket sizes, and drive revenue growth.”
Eligible businesses can find more information and activate Klarna for their customers here.
