Klarna is advancing its buy now, pay later (BNPL) services by partnering with Adyen to offer installment payment solutions in physical stores across North America, Europe, and Australia. This collaboration aims to enhance payment flexibility for consumers, allowing them to use Klarna’s services directly at Adyen’s payment terminals. The move is significant for Klarna, reflecting its efforts to increase its presence in physical retail environments, complementing its established online presence. Klarna continues to push the boundaries of payment solutions by integrating innovative methods that adapt to the evolving retail landscape.
Why Partner with Adyen?
Adyen has been identified as the first global payment service provider to integrate Klarna’s BNPL methods at its physical payment terminals worldwide. This integration not only strengthens Klarna’s foothold in the physical retail market but also extends the reach of Adyen’s terminals by offering more diverse payment options.
“The move is a significant milestone for Klarna, which has been steadily growing its presence in physical stores in recent years,” Klarna remarked, highlighting the importance of this strategic move.
By partnering with Adyen, Klarna benefits from Adyen’s extensive payment network and technological capabilities.
How Does the Pilot Program Work?
The initiative begins with a pilot program that is set to expand into a broader rollout in the upcoming months. This phased approach allows Klarna and Adyen to fine-tune their service offering, ensuring a seamless customer experience. Klarna’s Chief Commercial Officer, David Sykes, emphasized the ambition to make Klarna accessible worldwide, stating,
“Our strong partnership with Adyen gives a massive boost to our ambition to bring flexible payments to the high street in a new way.”
This initiative will likely influence how payment services are managed in physical retail spaces.
In past developments, Klarna has steadily expanded its offerings through strategic collaborations, including a recent partnership with Xero. This partnership allows small businesses on Xero’s platform to extend BNPL options to their customers. Bharathi Ramavarjula from Xero underscored the value of such offerings by stating,
“We know that maintaining a healthy cash flow is critical to a successful business.”
Such collaborations illustrate Klarna’s ongoing commitment to providing diverse financial solutions that cater to both consumer needs and business growth.
Research by PYMNTS Intelligence reveals that brick-and-mortar merchants often face challenges in providing BNPL options compared to online merchants. While 35% of merchants offer BNPL online, only about half extend this option in physical stores. This gap highlights the potential impact of Klarna and Adyen’s partnership in addressing merchants’ needs by simplifying access to diverse payment solutions at checkout points. The integration of BNPL options into physical stores is a crucial step towards reducing this disparity.
Klarna’s collaboration with Adyen marks a strategic expansion of its BNPL services into physical retail outlets, aiming to leverage Adyen’s robust payment infrastructure. This collaboration is expected to enhance consumer convenience by providing flexible payment solutions across various regions. As Klarna continues to grow its partnerships and services, it remains crucial to observe how these developments influence consumer behavior and merchant adoption of BNPL options. The integration of Klarna’s services within Adyen’s payment network illustrates a significant step towards providing comprehensive financial solutions in an increasingly diverse payment landscape.
