Klarna has significantly expanded its network of UK merchant partners, reporting robust growth in the buy-now-pay-later (BNPL) sector. The Swedish fintech saw an increase to 41,496 partners by October, compared to 30,000 a year prior. Prominent partnerships include Argos, Airbnb, and Boots. Klarna collaborates with Xero for BNPL services in new sectors and partners with Adyen to integrate payments across their terminals.
Klarna, the Swedish financial technology company, has reported a considerable increase in its UK merchant partnerships, highlighting the growing demand for BNPL services in the region. As of October, Klarna has grown its network from approximately 30,000 to 41,496 merchant partners, a testament to its expanding influence in the British market.
Key collaborations over the past year have featured major UK brands, including Argos, Airbnb, and the digital platforms of Boots. These partnerships underscore Klarna’s strategy to cement its presence among leading retailers in the UK, which further enhances its revenue through merchant fees.
In a strategic move to diversify its offerings, Klarna has initiated a collaboration with the small business platform Xero. This partnership aims to provide BNPL options for service-oriented sectors like plumbing and automobile repairs, thereby extending Klarna’s reach beyond traditional retail into service industries.
Another pivotal development involves Klarna’s efforts to tap into the brick-and-mortar retail market. The company has partnered with financial technology giant Adyen, which will integrate Klarna as a payment option across more than 450,000 of its payment terminals. This relationship is expected to amplify Klarna’s physical retail footprint significantly.
The BNPL market is witnessing rapid growth, with Klarna and competitors like Zilch and Clearpay offering interest-free installment loans as alternatives to traditional credit cards. This model has gained considerable traction among millions of UK consumers, with nearly 10 million taking advantage of Klarna’s services over the past year.
Raji Behal, Klarna’s head of Western, Southern Europe, UK & Ireland, reflected on the company’s journey in the UK, stating, “Klarna’s come a long way from the small rented office in Carnaby Street where we launched in the UK ten years ago.” He noted that Klarna now facilitates transactions for one in every ten British retailers.
Despite its dominance in the BNPL sector, about 30 percent of Klarna’s global transactions are for full payment, showcasing the company’s versatility. With over 600,000 retailers worldwide, Klarna continues to see substantial expansion, evidenced by approximately 90,000 new users daily.
Klarna’s strategic expansion in the UK and diversification into new sectors reflects its forward-thinking approach in the BNPL market.
