Klarna has announced a strategic partnership with Adyen to extend its BNPL services into physical retail stores.
- Klarna will utilize Adyen’s payment terminals to make its BNPL options available in-store, targeting a significant shift from e-commerce.
- The BNPL provider aims to tap into the $11 trillion in-store shopping market, expanding its reach beyond the current $3 trillion online market.
- Consumers will be able to use Klarna by scanning QR codes on Adyen terminals, simplifying the payment process within the Klarna app.
- This partnership marks an ambitious step for Klarna, showcasing its commitment to flexible payments across various shopping environments.
In a significant move to expand its services beyond the digital world, Klarna has entered into a partnership with Adyen. This collaboration aims to bring Klarna’s ‘Buy Now, Pay Later’ (BNPL) option to physical stores globally, marking an evolution in consumer payment flexibility. Klarna plans to integrate its installment payment solutions with Adyen’s 450,000 payment terminals worldwide.
Traditionally, BNPL services, like those offered by Klarna, have been confined mainly to the realm of e-commerce, a sector projected by Worldpay to account for a $3 trillion market. However, by strategically partnering with Adyen, Klarna is positioned to penetrate the much larger in-store shopping market, valued at $11 trillion. The integration allows customers to access Klarna’s flexible payment solutions via QR codes scanned at Adyen payment terminals, with completion managed seamlessly within Klarna’s app on mobile devices.
This isn’t Klarna’s first foray into in-person shopping solutions. The Swedish fintech giant had previously introduced a payment card designed for in-store purchases. However, the current partnership with Adyen signifies a more extensive initiative to cater to the high demand for in-store transaction flexibility. “We want consumers to be able to pay with Klarna at any checkout, anywhere,” stated David Sykes, Klarna’s Chief Commercial Officer, emphasizing the global reach and accessibility this deal aims to provide for consumers.
Adyen, a powerhouse in digital and point-of-sale payment solutions, offers a robust platform for Klarna’s expanded physical presence. With its headquarters in the Netherlands and a UK banking license secured last year, Adyen provides comprehensive services, including point-of-sale processing and embedded banking products. This collaboration is poised to redefine the consumer checkout experience across Europe, North America, and Australia.
This strategic partnership underscores a pivotal step in Klarna’s expansion into the physical retail space, enhancing consumer payment flexibility globally.
