Klarna and Adyen strengthen their partnership in physical commerce

Swedish BNPL giant Klarna and its partner Adyen, a payment platform of Dutch origin, recently announced their strategic decision to strengthen their collaboration. The aim of this development is to integrate Klarna's “Buy Now, Pay Later” (BNPL) option into Adyen's physical payment terminals, thereby strengthening the presence of this payment method on the global market.

FACTS

• Klarna therefore worked with Adyen to introduce its immediate purchase and deferred payment solutions in physical stores.

• How do we do this? By adding Klarna's solutions as a payment option directly onto the Adyen physical payment terminals used by its merchant partners.

• Klarna will be included as a payment option on over 450,000 Adyen payment terminals in physical stores worldwide, in Europe, North America and Australia.

• The two partners have begun this roll-out in a pilot phase, with Klarna services on Adyen terminals to be made more widely available in October.

CHALLENGES

• Strengthening a partnership: The partnership between Adyen and Klarna initially focused on e-commerce. Adyen announced that it would become the sole acquirer of Klarna in all its geographies by December 2023.

• Extending its market reach: The deployment of flexible payment solutions on Adyen terminals represents a new milestone for Klarna, which has been working hard to develop its presence in physical stores in recent years. For example, the Swedish giant strengthened its partnership with Ingenico in January 2023 to extend its in-store services.

MARKET PERSPECTIVE

• Efforts to strengthen the collaboration between Adyen and Klarna take many forms. In addition to announcing the deployment of Klarna's services on Adyen terminals, Adyen is also launching Klarna's Dynamic QR solution. The principle is simple: to make a payment, a customer can scan a QR code displayed on the Adyen terminal and complete the transaction on their mobile device. The customer can then pay using one of Klarna's BNPL payment methods and track their purchase within their Klarna app.

• At the same time, Klarna and Adyen are developing their respective offers. Klarna, for example, has just introduced a new “Apple from Klarna” store within the Klarna app and Klarna.com, where customers can purchase Apple products using its flexible payment options.

• Adyen is also involved in the worldwide roll-out of the Alipay+ solution.