Klarna joins Google Pay
Swedish fractional payment giant Klarna has taken another (giant) step in the expansion of its service. It has announced that it has signed a partnership agreement with web giant Google, making its services available via Google Pay.
FACTS
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Klarna's BNPL (Buy Now, Pay Later) services will therefore be accessible directly from Google Pay from 2025.
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Initially, American users will be able to access the service via their Google Wallet. This will enable them to choose Klarna's interest-free payment options when making a payment online or in-store.
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Klarna will leverage Google Pay to offer several payment facilities for purchases made via Google Pay starting at $35:
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its split or deferred payment offer,
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financing options at competitive rates.
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Users of the service will then be able to track their purchases via the Klarna app (delivery tracking, returns and refunds management).
CHALLENGES
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Continued expansion: the new partnership signed between Google and Klarna primarily concerns the US market alone. However, it illustrates the Swedish BNPL giant's ever-expanding ambitions for the global market, following the recent signing of other important partnerships, with Adyen and Xero for example. Adyen will primarily enable Klarna to establish itself in the physical retail sector, while Xero will enable Klarna to address its BNPL offerings to SMEs.
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Conquering Wallets: Klarna's objective is clear: to make its solutions available for every payment, without any additional effort on the part of its users. And today, with Google, Klarna can ensure its positioning on a leading wallet.
MARKET PERSPECTIVE
- This strategic decision comes just days after another major announcement concerning the expansion of Klarna's services worldwide. Indeed, the Swedish BNPL giant can also count on the support of Worldpay, a globally-operating payment service provider (PSP), to offer its services by default across the globe since early November.
- With Google's support, Klarna's democratization seems to be well and truly underway, reinforcing its global reach. Klarna also recently announced its listing on the US stock exchange, marking a key step in its strategic development.