Klarna has agreed a major new distribution partnership with fellow fintech unicorn Stripe, in a bid to expand reach and add more merchants in the lead

Klarna scores global payment deal with Stripe to expand reach ahead of blockbuster U.S. IPO

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2025-01-14 14:00:15

Klarna has agreed a major new distribution partnership with fellow fintech unicorn Stripe, in a bid to expand reach and add more merchants in the lead-up to its upcoming listing in the U.S.

Klarna's buy now, pay later (BNPL) service will become available as a payment option for merchants using Stripe's payment tools in 26 countries, the two companies told CNBC Tuesday.

This isn't the first time Klarna and Stripe have partnered. In 2021, at the height of the Covid-19 pandemic-fueled fintech craze, Stripe announced Klarna would offer its BNPL plans to the U.S. firm's merchants.

BNPL plans are installment loans that allow a consumer to buy something online or in store and then pay off their debt, either at a later date or over a period of equal monthly installments. BNPL arrangements have become a popular way for people to spread the cost of everyday purchases.

The new tie-up with Stripe gives Klarna a big boost at a time when it's gearing up for a hotly anticipated initial public offering. Klarna confidentially filed to IPO in the United States in November. The company could fetch a valuation of as much as $20 billion, according to a Bloomberg News report out last year.