Klarna, a Swedish provider of flexible payment services, has announced a strategic partnership with Stripe, based in San Francisco. The partnership will allow millions of businesses running on Stripe to offer Klarna’s flexible payment options to their consumers.
In recent years, consumers around the world have gravitated to popular “Buy Now Pay Later” payment options, which allow them to receive products immediately while spreading their payments out over time. For businesses, offering this flexibility can dramatically increase conversions and boost revenue. In fact, Klarna’s research found that businesses offering Klarna at checkout generated a 30% average increase in conversion and a 41% increase in average order value. Some retailers discovered that 40% of Klarna shoppers were new to their brand, allowing them to win entirely new customer segments.
Indochino, a long-time Stripe user, found exactly that. As a leading provider of men’s apparel and custom suits, Indochino wanted to offer its customers an enhanced checkout experience, with a range of flexible payment options. And, like many modern businesses, it wanted to do so as fast as possible, with minimal engineering effort. “Through the Klarna and Stripe partnership, we were able to get up and running quickly with a tailored service that met our needs perfectly,” said Alex Nazarevich, Vice President, Growth at Indochino.
By partnering with Stripe, Klarna will now make its flexible payment options available to millions of internet businesses already using Stripe across the US and 19 countries in Europe.
Koen Köppen, Chief Technology Officer at Klarna, said: “Over the past years, Klarna and Stripe redefined the e-commerce experience for millions of consumers and global retailers. Together with Stripe, we will be a true growth partner for retailers of all sizes, allowing them to maximize their entrepreneurial success through our joint services. By offering convenience, flexibility, and control to even more shoppers, we create a win-win situation for both retailers and consumers alike.”
The announcement also includes a deeper collaboration between Klarna and Stripe. Stripe is now Klarna’s preferred payments partner for consumer purchases—meaning that, after a customer’s initial purchase from a retailer is funded by Klarna, the subsequent repayments are all processed by Stripe as well. After initial tests with Stripe yielded significant improvements in reliability and performance, Klarna decided to shift even more of its payments volume to Stripe than initially planned. Klarna will now rely on Stripe to process the majority of its payment volume in the US and Canada.
“We’re thrilled to partner with Klarna so that millions of businesses on Stripe globally can offer increased payment flexibility,” said Will Gaybrick, Chief Product Officer at Stripe. “Klarna’s payment options are a powerful tool for online businesses to attract more customers, boost conversion rates, increase basket sizes, and thus grow their revenue.”