Klarna announced on Thursday a partnership with fintech company Adyen to integrate its buy now, pay later (BNPL) services into physical payment terminals. This agreement will see Klarna’s payment option available at over 450,000 Adyen terminals across brick-and-mortar locations.
While BNPL has primarily been associated with online shopping, Klarna aims to expand its reach into physical retail, responding to a growing demand for in-store payment flexibility. The partnership will initially launch in Europe, North America, and Australia, with plans for broader implementation in the future.
Klarna’s BNPL service allows consumers to divide their purchases into interest-free installments, targeting a market that currently represents about 5% of global e-commerce, according to the company. This move follows a previous collaboration with Adyen focused on e-commerce payments.
David Sykes, Klarna’s Chief Commercial Officer, stated, “We want consumers to be able to pay with Klarna at any checkout, anywhere.” He emphasized the partnership’s role in enhancing flexible payment options on the high street.
Adyen’s head of EMEA, Alexa von Bismarck, echoed this sentiment, highlighting the importance of consumer choice at checkout.
Earlier this year, Klarna sold its online checkout solution, allowing it to focus more on its partnerships with payment gateways like Adyen, Stripe, and Checkout.com. This collaboration comes as Klarna is considering an initial public offering (IPO), with CEO Sebastian Siemiatkowski suggesting that a 2024 IPO is a possibility.
In August, Klarna also introduced a checking account-like product, Klarna Balance, and cashback rewards to encourage users to centralize their financial activities on its platform.
Despite the growth of BNPL, the model faces scrutiny from consumer advocates who warn that it may encourage overspending. Regulatory bodies are moving toward creating frameworks for BNPL services, with the U.K. Labour government set to propose new regulations soon.
City Minister Tulip Siddiq indicated in July that new proposals would be forthcoming after previous delays in regulation efforts for BNPL services.

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