Klarna, a prominent BNPL provider, partners with Adyen, enhancing its physical store presence.
- The collaboration integrates Klarna’s BNPL service with Adyen’s extensive network of payment terminals worldwide.
- This strategic move positions Klarna to enter the substantial $11tn in-store shopping market.
- Klarna’s partnership with Adyen signifies a significant expansion beyond ecommerce.
- Key functionalities include scanning QR codes at checkout, supporting mobile-based payment processes.
Klarna, a leading provider in the ‘Buy now, pay later’ (BNPL) sector, has formed a strategic alliance with the global point-of-sale group Adyen, effectively extending its services beyond the online marketplace. This agreement enables Klarna’s BNPL solutions to be accessible via Adyen’s payment terminals, which are prevalent across regions including Europe, North America, and Australia. The incorporation of Klarna’s services into over 450,000 Adyen terminals marks a pivotal advancement in expanding Klarna’s footprint into physical retail locations.
The decision to integrate with Adyen stems from a desire to penetrate the vast $11 trillion in-store shopping market, a stark contrast to the $3 trillion online shopping market previously dominated by BNPL services. Consumers can now select Klarna as a payment method at checkout via Adyen’s terminals, which involves scanning a QR code and completing transactions through their mobile devices, with payment schedules managed by the Klarna app.
This initiative is not Klarna’s initial venture into the realm of physical retail; the Swedish company had previously deployed a payment card aimed at facilitating in-person BNPL transactions. However, the partnership with Adyen is viewed as a substantive enhancement of Klarna’s strategy to mainstream its flexible payment offerings in traditional retail spaces. David Sykes, Klarna’s Chief Commercial Officer, articulated this ambition, asserting, “We want consumers to be able to pay with Klarna at any checkout, anywhere.”
Adyen, headquartered in the Netherlands, plays a crucial role in this expansion. With a UK banking license granted recently, Adyen is well-equipped to provide a seamless point-of-sale experience, blending digital payments with embedded banking features. The collaboration not only benefits Klarna and Adyen but also presents retailers with more flexible payment solutions, potentially enhancing customer satisfaction and increasing sales.
Klarna’s alignment with Adyen heralds a new era for BNPL services, bridging the gap between digital and physical retail spheres through innovative payment solutions.
