Stripe and Klarna have announced a new strategic partnership that will enable businesses using Stripe's payment gateway to enable their customers to buy now and pay later with Klarna. Buy Now, Pay Later options have become increasingly popular in recent years as they allow consumers to receive products first while spreading their payments over time. Businesses are also benefiting from this new payment model, as the flexibility it offers can dramatically increase conversions and increase revenue. According to a Klarna study, businesses that offer their services at checkout generated an average 30% increase in conversion and a 41% increase in average order value. Additionally, some retailers have found that 40% of Klarna shoppers are new to their brand, allowing them to capture entirely new customer segments.
Greater payment flexibility
By partnering with Stripe, Klarna's flexible payment options will now be available to millions of e-commerce businesses using Stripe in the US and 19 countries in Europe. However, the two companies have also decided to continue their collaboration and Stripe will now be Klarna's preferred payment partner for consumer purchases. This means that once Klarna finances a customer's purchase from a retailer, Stripe will also process subsequent refunds. After initial tests with Stripe that dramatically improved reliability and performance, Klarna decided to transfer even more payment volume to the company than initially expected. Going forward, Klarna will now rely on Stripe to process most of its payment volume in the US and Canada. Klarna's CTO Koen Köppen provided more information on the company's new strategic partnership with Stripe in a press release, saying: “Over the past few years, Klarna and Stripe have redefined the e-commerce experience for millions of customers. global consumers and retailers. With Stripe, we will be a true growth partner for retailers of all sizes, enabling them to maximize their business success through our common services. By bringing convenience, flexibility and control to more shoppers, we are creating a win-win situation for retailers and consumers.