Stripe and Klarna to Support Revenue Growth by Offering BNPL Options for Clients

Stripe, a US-based provider of payment services, announced yesterday it has established a strategic partnership with Klarna, a shopping and flexible payment provider, to enable millions of businesses from 20 countries running on Stripe to offer Klarna’s flexible payment options to their consumers.

Companies that provide “Buy Now Pay Later” (BNPL) payment options through Klarna at checkout generated a 30% average increase in conversion and a 41% increase in average order value, according to the announcement. Some retailers discovered that 40% of Klarna shoppers were new to their brand, allowing them to win entirely new customer segments.

In addition, 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.”

Shortly before, Fazzaco reported that Stripe would acquire Recko, a leading provider of payments reconciliation software, to help internet businesses automate payments reconciliation.