Fintech firms Klarna and Adyen have partnered to integrate Buy Now Pay Later (BNPL) options in store, moving beyond e-commerce.
- Klarna aims to access the substantial $11tn in-store shopping market through Adyen’s 450,000 payment terminals.
- Consumers will use Klarna for in-store purchases by scanning QR codes on Adyen terminals, finalized through mobile devices.
- Historically focused online, Klarna’s collaboration with Adyen marks a significant shift to omnichannel retail.
- Adyen’s established global presence supports Klarna’s strategy to offer flexible payments across varied consumer touchpoints.
The recent partnership between Klarna and Adyen represents a strategic move to make Buy Now Pay Later (BNPL) options more accessible in physical retail environments, expanding beyond the e-commerce space. This collaboration sets the stage for Klarna’s integration into the extensive network of over 450,000 payment terminals operated by Adyen, a company renowned for its comprehensive payment and banking solutions.
Klarna’s objective with this initiative is to penetrate the $11 trillion in-store shopping market, which remains largely untapped by BNPL services. By leveraging Adyen’s technological infrastructure, Klarna intends to provide consumers with the ability to pay for in-store purchases through a seamless process involving QR code scanning at Adyen’s terminals, followed by transaction completion on their mobile devices.
Klarna has predominantly catered to online shoppers with its instalment-based payment solutions. However, this partnership with Adyen signifies a considerable shift towards incorporating physical retail into its business model. Such an omnichannel approach is expected to elevate consumer engagement and enhance the payment experience in brick-and-mortar settings.
David Sykes, Klarna’s Chief Commercial Officer, elaborated on the company’s ambition: “We want consumers to be able to pay with Klarna at any checkout, anywhere.” This partnership is seen as pivotal in advancing Klarna’s reach within physical retail spaces, offering consumers flexibility and convenience in their purchasing decisions.
Adyen, headquartered in the Netherlands and granted a UK banking licence last year, offers robust point-of-sale, digital payments, and embedded banking products that align perfectly with Klarna’s service expansion goals. This collaboration not only bolsters Klarna’s market penetration but also strengthens Adyen’s offering by integrating a leading BNPL provider into its ecosystem.
The strategic partnership between Klarna and Adyen is set to significantly transform the landscape of in-store financing by introducing BNPL options to physical shoppers across multiple regions.
