BNPL giant Klarna chooses Adyen as its global acquiring partner
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Klarna, one of the leading buy now, pay later companies, has decided to team up with Adyen as its global acquisition bank. The new partner will be responsible for collecting card-based payments from customers, as well as their banks of choice. The funds will then be delivered to merchants and retailers, regardless of whether the payments are made online or in person.
Adyen enters a decade-long deal as an acquiring partner for Klarna
The partnership with Klarna means that Adyen will now be able to offer access to an entire suite of different payment methods. One option that is expected to be quite popular is the interest-free Pay Now, and another includes numerous pay later options offered to merchants’ customers. The deal will last for the following ten years.
Thanks to its new relationship with Klarna, Adyen will now be able to assume the role of an acquiring bank for the first time ever. It will operate on behalf of Klarna’s multiple consumer offerings, and its reach will include Europe, North America, and Asia in 2024.
Furthermore, the agreement will simplify card payments for Klarna’s customers and retail partners around the world. Right not, it is estimated that the company services over 150 million consumers, while collaborating with over 500,000 partners around the world.
Adyen’s co-CEO, Pieter van der Does, commented on the new partnership, stating that Adyen’s financial technology platform, in combination with Klarna’s various consumer offerings, stands to raise the standard of payments and consumer experiences around the globe.
Klarna has seen massive success with its credit card business
It is worth noting that Klarna, for all its success, still remains relatively new in the credit card business. The company first launched its card in partnership with Visa in January 2022, when it made it available in the UK.
The card allowed users to delay payments of purchases for as long as 30 days, opening up new opportunities for those who were unable to pay the full price of purchased goods on the spot. The opportunities offered by the card are also in line with the Pay in 30 product that the Swedish tech giant offers online.
The company had a million consumers on the waitlist, all of whom were eager to get the fee-paying card when it launched in the US in the summer of 2023. The huge demand was also responsible for the arrival of the firm’s “Pay in 4” service to a physical Visa card form.
