In a move to “simplify payments”, the financial technology platform Adyen, has announced that it is expanding its partnership with Klarna, an AI-powered global payments network. The two companies have worked together for over 10 years, with Adyen offering Klarna's payment methods to its merchant customers.

Adyen and Klarna Extend Global Partnership

Under the new strategic partnership, Adyen will begin serving as the acquiring bank for Klarna's various consumer payment offerings, starting in Europe, North America, and Asia in 2024. As the payment provider, Adyen will help simplify card payments for Klarna's 150 million consumers and 500,000 merchant partners globally.

"Adyen’s financial technology platform combined with Klarna’s various consumer offerings will raise the standard of payments and consumer experiences worldwide,” Pieter van der Does, the Co-Founder and Co-CEO of Adyen, commented.

Klarna's payment options include interest-free "Pay Now and Pay Later" installment plans. By leveraging Adyen's acquiring capabilities, the partnership aims to raise the standard for payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term and consumer experiences worldwide. The company earned $1.85 billion from its operations in 2022, which translated to an increase of 21% compared to the previous year.

Adyen is a Dutch publicly-listed payments firm offering financial technology to companies worldwide, including big names like Microsoft, Uber, and Meta. Despite a fivefold revenue drop in H1 2023, the company was able to report a higher net income of $283.17 million.

“Adyen aligns seamlessly with Klarna’s role as the preferred payments network and shopping assistant for consumers and retailers worldwide,” Sebastian Siemiatkowski, the CEO of Klarna, added.

Adyen’s UK Banking License and Valuation Drop

In September, Adyen obtained a banking license in the United Kingdom. This strategic move marks Adyen's foray into the banking industry and enables the firm to offer financial support to small and medium-sized enterprises in the UK. Additionally, the license ensures that Adyen can maintain its operations in the UK under the Temporary Permissions Regime following Brexit.

Adyen is already established as an acquiring bank in the Netherlands, holding a banking license that allows the company to process merchant payments directly. This capability streamlines the settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term process, which typically requires several days when involving banking partners.

In a related financial update, Adyen experienced a downturn in its stock value following the release of financial results that fell short of investor expectations. As reported by Finance Magnates in August, this downturn led to a substantial decrease in the company's valuation, with a loss of $20 billion in a single day. Continuing this trend, Adyen's share prices have further declined, reaching levels last seen during the pandemic lows of April 2020.