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 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 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.