Klarna Expands Reach with Stripe Integration, Gearing Up for US $20 Billion IPO

Tuesday, 14/01/2025 | 14:57 GMT by Tareq Sikder
  • The BNPL service is available to merchants in 26 countries through the new partnership.
  • Klarna's valuation has varied, reaching $46 billion at its peak before falling to $6.7 billion in 2022.
IPO_Filing
Finance Magnates

Klarna has entered into a new distribution partnership with Stripe to expand its reach ahead of its planned IPO in the US. The collaboration will make Klarna’s buy now, pay later (BNPL) service available to merchants using Stripe's payment tools in 26 countries.

The deal is significant for Klarna, which is preparing for its IPO in the United States. The company confidentially filed for the listing in November and could be valued at up to $20 billion. Klarna earns revenue through fees from retailers on each transaction, while Stripe will receive a share of the transaction fees, as reported by CNBC.

Klarna’s Valuation Fluctuates Ahead of IPO Plans

This follows a previous partnership between the two companies in 2021, where Klarna’s BNPL service was offered to Stripe’s U.S. merchants. BNPL plans allow consumers to spread the cost of purchases through installments, a popular option for many shoppers.

Klarna has reported growth, adding 100,000 new merchants in 2024, with an increasing growth rate since the Stripe integration in October. Klarna's valuation has fluctuated, reaching a peak of $46 billion in 2021 before falling to $6.7 billion in 2022.

Stripe Sees Revenue Growth with BNPL Service

The deal also benefits Stripe, potentially increasing its revenue. Stripe’s study found that businesses offering BNPL saw up to 14% more revenue due to higher conversion rates and larger order values. BNPL volume grew 172% on Stripe last year.

Stripe, which is also expected to IPO soon, saw its valuation drop from $95 billion in 2021 to $50 billion in 2023, with a reported rebound to $70 billion in a secondary share sale.

Klarna Partners with Adobe Commerce for BNPL Services

Earlier, Klarna announced a partnership with Adobe Commerce, enabling merchants to offer its BNPL services and other flexible payment options, as reported by Finance Magnates.

This collaboration allows Klarna to expand its payment flexibility to more consumers. By integrating Klarna's solutions with Adobe Commerce, merchants can provide additional payment choices.

The partnership aims to leverage the strengths of both companies to benefit customers. It is expected to help merchants by offering more payment options and potentially boosting sales through Klarna’s BNPL services.

Klarna has entered into a new distribution partnership with Stripe to expand its reach ahead of its planned IPO in the US. The collaboration will make Klarna’s buy now, pay later (BNPL) service available to merchants using Stripe's payment tools in 26 countries.

The deal is significant for Klarna, which is preparing for its IPO in the United States. The company confidentially filed for the listing in November and could be valued at up to $20 billion. Klarna earns revenue through fees from retailers on each transaction, while Stripe will receive a share of the transaction fees, as reported by CNBC.

Klarna’s Valuation Fluctuates Ahead of IPO Plans

This follows a previous partnership between the two companies in 2021, where Klarna’s BNPL service was offered to Stripe’s U.S. merchants. BNPL plans allow consumers to spread the cost of purchases through installments, a popular option for many shoppers.

Klarna has reported growth, adding 100,000 new merchants in 2024, with an increasing growth rate since the Stripe integration in October. Klarna's valuation has fluctuated, reaching a peak of $46 billion in 2021 before falling to $6.7 billion in 2022.

Stripe Sees Revenue Growth with BNPL Service

The deal also benefits Stripe, potentially increasing its revenue. Stripe’s study found that businesses offering BNPL saw up to 14% more revenue due to higher conversion rates and larger order values. BNPL volume grew 172% on Stripe last year.

Stripe, which is also expected to IPO soon, saw its valuation drop from $95 billion in 2021 to $50 billion in 2023, with a reported rebound to $70 billion in a secondary share sale.

Klarna Partners with Adobe Commerce for BNPL Services

Earlier, Klarna announced a partnership with Adobe Commerce, enabling merchants to offer its BNPL services and other flexible payment options, as reported by Finance Magnates.

This collaboration allows Klarna to expand its payment flexibility to more consumers. By integrating Klarna's solutions with Adobe Commerce, merchants can provide additional payment choices.

The partnership aims to leverage the strengths of both companies to benefit customers. It is expected to help merchants by offering more payment options and potentially boosting sales through Klarna’s BNPL services.

About the Author: Tareq Sikder
Tareq Sikder
  • 1254 Articles
  • 18 Followers
About the Author: Tareq Sikder
A Forex technical analyst and writer who has been engaged in financial writing for 12 years.
  • 1254 Articles
  • 18 Followers

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