Stripe and Klarna partner as ‘buy now, pay later’ competition heats up

Stripe, a company whose tools allow merchants to accept payments, is partnering with ‘buy now, pay later’ (BNPL) firm Klarna in an effort to enhance offerings for client merchants.

Why should we care?
Stripe’s partnership with Klarna is the latest move in a string of recent deals in the BNPL space: In August, Square announced plans to acquire Australian BNPL firm Afterpay for $29B, and PayPal bought Japan-based BNPL provider Paidy for $2.7B in September. The Stripe-Klarna tie-up brings together two of the world’s most valuable fintech companies, with Stripe valued at $95B and Klarna valued at $46B. Other large industry players, including Visa, are looking to enhance their BNPL offerings. The news comes as the BNPL market expanded during the pandemic, and as regulators are looking more closely at the sector. “Over the past years, Klarna and Stripe redefined the e-commerce experience for millions of consumers and global retailers. Together with Stripe, we will be a true growth partner for retailers of all sizes, allowing them to maximize their entrepreneurial success through our joint services,” said Koen Köppen, Chief Technology Officer at Klarna, in a statement. “By offering convenience, flexibility, and control to even more shoppers, we create a win-win situation for both retailers and consumers alike.