Klarna, the Swedish buy-now-pay-later (BNPL) firm, is making significant strides to enhance its service by partnering with Dutch payments fintech Adyen. This collaboration will enable Klarna's BNPL service to be available at over 450,000 Adyen payment terminals in physical retail locations across Europe, North America, and Australia. The move marks a strategic shift for Klarna, which has been predominantly associated with online shopping, to target in-store consumers and increase its market presence. Klarna's chief commercial officer, David Sykes, emphasized the goal of making Klarna a checkout option anywhere, enhancing consumer flexibility at the point of sale. This partnership follows Klarna's recent efforts to diversify its offerings, including launching a checking account-like product and cashback rewards. As Klarna gears up for a potential IPO in 2024, regulatory scrutiny around BNPL services continues to grow, with new regulations expected from the U.K. government aimed at consumer protection in this rapidly evolving sector.
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