Klarna, the Swedish buy-now, pay-later (BNPL) giant, has formed a significant partnership with fintech company Stripe to enhance its market presence and expand its merchant base in preparation for its anticipated U.S. initial public offering (IPO). This collaboration will make Klarna’s BNPL service accessible to merchants using Stripe’s payment solutions across 26 countries, improving functionality for these merchants with features like A/B testing and real-time conversion metrics. The partnership comes after Klarna's strategic move to offload its online checkout business last year. Klarna is aiming to regain profitability by summer 2023, having seen its valuation fluctuate dramatically over the years, peaking at $46 billion during the fintech boom. The new deal is expected to drive revenue growth for both companies, as BNPL services have shown to increase transaction volumes and average order values. Analysts suggest Klarna could be valued at $20 billion in its upcoming IPO.
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