Klarna has revealed a partnership with Dutch payments fintech Adyen to launch its buy now, pay later (BNPL) service in brick-and-mortar retail stores.
The partnership will enable Klarna’s payment options at over 450,000 Adyen payment terminals used by the fintech’s merchant partners, with the initial rollout taking place in Europe, North America and Australia, and plans for broader expansion in the future.
The terminals will feature Klarna’s Dynamic QR technology, allowing customers to scan a QR code on the device and complete their transaction by selecting a BNPL option on their mobile phone.
David Sykes, Chief Commercial Officer at Klarna, commented: “We want consumers to be able to pay with Klarna at any checkout, anywhere. Our strong partnership with Adyen gives a massive boost to our ambition to bring flexible payments to the high street in a new way.”
This move builds on a previous agreement between Klarna and Adyen focused on e-commerce payments. In that earlier partnership, Adyen became an acquiring bank for Klarna in Europe, North America and Asia.
The rise of BNPL services has been closely tied to online shopping, where it currently accounts for around 5% of the global e-commerce market, according to Klarna.
As consumers increasingly seek flexible payment options, the payment option has become a popular alternative to traditional credit, allowing customers to spread out payments for purchases.
However, governments globally have raised the need for stronger regulation of BNPL services.
In July, UK City Minister Tulip Siddiq pointed to the mostly unregulated BNPL market in the UK as a priority in her role, emphasising the government’s intention to collaborate with key stakeholders like Klarna and Afterpay.
New Zealand and Australia are emerging as leaders in regulating BNPL services. In August, Iana Vidal, Director of Public Policy and Regulatory Affairs at Clearpay, a major UK BNPL provider, told Payment Expert that the UK should avoid relying on outdated rules and could learn from the upcoming regulations being introduced in those two countries.
