Starting in 2025, Google Pay users across the US will have the option to use Klarna for payments during checkout.
The agreement will incorporate Klarna’s interest-free instalments as a payment option on purchases over $35 into Google Pay. These payments can then be managed inside Klarna’s app, allowing users to track deliveries, handle returns and manage repayments.
Sebastian Siemiatkowski, CEO of Klarna, commented: “We’re thrilled to bring our fair, flexible, and interest-free payment options directly to Google Pay users. This announcement moves us closer to our vision of having Klarna available at every checkout, everywhere, for everything, all the time.
“Together with Google, we’re making it easier than ever for millions of shoppers to choose Klarna, empowering consumers to shop confidently with a smarter, more transparent way to pay right at their fingertips.”
Google Pay believes this partnership will make payment options more accessible, allowing consumers to shop and pay with Klarna directly from their devices. Drew Olson, Senior Director of Google Pay, added that this deal looks to give users more choice.
Olson remarked: “People shop on Google more than a billion times per day, and consumers are increasingly looking for more choice and flexibility when it comes to their payment options.
“By teaming up with pay over time providers like Klarna, we are able to give Google Pay users more payment options when checking out, while providing merchants with another tool to drive growth.”
Klarna’s buy now, pay later (BNPL) offering can be found in a range of places, with the firm pushing for partnerships with some of the largest companies in the space, such as a recent agreement with Apple Pay.
The fintech has primarily targeted the US and UK markets, although both regions come with distinct regulatory challenges. In the US, the BNPL sector faces a particularly volatile environment, with ongoing disputes over regulations.
The Consumer Finance Protection Bureau (CFPB) has introduced rules that treat BNPL providers like credit card companies. Klarna and similar firms have pushed back against these proposals, advocating for a different regulatory approach.
Despite the regulatory challenges, Klarna recently opted to bypass the London Stock Exchange in favour of pursuing an Initial Public Offering (IPO) in the US. Currently, the Swedish fintech company is awaiting the review of its draft registration statement.
