Klarna has clinched two new partnerships in a major expansion of the Swedish fintech’s international reach, though the week has not all been good news.
Announced one day apart, the company has signed deals with e-commerce platform eBay and mobile payments leader Apple Pay – with the agreements focusing on European markets and Canada respectively.
The eBay agreement will see the platform integrate Klarna’s BNPL option in the UK, Austria, France, Italy, the Netherlands and Spain, expanding on an existing partnership in Germany.
The duo looks to capitalise on the growing resale market as well as the popularity of alternative payment methods (APMs) like BNPL among Gen Z and millennial consumers.
“eBay is one of the biggest and best marketplaces in the world and we’re thrilled to partner with them,” said David Sykes, Chief Commercial Officer at Klarna.
“With more flexible payment options and the new resell feature, we’re making it easier than ever for millions of people to buy and sell everything – from collectable sneakers to strollers and designer bags – on eBay.”
Meanwhile, the deal with Apple Pay will make Klarna’s BNPL products available to the payments providers users via iPhone and iPad in Canada. It marks the debut of Klarna’s flagship BNPL offering in Canada, following launches in the US and UK in October.
This is also indicative of Klarna’s increasing focus on North America. Despite its apprehension towards the Consumer Finance Protection Bureau (CFPB) rules around BNPL introduced earlier this year, Klarna is keeping the lucrative US market high on its agenda.
Klarna’s US ambitions have been no secret, with the company having been rumoured to be chasing a US listing throughout the year. This came to fruition last month when Klarna completed its listing on the New York Stock Exchange (NYSE).
Launch in Canada will add even more customers to the firm’s growing user base. Across its full breadth of markets on both sides of the Atlantic the firm has amassed a total customer base so far of 85 million.
“I am delighted that we are extending Klarna on Apple Pay to Canada,” said Sebastian Siemiatkowski, Co-founder and CEO of Klarna.
“After the great reception we received from consumers in the US and UK last month, consumers in Canada will now have easier access to our fair, flexible and interest-free payments options when checking out on Apple Pay online and in apps.
“This is another big step toward our mission to offer consumers Klarna at every checkout.”
It has not been all good news for the company this week, however. The firm has been hit with an SEK 500 million fine in its home market for violating AML regulations, issued by the country’s financial regulator.
