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After Apple, Klarna adds Google Pay to its suite of big tech partners

Klarna is partnering with Google Pay to offer BNPL options to US users starting in 2025. The integration lets shoppers split purchases or choose longer-term financing, marking Klarna’s latest move to become a mainstream payment option across major digital platforms.

  • Marina Mouka
  • November 19, 2024
  • 2 minutes

Klarna has announced a new partnership with Google Pay, allowing US customers to use buy-now, pay-later (BNPL) options directly through the payment platform. The integration follows Klarna’s recent collaboration with Apple Pay as the company continues to expand its presence in mainstream payment systems.

Starting in 2025, US Google Pay users will be able to split purchases over $35 (£27) into four payments or choose longer-term financing, Klarna confirmed. David Sykes, Klarna’s Chief Commercial Officer, said the company is moving toward becoming a standard payment option across major platforms.

“What we’re actively doing at the moment is shifting from the alternative payment world to the default-on or the mainstream payment world,” Sykes told Bloomberg News.

Klarna has shifted its focus to partnerships with payment processors rather than individual retailers, reflecting its aim to broaden its market presence. Google Pay, with 25 million US users, launched its BNPL services earlier this year, partnering with providers such as Affirm and Zip.

Drew Olson, Senior Director at Google Pay, said the collaboration gives shoppers more flexibility while supporting merchants. “By teaming up with providers like Klarna, we are able to give Google Pay users more payment options while helping merchants drive growth,” Olson said.

This deal builds on Klarna’s recent agreements with Apple Pay, Adyen, Xero, and Worldpay, as it strengthens its position in digital wallets. Digital wallets are projected to account for over half of US online spending by 2027, according to Worldpay, with BNPL options making up about 6%.

The US remains Klarna’s fastest-growing market. The company currently serves 85 million customers globally and works with 600,000 retail partners, aiming to expand its availability at checkouts worldwide.