Stripe competes with Square and PayPal Holdings, both of which have inked sizeable deals with Klarna rivalsStripe will allow retailers to add Klarna Bank’s buy-now-pay-later service as a purchasing tool for customers, a deal that pairs up two of the world’s most valuable financial technology start-ups.
Merchants that use technology from Stripe, last valued at $95bn, will be able integrate Klarna’s payment methods on their websites, according to a joint statement from the two companies. The move will vastly increase Klarna’s potential network of sellers, while retailers with Stripe can access flexible spending options to boost their sales.
Klarna, currently worth $46bn, has done partnerships like this previously but “never at this type of scale”, chief technology officer Koen Koppen said in an interview. “In the near term, the biggest impact that this will have for Klarna is further accelerating our US growth.”
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