Klarna partners with Cathay Pacific

Tuesday 28 November 2023 15:02 CET | News

AI-powered payments network and shopping assistant Klarna has announced its partnership with airline Cathay Pacific to improve travel payments in Europe. 

Through this collaboration, Klarna intends to offer Cathay Pacific reasonable and flexible payments to travellers in six countries across Europe, including the UK, Spain, France, Italy, the Netherlands, and Germany. The agreement comes as an addition to the latest series of travel collaborations for Klarna as the company plans to further expand into the travel industry.

AI-powered payments network and shopping assistant Klarna has announced its partnership with airline Cathay Pacific to improve travel payments in Europe.

Klarna – Cathay Pacific partnership objective

Klarna’s credit products intend to provide users with access to credit, clear repayment plans, and customer-protection features, including freezing access to its services when a payment is missed. By working together, Cathay Pacific customers over the age of 18 can select Klarna as a payment option at checkout. Travellers in the UK, Spain, France, Italy, and the Netherlands can pay for flights in three, interest-free instalments using Klarna’s Pay in 3 service. For Germany, the company enables customers to divide the cost of a flight over 6 to 24 months, interest-bearing.

According to Cathay Pacific’s officials, the airline partnered with Klarna to provide its customers with fast, flexible, and convenient online payment options to minimise the difficulties of travelling to the Asia Pacific region. Representatives from Klarna stated their enthusiasm over the collaboration, with the company intending to support Cathay Pacific in its objective of providing BNPL solutions to its customers. In addition to its partnership with Cathay Pacific, Klarna also teamed up with Airbnb in May 2023 to offer consumers in seven countries the ability to divide the cost of their trips. The company plans to introduce its services to additional countries for Airbnb guests.

Klarna’s recent developments and collaborations

Headquartered in Sweden, payment group Klarna entered multiple partnerships and launched several products in the last months, covering different geographies around the world. Recently, Klarna was authorised by the FCA to offer credit services and regulated payments in the UK. The company established an additional UK-based entity entitled Klarna Financial Services UK, which was projected to provide all customer-facing services and solutions in the region. The authorisation applied to Klarna’s regulated credit and payment products, including Klarna Term Loan and Klarna Card, with them being regulated credit tools. Also, One-time Card, Instore Card, and Open Banking-based payment services were also included as regulated payment solutions.

During the same period, Form3, a UK-based cloud payment technology provider, announced that it intends to assist Klarna in extending its European payment capabilities with SEPA connectivity. The agreement enabled Form3 to offer Klarna direct technical access to STEP2 and RT1 via its cloud-based, single API account-to-account (A2A) platform, allowing the company to process payments directly instead of depending on third-party banks. The company also received additional payment use cases by integrating SEPA Instant as a payment flow.

At the end of October 2023, Walmart Canada collaborated with Klarna to introduce flexible BNPL payment methods for customers in the region who shop online. Through this partnership, clients and users from Canada can benefit from interest-free BNPL offerings powered by Klarna. The service was enabled at checkout on and through the Walmart Canada and Klarna mobile applications. 

For more information about Klarna, please check out their detailed profile in our dedicated, industry-specific Company Database.

More: Link

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: partnership, BNPL, payment methods, payments , online payments, travel payments
Categories: Payments & Commerce
Companies: Cathay Pacific, Klarna
Countries: Europe
This article is part of category

Payments & Commerce

Cathay Pacific



Discover all the Company news on Cathay Pacific and other articles related to Cathay Pacific in The Paypers News, Reports, and insights on the payments and fintech industry: