The partnership will allow Google Pay users to select Klarna’s interest-free payment options at checkout, offering greater flexibility for purchases. Klarna's CEO noted that the collaboration with Google will simplify how millions of shoppers manage payments. He emphasised that Klarna aims to be a universal payment solution available at any checkout.
Representatives from Google Pay highlighted the growing demand for flexible payment methods, pointing out that partnerships like this enhance Google Pay's offerings for consumers and merchants alike.
The Klarna integration will give Google Pay users the ability to divide purchases of USD 35 or more into interest-free instalments. For higher-value purchases, financing options with competitive interest rates will also be available. Users will manage their transactions through the Klarna app, which includes features such as delivery tracking, returns processing, and payment management, all in one platform.
At the time of writing, Klarna has over 85 million active users and partnerships with more than 600,000 merchants globally. The company's recent collaborations with payment service providers and digital wallets aim to expand its network further, offering alternatives to traditional credit solutions.
In November 2024, Klarna announced that it filed initial public offering (IPO) documents in the US. Coming after months of speculation, Klarna has submitted a draft registration statement to the US Securities and Exchange Commission (SEC) for its initial public offering in the US.
Potentially valuing Klarna between USD 15 billion to USD 20 billion, the initial public offering could occur after the SEC review and the timing could be influenced by market circumstances. Also, Klarna underlined the price range and number of shares to be provided in the IPO are yet to be determined. This would indicate a substantial increase from the USD 6.7 billion valuation Klarna accumulated as part of its last fundraising round in 2022.
For more information about Klarna, please check out their detailed profile in our dedicated, industry-specific Company Database.
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