Under the agreement, Klarna, which describes itself as an everyday finance network, makes its full suite of payment methods available directly in the invoicing and payment flows of FreshBooks, a small business management software provider serving service-based solopreneurs and small teams. Merchants using FreshBooks don't need any additional setup to activate the option, and Stripe powers the integration.
The service is available to FreshBooks users in the US and Canada, who can now present Klarna’s payment methods to their own customers at checkout.
How the integration works for service providers
The partnership targets businesses that bill customers through invoices. FreshBooks users can offer three payment options: pay in full, four interest-free instalments, or financing that lets customers pay over time.
The companies illustrated the range with examples from the trades. A plumber invoicing for a routine service call could accept payment in full, while a mechanic billing for a mid-size repair could let a customer split the cost into four interest-free instalments. For larger jobs, such as a renovation, a contractor could offer financing.
Because the payment methods sit inside FreshBooks’ existing invoicing and payment flows, merchants can process and reconcile payments within their business software rather than handling them separately.
Cash flow and payment risk
Both companies framed the integration around the cash flow pressures small businesses face. Lisa Robinson, Head of Partner Success, US East Coast and Canada at Klarna, said that getting paid reliably and on time is what keeps small businesses and entrepreneurs in the US and Canada running, adding that customers gain payment flexibility while FreshBooks users retain predictable cash flow.
Jeffrey Imm, GM of Financial Services and Payroll at FreshBooks, said that offering BNPL as a payment choice has been shown to substantially increase the speed of small business cash flow and revenues, while removing the risk of businesses not being paid for their products or services. The official also noted that processing and reconciling payments within business software benefits both merchants and their customers.
Implications for embedded BNPL
The partnership places Klarna’s BNPL and financing options inside software used by small, service-based businesses, extending its reach to merchants who invoice customers directly. For FreshBooks, the integration adds a payment option for users who want to offer BNPL without separate onboarding. Because Stripe powers the integration, merchants do not need to configure anything further.
Under this model, the end customer chooses when and how to pay. According to the companies, the merchant still retains confidence in when payment will be received.
