Klarna Partners With JP Morgan to Expand Buy Now, Pay Later Services

Klarna has announced a strategic partnership with JP Morgan Payments that will integrate its Buy Now, Pay Later (BNPL) solutions into JP Morgan's merchant services platform, marking a significant expansion of Klarna's merchant reach.

The agreement will enable businesses using JP Morgan Payments' Commerce Solutions Platform to offer Klarna's payment options, including interest-free BNPL and flexible financing. JP Morgan Payments, which processes more than USD 2 trillion in payment transactions annually, is currently the world's largest merchant acquirer.

David Sykes, Chief Commercial Officer at Klarna, said: "This is a major milestone for Klarna. By collaborating with J.P. Morgan Payments, we're bringing our payment solutions to even more businesses and fast-tracking our ambition to make Klarna payments available everywhere, for everything. Together with J.P. Morgan Payments, we're giving shoppers the flexibility they want while helping businesses grow faster."

As part of the agreement, Klarna will join the JP Morgan Payments Partner Network, which combines the bank's payment solutions with third-party services to help clients develop and optimise their payment strategies.

The partnership comes as BNPL services continue to gain traction globally, with traditional financial institutions increasingly embracing these alternative payment methods. Klarna, which describes itself as an AI-powered global payments network and shopping assistant, has been expanding its merchant partnerships to compete in the growing BNPL sector.

The integration is expected to launch later this year, though specific timing details were not disclosed. Neither company revealed the financial terms of the agreement.