Klarna shakes up digital payments: now available on Apple Pay in the US and UK.
Klarna, the leading Buy Now, Pay Later (BNPL) provider, has announced its integration with Apple Pay, set to transform the landscape of digital payments. This groundbreaking partnership brings Klarna’s flexible payment options directly to millions of Apple users in the United States and United Kingdom.
A New Era of Convenience
Starting October 17, 2024, eligible Apple Pay users can now access Klarna’s popular payment solutions when shopping online or through apps on their iPhones and iPads. This integration is available on devices running iOS 18 and iPadOS 18 or later.
Sebastian Siemiatkowski, Klarna’s co-founder and CEO, hailed the move as “a big step toward our mission to offer consumers Klarna at every checkout.” The excitement is palpable, as this collaboration brings together two giants in the world of digital finance and technology.
What’s on Offer?
Klarna’s integration with Apple Pay introduces a range of payment options:
- Pay later in three or four installments.
- Financing for high-value purchases
These choices give shoppers more flexibility in managing their expenses without the burden of traditional credit card interest rates.
How It Works
Using Klarna through Apple Pay is straightforward. When checking out, users simply need to:
- Select “Other Cards & Pay Later Options” in Apple Pay.
- Choose from the available Klarna products.
- Complete their purchase with the ease and security of Apple Pay.
Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet, emphasized the benefits: “Users have the option to pay for purchases over time, and they get to enjoy the seamless and secure experience of Apple Pay that they already know and love.”
Privacy and Security First
In line with Apple’s commitment to user privacy, the integration maintains all the security features of Apple Pay. This means Apple doesn’t keep records of users’ transaction history, ensuring peace of mind for privacy-conscious shoppers.
Global Expansion on the Horizon
While currently available in the US and UK, Klarna has ambitious plans for global expansion. Canada is next on the list, with a launch expected in the coming months. This rollout strategy aligns with Klarna’s goal to become a ubiquitous payment option worldwide.
Klarna’s Growing Influence
The partnership with Apple Pay is just the latest in a series of strategic moves by Klarna.
- In August, Klarna reported being the “partner of choice” for 25% of the top 100 US merchants.
- A recent collaboration with Rite Aid brings BNPL options to their drugstores.
- A partnership with Adyen extends Klarna’s installment payments to physical stores across North America, Europe, and Australia.
- Small businesses can now offer BNPL through Klarna’s integration with Xero’s platform.
The Bigger Picture: BNPL Regulation
As Klarna expands its reach, the BNPL industry faces new regulatory challenges. The UK’s HM Treasury recently announced that BNPL services will fall under the Financial Conduct Authority’s (FCA) regulation starting in 2026. This move aims to ensure responsible lending practices and protect consumers.
Under the new rules, BNPL companies like Klarna and its competitor Clearpay will need to conduct affordability checks, ensuring users can manage their repayments. This regulatory shift could reshape the BNPL landscape in the coming years.
What’s Next for Klarna?
Klarna’s integration with Apple Pay is just the beginning. The company has already launched “Apple from Klarna,” a dedicated storefront in the Klarna app and website. Here, US customers can purchase Apple products using Klarna’s flexible payment options.
As Klarna continues to innovate and expand, it’s clear that the company is positioning itself at the forefront of the digital payments revolution. With its user-friendly approach and strategic partnerships, Klarna is making it easier than ever for consumers to manage their purchases on their own terms.
The integration with Apple Pay marks a significant milestone in Klarna’s journey. As more consumers embrace flexible payment options and digital wallets, we can expect to see further innovations in this space. For now, millions of Apple users in the US and UK can enjoy a new level of financial flexibility, right at their fingertips.
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