Klarna signs with J.P. Morgan Payments to expand merchant services offering

World’s largest merchant acquirer to introduce Klarna’s Buy Now, Pay Later solution.

Klarna, the AI-powered global payments network and shopping assistant, has signed an agreement with J.P. Morgan Payments that will, for the first time, make Klarna’s Buy Now, Pay Later (BNPL) payment options available to businesses that rely on J.P. Morgan Payments for payment processing, according to a press release.

J.P. Morgan Payments, the world’s largest merchant acquirer, processes more than $2 trillion in payment transactions annually and is a powerful provider to help expand Klarna’s global presence, supporting consumers everywhere to pay smarter. 

The agreement will make Klarna’s payment methods, including interest-free BNPL and flexible financing options, available on the J.P. Morgan Payments’ Commerce Solutions Platform. The Klarna integration is expected to launch later this year.  

„This is a major milestone for Klarna,” said David Sykes – Chief Commercial Officer at 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.„

The agreement will provide businesses with access to one of the most popular payment networks in the world, helping them compete in an increasingly digital and customer-driven marketplace.

Klarna will also join the J.P. Morgan Payments Partner Network, which brings together J.P. Morgan Payments’ extensive suite of payment solutions and its third-party relationships to help clients build, implement, expand and optimize payments strategies based on their business needs. 

Combining J.P. Morgan Payments’ scale, stability and reach with Klarna’s innovative and trusted payment technology will help create more opportunities for businesses to grow and for consumers to shop how they want, where they want.

Simon Taylor – Head of Strategy at Sardine commented the move: „If you can’t beat them join them. Sometimes you have to know when to partner instead of compete.” (…) BNPL isn’t about payments – it’s about influencing purchase decisions BEFORE the payment moment. BNPL’s power is its flywheel effect – Consumer experience + app + merchants ROI. That influences purchase decisions driving MORE transactions for merchants.”