Wirecard strikes again with Klarna payments partnership
Wirecard has landed its latest payments partnership with Klarna, the Swedish buy now, pay later fintech.
After announcing similar deals with Southeast Asian ride-sharing firm Grab and Austria’s second-largest lender Raiffeisen Bank over the past few weeks, the German fintech will add $5.5 billion-valued Klarna to its payments partner list.
All three of Klarna’s shopping methods – ‘Pay Now’, ‘Pay Later’ and ‘Klarna Financing’ – will be embedded into Wirecard’s merchant checkouts through a “a more streamlined and efficient integration” with the ‘Wirecard Financial Commerce’ platform.
The German fintech says the new partnership will help “boost average order value and conversions”, and “hence fuel growth for merchants”.
Klarna, which works with more than 200,000 merchants including Nike, ASOS, and IKEA, believes it can increase an online store’s orders by 30% on average, and increase the average spend of consumers by 34%.
Wirecard’s merchants will be able to use Klarna’s payment methods in nine countries: Sweden, Norway, Finland, Denmark, Switzerland, Germany, Austria, Netherlands and the UK.
The two payment partners are also promising to cover the merchant and consumer risk, essentially guaranteeing the delivery of any transactions which happen on their combined platforms.
“We are proud to team up with Wirecard to combine the best of our offerings into a single solution,” says Klarna’s commercial VP Luke Griffiths.
“Our joint partnership will enhance both the merchant and end-customer experiences, while expanding our footprint to more geographies,” Griffiths adds, highlighting that the pair will be looking to extend the partnership beyond its initial nine countries to achieve “global scale”.