In a year full of major moves, Klarna has signed a deal to bring its buy now, pay later products to Clover’s point-of-sale systems.
Clover is one of the leading POS providers in the U.S., and this partnership will bring Klarna to over 100 of Clover’s merchants, with a broader rollout slated for early next year. There’s also potential for the two fintechs to expand their offerings to e-commerce merchants in the future.
This deal marks another step forward in Klarna’s mission to bring BNPL to Main Street,. While BNPL products have traditionally been associated with e-commerce platforms, companies like Affirm and Klarna are focused on placing their offerings front-and-center at more brick-and-mortar checkouts.
The Depth of Features
The deal with Clover, which is owned by Fiserv, is another step toward U.S. ubiquity for Klarna. Small businesses have increasingly turned to POS providers like Clover to navigate the complexities of the payments landscape.
However, providing a single solution that can serve all types of merchants—from restaurants to retailers to service providers—is a daunting task. Clover was recently named the leading small business POS solution in a scorecard by Javelin Strategy and Research, because of the depth of features offered on its platform. The addition of BNPL should only further enhance the platform’s appeal.
While the deal appears to be a win-win for Klarna and Clover, it hasn’t all been positive news for the BNPL firm lately. Klarna had announced plans to go public on the New York Stock Exchange in what was expected to be one of the most anticipated initial public offering of the year. However, the company has since put its IPO plans on hold following turbulence in the stock market and the poor recent performance of Affirm’s stock.
Shifting the BNPL Paradigm
Klarna has also been working to expand its footprint in the U.S. The Swedish-based company was initially more dominant overseas, while Affirm had gained more traction stateside. That paradigm has started to shift following several significant deals by Klarna, most notably its recent agreement with Walmart.
With 255 million weekly customers, Walmart is the largest U.S. retailer. Under the new deal, Klarna will become the exclusive BNPL provider for Walmart’s OnePay platform—a role previously held by Affirm.
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