Klarna has partnered with J.P. Morgan Payments to introduce its "Buy Now, Pay Later" (BNPL) option to businesses that use J.P. Morgan Payments for payment processing.
Notably, this marks the first integration of Klarna's BNPL service into J.P. Morgan Payments' network. J.P. Morgan Payments is one of the world's largest merchant acquirers. According to the official press release, it processes transactions worth over $2 trillion annually.
This partnership is expected to expand Klarna's business scope, enabling its payment solutions to reach a wider range of merchants and consumers.
Integration of Klarna and J.P. Morgan Payments Platform
Under the agreement, Klarna's payment methods, including interest - free BNPL and flexible financing, will be incorporated into J.P. Morgan Payments' commercial solutions platform. This integration is slated to go live later this year.
Regarding these new developments, a Klarna representative pointed out that this partnership extends Klarna's payment services to more businesses, advancing the company's goal of achieving widespread accessibility of its services. They added that the collaboration will offer consumers greater flexibility while supporting business growth.
As part of the agreement, Klarna will also join the J.P. Morgan Payments Partner Network. This initiative aims to connect a range of J.P. Morgan Payments' payment solutions with third - party providers, helping businesses optimize and expand their payment strategies according to specific needs.
Other Developments of Klarna
One of the most notable developments for Klarna in 2025 is its potential U.S. IPO. Klarna submitted an IPO application to the U.S. Securities and Exchange Commission in November and is prepared to unveil its listing plan as early as April 2025. As of the time of writing, Klarna has not determined the listing location in the United States.
Furthermore, in an effort to cut costs and reduce its balance sheet ahead of the IPO, Klarna believes that artificial intelligence (AI) will enable it to almost halve its workforce. It has also been divesting loans to free up capital for loan growth, recently selling most of its UK portfolio to the U.S. hedge fund Elliott.
Summary: The partnership between Klarna and J.P. Morgan Payments is a significant strategic move. It will greatly expand the reach of Klarna's BNPL services, providing convenient payment options to more merchants and consumers. This collaboration also further solidifies J.P. Morgan Payments' leading position in the global payment sector. Additionally, Klarna's active preparations for a U.S. IPO, as well as its efforts to optimize its financial situation through workforce reduction and asset sales, demonstrate its readiness for future growth and development.
