Klarna partners with GoCardless to accelerate expansion in the US

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Klarna will use GoCardless for its popular Pay in 4 offering and its financing solution, creating a more convenient shopping experience for customers.

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Business Wire, Inc.Business Wire, Inc.
Retrieved on: 
Tuesday, December 14, 2021
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Professional Services, Data Management, Technology, Finance, Software, Banking, CTO, The Motley Fool, Pain, Gen, Samsung, Growth, IKEA, Nike, ACH, Generation Z, Takeuchi, Adoption, ASOS, Risk, CEO, Buy Now, Die Later, H&M, Expedia Group, All rights reserved, Appetite, AliExpress, DocuSign, Technology, Bank, Klarna, Professional Services, Data Management, Technology, Finance, Software, Banking, GoCardless, Klarna, GOCARDLESS, KLARNA
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NEW YORK, NEW YORK, US, FRANCE, GERMANY, SAN FRANCISCO, UK, AUSTRALIA, UNITED STATES, NEW YORK CITY
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GOCARDLESS, KLARNA
Summary
Key Points: 
  • Klarna will use GoCardless for its popular Pay in 4 offering and its financing solution, creating a more convenient shopping experience for customers.
  • Additionally, Klarna users who chose to pay via Klarna financing can give permission to pull funds automatically from their bank account when a payment is due.
  • Were excited to work with GoCardless and leverage its expertise in account-to-account payments as we expand in the US.
  • Hiroki Takeuchi, co-founder and CEO of GoCardless, adds: Weve been proud to work with Klarna in the UK since 2018.


Please replace the release with the following corrected version due to an updated logo and multiple revisions in the second paragraph.

The updated release reads:

KLARNA PARTNERS WITH GOCARDLESS TO ACCELERATE EXPANSION IN THE US

Klarna, a leading global retail bank, payments and shopping service, today announced that it has chosen GoCardless, a global leader in account-to-account payments, to offer bank debit payments to its over 21 million US customers.

Klarna will use GoCardless for its popular Pay in 4 offering and its financing solution, creating a more convenient shopping experience for consumers. Klarna users can pay in four interest-free installments when choosing Pay in 4, as well as across monthly payments with Klarna financing. These alternatives for purchases reduce the risk of failed or late payments and remove the hassle of entering and updating card details.

This new way of paying taps into the growing trend of US shoppers moving away from traditional forms of credit, with high interest rates and revolving debt, towards smarter and more sustainable payment methods. Younger consumers in particular have lower adoption rates for credit cards: In the US, Gen Z consumers have an average of two credit cards compared to the national average of three, according to Motley Fool.

Koen Köppen, CTO at Klarna, says: “The US is a key market for Klarna, and we continue to see strong growth, doubling our customer base to over 21 million from last year. To continue along that trajectory we need partners that not only provide our consumers and retailers more choice and control but also offer us cutting-edge technology and best-in-class service. We’re excited to work with GoCardless and leverage its expertise in account-to-account payments as we expand in the US.”

Hiroki Takeuchi, co-founder and CEO of GoCardless, adds: “We’ve been proud to work with Klarna in the UK since 2018. From the start, it was clear one of our value-adds was our global bank debit network, enabling Klarna to access multiple markets through a single platform. After years of phenomenal growth across the world, we’re thrilled to be Klarna’s bank debit provider as they make further inroads in the US.”

Takeuchi added, “With card fees rising and the appetite for debt dropping, we predict rapid growth for alternative payment methods. Not only does this include making purchases with Buy Now, Pay Later, it also extends to how shoppers prefer to pay off their balances -- namely, through their bank account, whether that’s powered by ACH debit or newer technology like open banking. Over the next few years we expect account-to-account payments to challenge the dominance of cards as they tap into changing consumer demand and provide merchants significant benefits in terms of cost, conversion and churn.”

This announcement builds on GoCardless’ presence in the US, a market it entered in 2019. Since then, GoCardless has grown its customer base, which includes DocuSign and 8x8, and opened a second office in New York City to act as the hub for strengthening and scaling the GoCardless payment infrastructure in the US. The US will continue to be a focus area for GoCardless, with the company doubling its headcount in 2021 as roles were filled across both the company’s east coast and San Francisco offices. By the end of 2022, GoCardless plans to grow the US team by another 125%.

About GoCardless

GoCardless is a global leader in account-to-account payments, making it easy to collect both recurring and one-off payments directly from customers' bank accounts. The GoCardless global payments network and technology platform take the pain out of getting paid for 65,000 businesses worldwide, from multinational corporations to small businesses. Each year GoCardless processes US$20 billion of payments across more than 30 countries. GoCardless is headquartered in the UK, with additional offices in Australia, France, Germany and the United States. For more information, please visit www.gocardless.com and follow us on Twitter @GoCardless.

© 2021 GoCardless Ltd. All Rights Reserved. GoCardless is a registered trademark of GoCardless Ltd in multiple countries. Third party trademarks mentioned above are owned by their respective companies. Unless explicitly identified as such, nothing in this press release should be construed to the contrary, or as an approval, endorsement or sponsorship by any third parties of GoCardless Ltd. or any aspect of this press release.

About Klarna

We make shopping smooth. With Klarna consumers can buy now and pay later, so they can get what they love today. Klarna’s offering to consumers and retailers include payments, social shopping, and personal finances. Over 250,000 retail partners, including H&M, IKEA, Expedia Group, Samsung, ASOS, Peloton, Abercrombie & Fitch, Nike and AliExpress have enabled Klarna’s innovative shopping experience online and in-store. Klarna is one of the most highly valued private fintechs globally with a valuation of $45.6 billion. Klarna was founded in 2005, has over 5,000 employees and is active in 19 countries. For more information, visit klarna.com.

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Copyright Business Wire 2021