• Stripe, a digital payment infrastructure provider, has partnered with buy-now-pay-later (BNPL) solutions provider, Klarna, to allow merchants using Stripe to offer its customers an option to pay in installments.

• The solution is available for millions of merchants using Stripe in the US and 19 European countries, and also lets Klarna leverage off Stripe’s large merchant base. 

• Stripe is also Klarna’s preferred payments partner for consumer purchases in the US and Canada. This means Stripe processes about 90% of repayments that were pre-funded by Klarna.

<ul><li> Analyst QuickTake: This partnership - and Stripe beginning to offer BNPL solutions - comes on the heels of incumbent payment technology and infrastructure providers such as Square and PayPal expanding their presence in the BNPL space. In August 2021, Square acquired leading Australian BNPL provider, Afterpay , for USD 29 billion. In the following month, PayPal - which also offers in-house BNPL solutions - acquired leading Japanese BNPL player, Paidy for around USD 2.7 billion. </il>