Silicon Valley online payments provider Stripe has struck a deal with Sweden’s Klarna, enabling Stripe merchants to accept Klarna and offer its customers installment payments, according to Swedish tech publication Breakit. The partnership would represent Stripe’s first foray into alternative payment methods.
Stripe rose to prominence in the payments world by enabling e-commerce merchants to accept credit card payments simply by adding a few lines of code to their Websites rather than go through lengthy integrations. Klarna began in Sweden by offering consumers a way to pay online by entering only a postal code or email address.
Klarna entered the U.S. market two years ago and hopes the deal with Stripe will increase adoption there. It is the second major partnership announcement of the summer for the Swedish payment provider after signing an agreement with Visa in June. For Stripe merchants, the ability to offer installment payments represents a big increase in functionality.