Swedish FinTech Klarna has launched a payments partnership with video communications platform Zoom.
The collaboration, announced by the buy now, pay later (BNPL) firm Thursday (Oct. 31), is designed to give consumers greater access to Zoom’s premium services.
“We want Klarna at every checkout, available everywhere, for everything, all the time,” David Sykes, the company’s chief commercial officer, said in a news release.
“By offering flexible payment options with Zoom Workplace, we’re bringing that vision closer, empowering users to access premium collaboration tools without upfront costs and expanding Klarna’s reach across multiple markets.”
According to the release, customers in 16 countries can now use Klarna to manage their Zoom Workplace subscription, with Pay Now available in all countries and Pay Later available in the U.S., Sweden and Germany, expanding the reach of both companies.
“With the global subscription market projected to reach $1.5 trillion by 2025, Klarna’s flexible payment options are vital for businesses adopting subscription models, making it a key partner for companies looking to scale,” the release said.
The partnership follows similar Klarna collaborations with high-profile brands, including recent ones with Airbnb and Uber.
In other BNPL news, recent research from PYMNTS Intelligence shows that the payment method continues to enjoy traction with consumers, with 16% of Americans abandoning traditional payment options in favor of BNPL solutions.
It’s a trend that’s especially strong with millennials, with nearly 40% of that age group saying they used BNPL in the last year. This jump in popularity is underscored by a 28% year-over-year uptick in gross merchandise volume for BNPL purchases through a single service, a sign of its effectiveness in fueling sales.
“The financial impact is significant,” PYMNTS wrote. “On Black Friday, shoppers using BNPL spent an average of $150 more than those using conventional payment methods, showcasing the heightened purchasing power this payment option enables. Millennials exhibit a strong preference for flexible payment methods, making it essential for merchants to incorporate BNPL to meet their demands.”
Meanwhile, Klarna’s implied valuation climbed to around $14.6 billion earlier this week after Chrysalis Investments increased the value of its stake in the company from roughly $130.1 million to about $156.5 million.
The move comes as Klarna prepares for an initial public offering (IPO). According to a report by Bloomberg News, Chrysalis said the next potential window for the company to go public seems to be the first half of next year.
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