Marqeta and Klarna add 13 countries to partnership
The modern Marqeta card issuance platform has strengthened its partnership with Klarna to expand to several new countries with buy now, pay later (BNPL) services, virtual cards and other payment-related features, according to a press release of Tuesday, December 7.
The new countries are UK, Germany, France, Italy, Spain, Netherlands, Poland, Belgium, Austria, Ireland, Norway, Finland and Denmark.
Klarna uses Marqeta’s just-in-time finance function to control all transactions, as well as Marqeta’s technology and application programming interfaces (APIs) to work with customizable product experiences.
According to the statement, European expansion began in May 2021, when Klarna launched its UK shopping app. Then, in September, Marqeta took over single-use Klarna virtual cards in all markets.
The partnership between the companies began in 2018, when Klarna began using Marqeta’s card issuance platform in the United States to fund the virtual card on the Klarna mobile shopping app.
Marqeta then supported the launch of Klarna in Australia in 2020, as well as a recent expansion in New Zealand.
Klarna has also developed elsewhere in the world, writes PYMNTS, including in Portugal, by offering its “Pay in 3” function.
See also: Klarna launches its Pay in 3 BNPL option in Portugal
Klarna is now active in 19 markets on three continents.
Pay in 3 allows customers to pay for their purchases in three installments with no interest or fees. Klarna continues its practice of charging retailers offering the BNPL service as opposed to the customer.
Tradeinn, Sklum, Blackpeach and ISTO were the first retailers Klarna partnered with in Portugal, saying there would be more to come.
Sebastien Siemiatkowski, co-founder and CEO of Klarna, hailed Portugal as a place “with a population of early digital adopters who have already started to actively shy away from high-cost credit options.”
PYMNTS writes that Klarna expects a huge increase in holiday sales this season, with 17 million UK customers using BNPL recently, according to the BBC.
However, there have also been calls to regulate BNPL, fearing a new creation of bloated debt.
Read more: BNPL company Klarna expects to see biggest holidays yet in UK