Klarna becomes default payment method for Worldpay merchants

By Gloria Methri

BNPL provider Klarna has signed a partnership to become a default payment method for Worldpay merchants around the world. Worldpay is one of the largest payment service providers, processing $2.3 trillion worth of commerce in 2023 for over a million merchants globally.

As consumers continue to choose new payment methods that suit their spending behaviours, Klarna is on a mission to be available at every checkout.

The collaboration with Worldpay is a step in making that goal a reality, transforming Klarna from an ‘alternative’ payment option added at a retailer’s request to a convenient default method that retailers expect.

Klarna offers consumers a choice of payment methods, including immediate payments, short-term, interest-free BNPL and longer-term financing. Globally, about 30% of the transactions it processes are immediate payments.

David Sykes, Klarna’s Chief Commercial Officer, said, “We want Klarna at every checkout, available everywhere, for everything, all the time. This expanded partnership is a massive leap towards that goal, making Klarna the default payment method for hundreds of thousands of retailers.”

In its annual Global Payments Report, Worldpay predicts that digital wallets will grow at 15% a year between 2023 and 2027. While Klarna is well-known for its interest-free BNPL offer, a third of the transactions it processes are immediate payments by card or direct account-to-account.

Pete Wickes, General Manager EMEA, Worldpay, said, “Worldpay’s first-of-its-kind collaboration underscores our commitment to providing merchants with impactful innovation at scale to create the best payment experiences. Klarna is at the cutting edge when it comes to delivering new ways to pay. Our expanded relationship will support Klarna’s transformation into a network of choice for global merchants looking to improve the consumer experience and reach their potential in a competitive digital landscape.”