Klarna's Major Integration with Google Pay Launches for UK Customers
Klarna, the prominent buy now, pay later (BNPL) provider, is implementing a significant change that will affect millions of users across the United Kingdom. Starting this Monday, Klarna will be accessible as a payment option through Google Pay, enhancing convenience and flexibility for shoppers.
Expanding Payment Flexibility for Consumers
This integration allows customers to utilize Klarna's popular 'Pay in 3' feature directly via the Google Pay button during online and Android app checkouts. The 'Pay in 3' option enables users to split their payments into three interest-free instalments, providing a budget-friendly alternative to traditional payment methods.
Raj Behal, head of Western and Southern Europe, UK & Ireland at Klarna, expressed enthusiasm about the development, stating, "We're really excited to bring Klarna's fair, flexible and interest-free payment options to Google Pay users. This is a big moment for us and a major step towards our goal of being available at every checkout, everywhere."
How the New Payment Option Works
Users in the UK will notice this new feature when checking out on websites or Android apps that display the Google Pay button. To use Klarna through Google Pay:
- Look for the Google Pay button at checkout
- Select Klarna as your preferred payment method for orders valued at £1 or more
- Set up your payment plan according to your preferences
- Complete the checkout process seamlessly
It's important to note that purchases must be made in British Pounds (GBP) and meet the minimum price threshold established by buy now, pay later providers like Klarna.
Current Limitations and Future Implications
While this integration represents a substantial advancement in payment flexibility, there are some current limitations. Klarna will be available through Google Pay for online transactions and Android app purchases where the Google Pay button is present, but it will not be accessible for in-store Google Pay transactions at this time.
Klarna explained the rationale behind this partnership, noting that "a growing number of consumers now want pay later options at checkout. However, Klarna is not always available at the desired merchant checkout. Therefore, Google is connecting consumers with Klarna at checkout so they can choose a payment method that best suits their budget."
This collaboration does not mean Google is offering its own 'Pay in 3' service. Instead, Google is facilitating access to established buy now, pay later providers like Klarna, giving consumers expanded payment choices. In these transactions, Klarna will be responsible for providing the financing.
This development marks a significant step in the evolution of digital payment systems in the UK, potentially influencing how millions of consumers approach online shopping and budget management in the coming months.
