Adyen (ADYEN.AMS), an international fintech platform, announced on Monday that it is bolstering its partnership with Klarna, the AI-driven global payments network and online shopping aid. In the press release on its website, Adyen indicated this move allows Klarna to benefit from Adyen’s acquiring capabilities to streamline online card transactions.
Adyen partners with Klarna to streamline online card payments
As of December, Klarna had 150 million consumers and 500,000 retail partners worldwide. The existing partnership between the two companies supported interest-free Pay Now and Pay Later options for Adyen customers.
Focusing on a new strategy, this refreshed agreement establishes Adyen as an acquiring bank on behalf of Klarna. It will come into effect in 2024 and commence in Europe, North America, and Asia, simplifying online payments for Klarna’s users.
In November, a Yahoo Finance report highlighted a review of Adyen’s poor financial performance so far this year. Results for the first half of 2023 missed investor expectations on both the top and bottom lines. Transaction volume growth, which came in at 23%, also missed the mark by 8%. Adyen attributed its financial picture to competitive pricing in the digital segment, cost controls necessitated by inflation and interest rate hikes, and a hobbled sales team.
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The revamped Klarna partnership spotlights Adyen’s commitment to continue its growth within the digital economy. The company’s co-founder and CEO, Pieter van der Does, commented:
Klarna has, in many ways, revolutionized the digital shopping experience. I am proud to say we are now joining forces in a partnership set out to simplify payments and shopping in our respective areas of expertise.
