J.P. Morgan Payments has enhanced its merchant services offering, by adding Swedish firm Klarna to offer the latter’s Buy Now, Pay Later (BNPL) offerings.
The integration of Klarna’s services is set to be operational later this year.
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J.P. Morgan Payments, which processes over $2tn transactions annually, will offer Klarna’s BNPL options to its clientele through the Commerce Solutions Platform.
Nearly 900,000 businesses that utilise J.P. Morgan Payments will gain the capability to present Klarna’s credit options to their customers, Bloomberg reported.
In addition, Klarna will become a part of the J.P. Morgan Payments Partner Network.
This network amalgamates J.P. Morgan Payments’ payment solutions and its external partnerships in assisting clients in developing and refining payment strategies.
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By GlobalDataKlarna chief commercial officer David Sykes said: “By collaborating with J.P. Morgan Payments, we’re bringing our payment solutions to even more businesses and fast-tracking our ambition to make Klarna payments available everywhere, for everything.”
Klarna CEO Sebastian Siemiatkowski said: “We in the more recent years have become a third party network like Amex and PayPal.
“We are a bank, so this is the natural evolution. We are moving into a world with increased competitive pressure with retail banking services,” in an interview with Bloomberg News.
He also highlighted that Klarna is exploring an American banking licence, which would give the firm the ability to “control even more customer experience and provide a richer service” as part of US expansion.
J.P. Morgan’s credit card division had previously prohibited customers from using Klarna or Affirm for payments.
The bank justified this decision by classifying such services as “are a form of credit” by stating the bank “not generally allow customers to pay for credit products” with their credit cards.
In an interview in Sao Paulo quoted by Bloomberg, JPMorgan global payments co-head Max Neukirchen said: “Klarna is now the first one but typically clients would want options there too and we want to provide those options.”
Last month, Klarna extended its global partnership with payments platform Stripe, enabling businesses on the Stripe platform across 25 countries to instantly integrate Klarna’s payment methods.
