Klarna adds big name UK partners as buy now, pay later boom continues

Klarna has reported a significant expansion in its network of UK merchants, evidencing a robust demand for buy-now pay-later (BNPL) services among British shoppers, as reported by City AM.

As of October, the Swedish fintech company boasts 41,496 merchant partners in Britain, a substantial increase from approximately 30,000 a year prior, according to figures Klarna shared with City AM.

Key partnerships established by Klarna within the last year include high-profile UK names like Argos, Airbnb, and the digital platforms of Boots.

Generating most of its revenue through merchant fees, Klarna is pursuing growth across new sectors within the UK market. Last month, it unveiled a collaboration with small business platform Xero, potentially enabling BNPL options for services such as plumbing and automobile repairs.

Moreover, Klarna is aiming to extend its reach into brick-and-mortar retail. It's working with financial technology titan Adyen to integrate Klarna as a payment method across Adyen's over 450,000 payment terminals.

The rise in BNPL providers like Klarna, Zilch, and Clearpay has been strikingly swift, especially as they offer mostly interest-free installment loans an appealing credit card alternative that's captivated millions in the UK.

On Tuesday, Klarna announced that close to 10 million UK customers had used its services over the past year across its range of products.

"Klarna's come a long way from the