Dive Brief:

• Swedish buy now, pay later provider Klarna is expanding a partnership with e-commerce giant eBay to extend its services to customers in more European countries, according to a Thursday press release.
• After launching in Germany in March 2022, eBay is now offering Klarna’s BNPL option to shoppers in the U.K., Austria, France, Italy, the Netherlands and Spain. The two companies plan to expand the service to more markets soon, per the press release. A spokesperson for the companies declined to comment on any plans they might have for the U.S.
• The tie-up with letting EBay customers choose a Klarna payment option, with choices offered at the point of purchase, including paying for goods and services without interest in three installments, or over 30 days. Klarna may also offer longer-term financing with interest for pricier purchases.

Dive Insight:

“With more flexible payment options and the new resell feature, we’re making it easier than ever for millions of people to buy and sell everything — from collectible sneakers to strollers and designer bags—on eBay,” Klarna Chief Commercial Officer David Sykes said in the statement.

In addition to the link with San Jose, California-based eBay, Klarna has added other tech companies to its roster of partners this year. Over the summer, Klarna teamed up with Adobe Commerce to let sellers offer its buy now, pay later payment options. Last month, the company extended its BNPL service to Google Pay users. 

Klarna is trying to reach more customers as BNPL spending rises during the year-end holiday season. As credit card interest rates continue to climb, shoppers have been expected to turn to buy now, pay later to manage their holiday spending and avoid high interest rates. On Cyber Monday earlier this month, BNPL transactions rose 5.5% over last year to $991.2 million, according to an Adobe Analytics report. 

With respect to its own financing, Klarna is seeking to raise more investment capital from the public market. Last month, the company confidentially filed a draft registration statement with the Securities and Exchange Commission as part of its plan to go public in the U.S. The Stockholm-based company didn’t set a price range for its stock, but Bloomberg reported Klarna was valued at roughly $14.6 billion.

The expansion of Klarna’s offering in Europe follows a recent eBay policy change in the U.K. In October, the online marketplace stopped charging U.K. consumers a fee when they’re selling to other consumers, according to a company press release. Ebay’s recent changes are part of its efforts to improve the shopping experience for sellers, the company said.