Dive Brief:
- The banking giant JPMorgan Chase will offer business customers of its payments division a buy now, pay later option with the help of the Swedish BNPL company Klarna, according to a Tuesday press release.
- A BNPL option will be available to businesses that use the JPMorgan Chase’s payments commerce software platform for payment processing, the release from Klarna said.
- The New York-based bank will make no-interest options available through the service as well as other loan offers, Klarna said. A JPMorgan spokesperson said those offers include short-term installment loans.
Dive Insight:
JPMorgan Chase’s payments arm is a major merchant acquirer in the U.S., processing payments for retailers, restaurants and other businesses.
The buy now, pay later option is expected to be available later this year, according to the release. A Klarna spokesperson declined to offer a more specific date.
The collaboration with JPMorgan is part of Klarna's effort to make its products universally available, Klarna Chief Commercial Officer David Sykes said in the press release.
"We're bringing our payment solutions to even more businesses and fast tracking our ambition to make Klarna payments available everywhere, for everything," he said in the release.
As part of the deal, Klarna will also join the JPMorgan Payments Partner Network. That network includes third-party payment options through card networks like Visa and MasterCard, and payment platforms such as FreedomPay.
