Trump's tariffs may have cooled its initial public offering, but Klarna is still building a roster of well-known partners in the U.S. to offer its buy now/pay later loans.
Klarna's latest distribution deal expands its relationship with e-commerce auction website eBay, bringing its Pay in 4 and financing products to the United States. Klarna has been available on eBay in the U.K., Austria, France, Italy, the Netherlands, Spain and the U.K. since December 2024.
"With more than 2.3 billion listings, eBay is where people come to shop with purpose," said Avritti Khandurie Mittal, vice president and general manager of Global Payments and Financial Services at eBay in a release. "We've been very pleased with the positive customer and business impact Klarna has delivered in some of our key markets including the U.K. and Europe, and we're now excited to give millions of U.S. shoppers more flexible and affordable ways to pay on eBay."
The partnership is the latest in a series of marquee alliances Klarna has announced since its IPO
The expansion of the relationship is a win-win because it can help unlock incremental sales for eBay and gives Klarna wider access to a "huge" buying platform to which it can offer financing, Eric Grover, a principal at Intrepid Ventures, told American Banker.
EBay generated 51% of its $75 billion gross merchandise value from the U.S., according to its 10K filing with the Securities and Exchange Commission. That volume is up for grabs, according to Ben Danner, a senior research analyst at Javelin Strategy & Research that specializes in BNPL.
"I suspect part of the partnership [for eBay] here is to attract a younger audience who are the primary users of BNPL services like Klarna, as well as provide existing customers with more payment options, particularly as BNPL continues to become an expectation among consumers," Danner said.
"Expect Klarna to continue rapidly growing their merchant partnerships in the U.S.," Danner said.
Installment payments were already available on eBay through PayPal Credit and large card issuers like JPMorgan Chase, who offer post-purchase installment capabilities through their cards, Aaron McPherson, principal at AFM Consulting, told American Banker.
"This is one more option for buyers and sellers among several," McPherson said. "It is a good win for Klarna, which appears to be the first dedicated BNPL provider on eBay and will be a welcome option for those without a PayPal account or a card that supports installment payments."
EBay and Klarna are also launching a resell feature in the U.S., which allows consumers to list past Klarna purchases on eBay with pre-filled descriptions and images. Since launching in December 2024 outside of the U.S., over half a million eBay listings have been generated through Klarna's app, according to the companies.
The reselling feature represents a new kind of account origination and onboarding funnel for small and medium-size businesses that once would turn to community banks and credit unions for their first-time banking needs, Richard Crone, CEO and founder of Crone Consulting LLC, told American Banker.
"Historically, community banks and credit unions were the first financial partner for first-time entrepreneurs and SMBs," Crone said. "Today, Klarna Resell is taking that role, offering not just checkout flexibility but an embedded path for consumers to become merchants through the resell feature. This turns every Klarna user into a potential merchant and every purchase into a bankless, credit-free entry point into entrepreneurship."
