Swedish BNPL giant Klarna has struck a new deal with JPMorgan Payments to see its flexible financing solutions integrated into JPMorgan Payments’ merchant services.

The partnership aims to broaden the accessibility of Klarna’s payment options, including its interest-free BNPL solution, according to Finextra.

This move is expected to provide merchants with a wider array of payment choices to enhance customer experience and drive sales.

Klarna, a leading BNPL provider, enables consumers to split purchases into instalments, often interest-free, while offering merchants tools to boost conversion rates and customer engagement. The company has rapidly expanded beyond BNPL, providing a comprehensive shopping ecosystem, including its own app and AI-powered personal finance management features.

JPMorgan Payments, a division of JPMorgan Chase, is one of the world’s largest payment processors, handling over $2tn in transactions annually.

The company provides end-to-end payment solutions, including acquiring, treasury services, and merchant processing, catering to businesses of all sizes.

As part of the deal, Klarna will also join the JPMorgan Payments Partner Network, which connects businesses with a suite of third-party payment solutions. This collaboration is expected to further accelerate Klarna’s expansion into new markets and merchant segments.

Klarna is reportedly preparing for an IPO in April, and this partnership with JPMorgan Payments could enhance its appeal to investors by demonstrating its continued growth and integration within mainstream financial infrastructure.

Klarna chief commercial officer David Sykes said, “By collaborating with JPMorgan Payments, we’re bringing our payment solutions to even more businesses and fast-tracking our ambition to make Klarna payments available everywhere, for everything.”