How Klarna is Expanding BNPL with eBay in European Push
E-commerce marketplace eBay and Swedish payments company Klarna are expanding their strategic partnership across Europe, bringing Buy Now Pay Later (BNPL) payment options to new markets. BNPL services allow consumers to split purchases into instalments or delay payment for a set period.
The expansion follows the partnership's launch in Germany and extends Klarna's payment services to eBay users in the United Kingdom, Austria, France, Italy, the Netherlands and Spain, with additional markets planned for future rollout.
Payment innovation and authentication services
eBay shoppers can access Klarna's payment options including Pay in 3, which splits purchases into three interest-free instalments, Pay in 30 days, which allows a single payment after 30 days, and Financing, which enables longer-term monthly repayments for larger purchases.
These payment options become particularly relevant during peak shopping seasons, including the current holiday period.
The integration comes as BNPL usage increases among younger consumers. Data from PYMNTS Intelligence indicates that nearly 50% of Generation Z and Millennial consumers utilised BNPL services in the past year.
For high-value purchases, eBay maintains an Authenticity Guarantee service, where specialist authenticators verify eligible items before shipment.
This authentication process adds security for transactions involving premium items, from rare trading cards to pre-owned luxury accessories and timepieces.
“We are unlocking greater payment choice and flexibility for eBay shoppers by expanding our strategic partnership with Klarna"
Digital platforms and market expansion
The partnership introduces new functionality for Klarna users to resell items purchased through its app on eBay.
The feature automatically generates listing details and images, targeting the growing recommerce market across European territories.
This development aligns with increasing consumer demand for sustainable shopping options, enabling participation in the circular economy through simplified listing processes.
This integration coincides with eBay's removal of selling fees in the UK market and its implementation of eBay Balance, a digital wallet service for sellers. The platform maintains support for traditional payment methods, including credit cards, debit cards and digital wallets.
eBay: Attracting younger users
The expansion forms part of eBay's strategy to attract younger users while providing payment flexibility across its inventory of more than two billion listings. The marketplace specialises in unique inventory, including rare collectibles, pre-owned luxury items and specialist automotive parts.
Avritti Khandurie Mittal, VP & General Manager of Global Payments and Financial Services at eBay says: “We are unlocking greater payment choice and flexibility for eBay shoppers by expanding our strategic partnership with Klarna to several key markets.
“People turn to eBay's more than two billion listings to find the things they love, from a rare Pokemon trading card to a gently pre-loved Birkin bag or that well-priced Rolex watch.”
The collaboration strengthens both companies' positions in the European e-commerce market. For eBay, it provides enhanced payment flexibility and potential inventory growth through the automated listing generation and simplified delivery options.
For Klarna, it expands its presence in the resale market while strengthening its position as a payment provider in the e-commerce sector.
David Sykes, Chief Commercial Officer at Klarna, adds: “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.”
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