How Worldpay & Klarna will Integrate Global Payment Systems

The acceleration of digital payments has created unprecedented complexity for merchants managing multiple payment providers. Today's retailers routinely handle traditional card payments, digital wallets, bank transfers and buy-now-pay-later services –with each of which requiring separate technical integration, risk management and settlement processes.

Now, two of the sector's largest players have announced a move aiming to simplify the payment landscape. Worldpay, which processes US$2.3tn in annual transactions and Swedish payments platform Klarna have announced a technical partnership that promises to streamline payment integration for merchants globally.

The collaboration marks a shift in how alternative payment methods are incorporated into e-commerce systems. Rather than requiring separate technical implementation, Klarna's services will be automatically available through Worldpay’s existing merchant infrastructure.

Technical framework

Worldpay will integrate Klarna’s payment solutions through a unified API (Application Programming Interface) connecting both companies' payment infrastructures, enabling Worldpay’s one million merchants to access Klarna’s services through their existing payment dashboard, eliminating the need for separate technical implementation or additional coding requirements.

The move positions Klarna's payment solutions, including its buy-now-pay-later service which allows customers to split purchases into interest-free instalments, alongside traditional card payments at checkout for Worldpay’s merchant customers.

The partnership represents a transformation in Klarna’s market position from an alternative payment provider to a mainstream payment network, placing its services on equal footing with established payment methods.

Digital wallet growth

The integration comes as Worldpay’s market analysis indicates digital wallet usage will increase by 15% annually until 2027. This growth trajectory reflects changing consumer preferences in global markets, where digital payment methods are becoming increasingly prevalent for both online and in-store transactions.

“We want Klarna at every checkout, available everywhere, for everything, all the time,” says David Sykes, Chief Commercial Officer at Klarna. “This expanded partnership is a massive leap towards that goal, making Klarna the default payment method for hundreds of thousands of retailers.”

Payment evolution

Klarna, which processes 2.5 million transactions daily through its network of 600,000 merchants including Uber, Nike and Airbnb, has evolved beyond its buy-now-pay-later origins. The platform now handles immediate payments for 30% of its total transaction volume through direct bank transfers and card payments. ​​​​​​​

The expansion of services reflects Klarna’s development from a specialist buy-now-pay-later provider into a comprehensive payment network. The company’s platform now incorporates artificial intelligence for payment processing and shopping assistance, offering consumers multiple payment options at checkout.

Market integration

The partnership marks a shift in how alternative payment methods are integrated into e-commerce platforms. Rather than merchants needing to specifically request Klarna’s services, the payment option will now be available as a standard feature through Worldpay's payment processing infrastructure.

This standardisation simplifies the integration process for merchants, removing technical barriers to adoption and potentially accelerating Klarna’s market penetration across Worldpay's global merchant network.

Consumer choice

For consumers, the integration means greater payment flexibility across a wider range of merchants. Klarna's services include immediate payments, short-term interest-free instalments and longer-term financing options, providing payment choices that align with different spending preferences and financial circumstances.

The partnership responds to evolving consumer expectations for payment flexibility, with Worldpay's data indicating sustained growth in alternative payment method adoption across global markets.

The integration aims to provide merchants with additional tools to meet consumer demand for payment flexibility while maintaining the streamlined checkout experience expected in modern e-commerce.

Pete Wickes, General Manager EMEA at Worldpay, says: “Worldpay's first of its kind collaboration with Klarna underscores our commitment to providing merchants with impactful innovation at scale to create the best payments experiences. Klarna is at the cutting edge when it comes to delivering new ways to pay. Our expanded relationship will support Klarna's transformation into a network of choice for global merchants looking to improve the consumer experience and reach their potential in a competitive digital landscape.”

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