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Klarna AB has expanded its relationship in Europe with virtual card issuing platform Marqeta to 13 new markets. Working with Marqeta, Klarna will offer one-time virtual cards to consumers in the United Kingdom, Germany, France, Italy, Spain, Netherlands, Poland, Belgium, Austria, Ireland, Norway, Finland, and Denmark.
The deal is the latest expansion of the ongoing ties between the two companies. In May, Klarna launched its shopping app in the U.K., and, four months later, expanded it to 12 additional European markets. Previously, the two companies teamed up to bring Klarna’s buy now, pay later service to Australia and New Zealand. Klarna first began using Marqeta’s platform in 2018 to offer one-time virtual cards in its mobile-shopping app in the United States.
The latest deal is expected to broaden Marqeta’s business in Europe. The volume of transactions processed by Marqeta’s European customers during the third quarter increased more than three-fold over the same period a year ago.
“Marqeta’s tech platform has helped us quickly realize new or improved products in complex markets,” Klarna chief technology officer Koen Kӧppen says in a prepared statement.
Kӧppen adds that partners like Marqeta have helped support Klarna’s rapid growth trajectory.
In related news, Afterpay Ltd. is partnering with Charlotte, North Carolina-based department store Belk Inc. to offer its buy now, pay later option to consumers shopping in-store and on Belk’s e-commerce site. Belk says it has seen a 50% increase in average order values for customers using Afterpay during the initial rollout. The majority of Afterpay users are Millennials and Gen Zers, which combined are expected to represent 50% of all spend in retail by 2032.
“We always strive to give customers the best and most convenient options for their shopping experience, and they’ve really responded to the buy now, pay later model, especially younger customers,” Belk chief executive Nir Patel says in a prepared statement.
