Adyen to Act as Acquiring Bank for Klarna, Starting 2024

Adyen to Act as Acquiring Bank for Klarna, Starting 2024

Time Stamp: December 4, 2023 1:14 PM
Adyen to Act as Acquiring Bank for Klarna, Starting 2024 PlatoBlockchain Data Intelligence. Vertical Search. Ai.

In a move
to “simplify payments”, the financial technology platform Adyen, has announced that
it is expanding its partnership with Klarna, an AI-powered global payments
network. The two companies have worked together for over 10 years, with Adyen
offering Klarna’s payment methods to its merchant customers.

Under the
new strategic partnership, Adyen will begin serving as the acquiring bank for
Klarna’s various consumer payment offerings, starting in Europe, North America,
and Asia in 2024. As the payment provider, Adyen will help simplify card
payments for Klarna’s 150 million consumers and 500,000 merchant partners
globally.

“Adyen’s
financial technology platform combined with Klarna’s various consumer offerings
will raise the standard of payments and consumer experiences worldwide,” Pieter
van der Does, the Co-Founder and Co-CEO of Adyen, commented:

Klarna’s
payment options include interest-free “Pay Now and Pay Later”
installment plans. By leveraging Adyen’s acquiring capabilities, the
partnership aims to raise the standard for payments and consumer experiences
worldwide. The company earned $1.85 billion from its operations in 2022, which
translated to a 21% increase compared to the previous year.

Adyen is a
Dutch publicly-listed payments firm offering financial technology to companies
worldwide, including big names like Microsoft, Uber or Meta. Despite a fivefold
revenue drop in H1 2023, the company was able to report a higher net income of $283.17
million.

“Adyen aligns
seamlessly with Klarna’s role as the preferred payments network and shopping
assistant for consumers and retailers worldwide,” Sebastian Siemiatkowski, the CEO
of Klarna, added.

Adyen’s UK Banking License
and Valuation Drop

In September,
Adyen obtained a banking license in the United Kingdom. This strategic move
marks Adyen’s foray into the banking industry and enables the firm to offer
financial support to small and medium-sized enterprises in the UK.
Additionally, the license ensures that Adyen can maintain its operations in the
UK under the Temporary Permissions Regime following Brexit.

Adyen is
already established as an acquiring bank in the Netherlands, holding a banking
license that allows the company to process merchant payments directly. This
capability streamlines the settlement process, which typically requires several
days when involving banking partners.

In a
related financial update, Adyen experienced a downturn in its stock value
following the release of financial results that fell short of investor
expectations. As reported by Finance Magnates in August, this downturn led
to a substantial decrease in the company’s valuation, with a loss of $20
billion in a single day. Continuing this trend, Adyen’s share prices have
further declined, reaching levels last seen during the pandemic lows of April
2020.

In a move
to “simplify payments”, the financial technology platform Adyen, has announced that
it is expanding its partnership with Klarna, an AI-powered global payments
network. The two companies have worked together for over 10 years, with Adyen
offering Klarna’s payment methods to its merchant customers.

Under the
new strategic partnership, Adyen will begin serving as the acquiring bank for
Klarna’s various consumer payment offerings, starting in Europe, North America,
and Asia in 2024. As the payment provider, Adyen will help simplify card
payments for Klarna’s 150 million consumers and 500,000 merchant partners
globally.

“Adyen’s
financial technology platform combined with Klarna’s various consumer offerings
will raise the standard of payments and consumer experiences worldwide,” Pieter
van der Does, the Co-Founder and Co-CEO of Adyen, commented:

Klarna’s
payment options include interest-free “Pay Now and Pay Later”
installment plans. By leveraging Adyen’s acquiring capabilities, the
partnership aims to raise the standard for payments and consumer experiences
worldwide. The company earned $1.85 billion from its operations in 2022, which
translated to a 21% increase compared to the previous year.

Adyen is a
Dutch publicly-listed payments firm offering financial technology to companies
worldwide, including big names like Microsoft, Uber or Meta. Despite a fivefold
revenue drop in H1 2023, the company was able to report a higher net income of $283.17
million.

“Adyen aligns
seamlessly with Klarna’s role as the preferred payments network and shopping
assistant for consumers and retailers worldwide,” Sebastian Siemiatkowski, the CEO
of Klarna, added.

Adyen’s UK Banking License
and Valuation Drop

In September,
Adyen obtained a banking license in the United Kingdom. This strategic move
marks Adyen’s foray into the banking industry and enables the firm to offer
financial support to small and medium-sized enterprises in the UK.
Additionally, the license ensures that Adyen can maintain its operations in the
UK under the Temporary Permissions Regime following Brexit.

Adyen is
already established as an acquiring bank in the Netherlands, holding a banking
license that allows the company to process merchant payments directly. This
capability streamlines the settlement process, which typically requires several
days when involving banking partners.

In a
related financial update, Adyen experienced a downturn in its stock value
following the release of financial results that fell short of investor
expectations. As reported by Finance Magnates in August, this downturn led
to a substantial decrease in the company’s valuation, with a loss of $20
billion in a single day. Continuing this trend, Adyen’s share prices have
further declined, reaching levels last seen during the pandemic lows of April
2020.

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