Klarna will now be offered as a default payment method to merchants using WooPayments, which is Automattic's answer to Shopify Payments. Klarna is currently offered as an alternative payment option that can be added at the request of the retailer, but moving forward, it'll be featured front and center and by default, without any action needed from the merchant.
And guess what? So will Affirm!
The identical news stories were announced separately by each BNPL provider, and each made it sound like it was some great exclusive partnership, but in reality, I'd imagine there are more default WooPayments + BNPL deals to come. (I wonder if Affirm and Klarna knew the other company was also given the same deal before making the announcements?)
It sounds like WooPayments is simply tapping into the higher fee world of BNPL and looking to partner with the industry's giants to cover a wide regional territory. Affirm's integration focuses on the US and Canadian markets, while Klarna casts a wide net across European markets (although it's aiming to grow its market share in North America).
David Sykes, Chief Commercial Officer at Klarna said:
“Our goal is to have Klarna at every checkout, everywhere, for every need, at any time. This expanded partnership takes us closer to that vision, establishing Klarna as the go-to payment option for tens of thousands of retailers globally.”
Wayne Pommen, Chief Revenue Officer at Affirm said:
“We are thrilled to expand our partnership with WooCommerce and to serve as a default payment option for thousands of their merchants. This is an exciting opportunity to expand Affirm’s reach, especially among small and midsized businesses, and bring our honest financial products to more and more of the places where people shop.”