On Tuesday, April 15th, 2025, Fiserv Inc. and Klarna AB announced their collaboration on Klarna's installment-credit service offered through Fiserv's Clover POS devices. Klarna provides payment processing for eCommerce businesses and "buy now, pay later" services. Fiserv is a fintech company that services businesses, merchants, financial institutions, and software providers with billing and payment solutions and systems for accepting payments. The payments company owns the brand Clover, a POS platform with products catering to restaurants, the service industry, and retail stores.
Key Takeaways
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Klarna
Klarna is a Swedish company that initially started as an online payments group in 2010. Their payment options include Pay in 4, Pay over time, Pay in full today, and Pay in 30 days. The platform allows customers to estimate their payment amounts through a cost breakdown based on the purchase amount and payment times.
It's partnered with over 675,000 retail brands globally and claims that brands using Klarna see a 23% increase in average order value, a 20% increase in conversion, and a 46% higher purchase frequency. Even if the payments platform is not partnered with a particular brand, customers can still use its services through Apple Pay, a one-time card that can be used where Visa is accepted, a Klarna credit card, and the Klarna app. The agreement with Fiserv now allows Klarna to be used directly through an in-store POS device, enabling the company to offer its payment options to more customers.
Fiserv and Clover
Fiserv acquired Clover in 2019, and since then has gained $2.7 billion in revenue from the brand in Q4 of 2023. The company continues to grow, showing a 29% rise in earnings year-over-year due to its ownership of Clover. As of March 2025, Clover is available in 11 countries, having recently launched its product in Australia last month. The brand powers about 3.5 million POS devices around the world and processes over $272 billion in annualized payment volume.
Just last year, Clover was named "Best Overall Commerce Platform" at the Annual FinTech Breakthrough Awards. Its abundance of offerings in payment solutions demonstrates why, as the company offers commerce capabilities ranging from payment management options to online ordering to Tap to Pay options on iPhone. Its point-of-sale systems include bundled stations for fixed-location merchants, portable credit card readers, compact countertop card readers, kiosks, and a kitchen display system.
Final Thoughts
The partnership between Fiserv and Klarna will no doubt be a boon to both companies as it offers Klarna's services to those doing their shopping in-store rather than online, while providing Clover users more convenient payment options. This shows Fiserv's keen understanding of current market trends, as a March 2025 survey revealed that BNPL payment options are gaining traction among Millennials and Gen Z shoppers, with 42% preferring it over traditional credit. As of the initial announcement, Klarna is available to select merchants using Clover, with a larger rollout planned for early 2026.
