Bolt has reached a new agreement with Klarna to integrate flexible payments into its CheckoutOS platform. Starting later this year in the U.S., Bolt’s customers will be able to offer Klarna’s buy now, pay later (BNPL) services seamlessly without additional effort.

You Can Afford This

Expanding its reach both beyond BNPL and outside Europe has been a priority for Klarna. The company recently launched a debit card and unveiled plans to become a super app similar to China’s Alipay and WeChat Pay, aiming to handle all aspects of customers’ lives.

BNPL loans remain the core of Klarna’s business, popular among consumers but uncertain in their impact on merchants. Research indicates that BNPL offers perform better when integrated at the merchant level and displayed on product pages in e-commerce. The idea is to present BNPL as a way for consumers to see if they can afford an item right away.

Displaying BNPL options on the checkout page helps convenience but doesn’t necessarily boost conversion because shoppers are already ready to buy when reaching this stage.

A Significant Partnership

The Klarna deal is significant for Bolt, which has faced challenges including leadership changes and funding issues. CEO Ryan Breslow returned after stepping down amid controversy and issued an ultimatum to shareholders, aiming to raise $450 million and achieve a valuation of $14 billion.

Bolt partnered with Palantir to launch an AI-powered checkout solution that customizes the shopping experience based on consumer behavior. Like Klarna, Bolt aims to evolve into a comprehensive financial services platform for consumers. The partnerships mark progress but leave Bolt’s long-term prospects uncertain.

It is unclear how adding Klarna will add value compared to other BNPL offerings for merchants. Given the competitive landscape in both checkout and digital wallet spaces, it remains to be seen whether these moves form a cohesive strategy or just a broader roadmap to justify the valuation.