Bolt, following its agreement with artificial intelligence firm Palantir, has signed a new deal with Klarna to integrate flexible payments into its checkout platform.
You Can Afford This
This partnership will place Klarna’s payments technology prominently on the websites of merchants using Bolt’s CheckoutOS. Once the integration goes live in the U.S. later this year, Bolt’s customers can offer Klarna’s buy now, pay later (BNPL) services without additional effort.
A New Model for Flexible Payments
While Klarna is primarily known for its BNPL loans, Bolt CEO and co-founder Ryan Breslow told Techcrunch that the partnership is not solely about BNPL. The two companies plan to collaborate on building a new model for flexible payments.
Klarna has been expanding its footprint—both beyond BNPL and outside Europe. It 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. However, BNPL loans remain the company’s main source of revenue.
Klarna believes that BNPL offerings perform better when integrated at the merchant level and displayed on the product page in e-commerce. This is because it allows consumers to see the options before deciding if they can afford a purchase. On the other hand, displaying BNPL on the checkout page as a payment option is more convenient for consumers but does not necessarily help merchants drive conversion since the decision to buy has already been made.
A Significant Partnership for Bolt
The Klarna partnership is significant for Bolt, which has faced challenges such as leadership turnover and funding shortfalls. Breslow stepped down in 2022 amid allegations that he inflated metrics and misled investors. He later returned as CEO, issuing an ultimatum to Bolt shareholders and setting ambitious goals.
Bolt gained momentum by signing a deal with Palantir to launch an AI-powered checkout solution that customizes the shopping experience based on consumer behavior. This partnership is part of Bolt’s broader strategy to evolve into a financial services platform for consumers, similar to Klarna’s plans.
Challenges Ahead
Bolt’s adjusted strategy involves expanding as a consumer wallet that travels across merchants and will support stablecoins. However, the digital wallet space is highly competitive, making it difficult to determine if this strategy will justify the company’s $14 billion valuation.
Klarna’s integration with Bolt aims to enhance the checkout experience but faces competition from other companies like Paze. The success of these partnerships remains uncertain as both companies navigate a crowded and evolving market space.
