JP Morgan Payments, the world’s largest merchant acquirer, has signed an agreement with Klarna to expand payments options for its customers.

With the move, companies that rely on JP Morgan Payments for payment processing will have access to Klarna's payment methods, including Buy Now, Pay Later (BNPL) and flexible financing options.

Klarna's services aim to provide greater payment flexibility to JP Morgan's customers and are expected to be launched on JP Morgan Payments' Commerce Solutions Platform later this year.

Klarna will also become part of the JP Morgan Payments Partner Network, a B2B marketplace designed to connect JP Morgan customers where they can discover and integrate various third-party applications to enhance their payment processes.

JP Morgan's payments suite offers various functionalities designed to support businesses in managing financial transactions more efficiently, processing more than $2 trillion in payment transactions annually.Current services include merchant solutions to facilitate online and in-store transactions, manage incoming payments and streamline accounting processes, cross-border payment solutions and blockchain.

"By collaborating with JP Morgan Payments, we’re bringing our payment solutions to even more businesses and fast-tracking our ambition to make Klarna payments available everywhere, for everything,” said David Sykes, chief commercial officer, Klarna.

Klarna was recently hit with a $50 million fine from Sweden’s Financial Supervisory Authority Finansinspektionen (FI) over faults in its anti-money laundering protections.

In November last year, FI said it investigated the financial services firm’s compliance with anti-money laundering regulations during the period between April 2021 and March 2022, including its general risk assessment compliance and customer due diligence procedures.

The regulator said its investigation revealed that Klarna violated a number of key regulations and that its risk assessment compliance showed “significant deficiencies”.

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