Buy Now, Pay Later (BNPL) firm Klarna has expanded its partnership with payment services provider Worldpay.

Under the agreement, Klarna will be the default payment method offered to Worldpay’s merchants around the world alongside card payments.

Klarna said it is “on a mission” to be available at every checkout, with the collaboration taking Klarna from an added on alternative payment method to a default method.

Klarna said that around 30 per cent of the payments it currently processes around the world are immediate transactions. In addition to BNPL services, Klarna offers consumers other ways to pay including longer-term financing.

In its annual Global Payments Report, Worldpay predicted that digital wallets like Klarna will grow at 15 per cent a year between 2023 and 2027.

“We want Klarna at every checkout, available everywhere, for everything, all the time,” said David Sykes, chief commercial officer at Klarna. “This expanded partnership is a massive leap towards that goal, making Klarna the default payment method for hundreds of thousands of retailers.”

CaixaBank recently announced it had partnered with Apple Pay to allow customers to split payments, claiming it is the first bank in Europe to offer BNPL services on e-commerce transactions.

As part of the partnership, CaixaBank said that customers with certain Apple devices will soon have the option to pay in full or spread the cost over multiple months directly at the point of purchase when paying with their CaixaBank cards on Apple Pay.

Earlier this month, HM Treasury has announced BNPL will come under the regulation of the Financial Conduct Authority (FCA) from 2026.

The government department said that new legislation will allow the regulator to apply rules on affordability, meaning that BNPL companies like Klarna and Clearpay will have to ensure that users of its services can afford repayments.

The announcement follows years of uncertainty about when BNPL regulation would be brought into law.

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