Klarna has announced that it will make its flexible payment services available to Google Pay users in the UK.

The company, best known for its Buy Now, Pay Later (BNPL) services, said that users will be offered interest-free payment options at checkout.

Klarna on Google Pay will offer Google Pay’s UK consumers the option to pay in three instalments.

Users will also be able to manage their purchases in the Klarna app to track deliveries, handle returns and manage their repayments.

The company said that the partnership will make flexible payment options even more accessible for Google Pay users, who will be able to shop and pay with Klarna directly from their devices.

With more than 114 million active consumers worldwide, Klarna said it is continuing to expand its commerce network to offer customers an alternative to credit cards.

“This is a big moment for us and a major step towards our goal of being available at every checkout, everywhere,” said Raji Behal, head of Western and Southern Europe, UK & Ireland at Klarna. “Together with Google, we’re making it easier than ever for millions of shoppers to choose Klarna and pay in a smarter, more transparent way — all from their phone.”

Lisa Yokoyama, director of product management at Google Pay said that expanding its collaboration with Klarna to the UK underscores its goal to empower more people with the flexibility to pay how they choose.

"With people shopping on Google over a billion times a day, this broader footprint provides even more checkout options to help businesses drive tangible growth," she continued.

In January this year Klarna announced the launch of instant peer-to-peer payments in 13 European countries, including the UK.

The new feature lets Klarna's customers send money to friends or family directly from its app.

While transfers will initially only work between Klarna users, the company plans to expand to those without an account, as well as cross-border payments. Klarna is also exploring stablecoin-based payments to run alongside traditional currencies.

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