Klarna, a popular “buy now, pay later” service, is to be available on Google Pay starting next year.

In 2025, Google Pay customers in the U.S. will be able to use Klarna to split payments into four interest-free instalments directly from their Android devices.

To start, users need to create a digital Klarna card in their app, add it to their Google Wallet, and then use it to shop in brick-and-mortar stores or online. The new function will work anywhere Google Pay is accepted, offering convenience and flexibility for purchases worth $35 and more.

Besides added payment convenience, customers will be able to manage their purchases and repayments, track deliveries, handle returns, etc. – all within the Klarna AI-powered e-commerce app.

Klarna is constantly enhancing its payment options globally and partnering with retailers to offer seamless, secure payment methods that cater to a wide range of shopping preferences?. It currently has about 85 million active consumers and over 600,000 merchants leveraging its shopping platform and attached services.

Among Klarna’s latest partnerships, there’s Staples Inc., a retailer offering office supplies, furniture, cleaning products, technology solutions, and custom printing; John Lewis Partnership, UK’s largest employee-owned omnichannel business; and a popular video communications platform Zoom.

Collaboration with Google Pay expands the potential of Klarna’s BNPL services. As of 2024, Google Pay is used by over 150 million people globally across 180+ countries. It has a particularly strong presence in India, where it has about 67 million active users. In the U.S., the platform is the third most popular mobile payment system, with around 25 million users, following Apple Pay and Starbucks mobile payment solutions.