Buy now, pay later just found a bigger checkout lane in the UK.

Klarna is now available on Google Pay in the United Kingdom, allowing users to select Klarna’s interest-free Pay in 3 installment option directly at checkout.

For Klarna, the move advances its long-stated ambition to be “available at every checkout.” For Google, it strengthens the wallet’s appeal in an increasingly competitive digital payments market where flexibility often wins over loyalty.

What’s New: Pay in 3 Inside Google Pay

UK consumers using Google Pay can now split eligible purchases into three interest-free installments through Klarna. Once a transaction is complete, users manage payments, returns, and delivery tracking within the Klarna app.

The integration removes friction from the typical BNPL flow. Instead of redirecting to a separate financing page or re-entering payment details, shoppers can access installment options within the wallet they already use.

That convenience matters. Digital wallets have become default payment methods for millions of UK consumers, and embedding financing options directly into them shortens the path from intent to purchase.

A Strategic Expansion for Both Companies

Klarna serves more than 114 million active consumers globally and has been steadily expanding beyond standalone checkout integrations into platform-level partnerships.

By joining Google Pay’s UK ecosystem, Klarna taps into a payment surface that supports shopping activity across apps, websites, and Android devices. Google says people shop on its platform more than a billion times a day globally—making wallet placement a high-visibility channel.

For Google Pay, adding Klarna’s Pay in 3 strengthens its value proposition against rival wallets and embedded finance options. Digital wallets are increasingly becoming financial hubs, not just payment rails. Offering installment choices directly at checkout aligns with consumer demand for flexible budgeting tools.

The BNPL Battlefield in the UK

The UK is one of Europe’s most mature buy now, pay later markets. Klarna competes with providers like Clearpay and PayPal, both of which offer installment-based payment options at checkout.

Embedding into Google Pay may offer Klarna an edge in ubiquity. Rather than relying solely on merchant integrations, wallet-level placement increases discoverability and standardizes the payment experience across retailers.

However, the BNPL sector continues to face regulatory scrutiny. UK authorities have signaled tighter oversight around consumer protections, disclosures, and affordability checks. Expanding through established digital wallets could help normalize installment payments within clearer compliance frameworks.

From Checkout Feature to Commerce Network

Klarna’s strategy has evolved beyond financing into broader commerce services—shopping discovery, loyalty programs, and in-app order management. Integrating with Google Pay reinforces its position not just as a lender, but as a consumer-facing commerce platform.

Users will still manage repayments, returns, and tracking through the Klarna app, preserving its direct customer relationship even as transactions originate in Google’s ecosystem.

That hybrid model—wallet integration plus proprietary app control—allows Klarna to expand distribution without surrendering customer data and engagement touchpoints entirely to platform partners.

Why It Matters for Merchants

For UK merchants, the integration could reduce checkout abandonment by giving shoppers a familiar wallet interface combined with installment flexibility.

BNPL has consistently shown higher conversion rates and increased average order values in e-commerce environments. Embedding those options into widely adopted wallets simplifies activation and may reduce integration complexity for retailers already supporting Google Pay.

At the same time, merchants must balance conversion gains with fee structures and regulatory considerations tied to installment payments.

The Bigger Picture

The payments landscape is shifting toward embedded finance, where consumers expect flexibility without friction. Digital wallets are becoming control centers for that flexibility.

Klarna’s expansion into Google Pay UK signals that BNPL providers are no longer content to sit beside checkout—they want to live inside it.

As competition intensifies and regulation evolves, distribution partnerships like this may determine which players remain top of wallet—and which fade into the background.

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