The partnership brings together a globally
recognized BNPL provider with the most trusted name in travel
payments
WASHINGTON, Sept. 10,
2024 /PRNewswire/ -- UATP, the global payment
network that enables organizations to simplify payment processes
and expand their payment capabilities, has announced a new
partnership with Klarna, the AI-powered global payments network.
The partnership allows airlines to offer Klarna's flexible payment
services, including interest-free Buy Now Pay Later, providing
customers with more flexible payment options for travel products
and services.
UATP's collaboration with Klarna represents the convergence of
two highly successful payment technology companies, with mutual
benefits on the horizon. Klarna gains immediate access to UATP's
vast base of airlines and travel agencies and is a preferred BNPL
partner for EU and APAC.
The $1 trillion air travel sector
is a key growth opportunity for Klarna because credit cards account
for 70% of retail travel payments. This leads to high costs for
airlines, who spend $20bn a year on
payment processing, and massive interest payments for consumers.
Wherever Klarna is available on a travel site, consumer adoption is
very high: the total value of travel booked through Klarna has
increased by 50% in the past year.
For UATP, integrating Klarna further strengthens the payment
network's support for BNPL options. Offering a variety of BNPL
choices helps UATP merchants tap into a global BNPL market
estimated at $14.55 billion this year
and is expected to grow at a CAGR of 26.50% to reach $60.47 billion by 2030.
The Convenience and Ease of BNPL from a Trusted
Provider
"BNPL is an essential payment option for travel merchants to
provide their customers. It offers flexibility and convenience to
encourage travelers to complete transactions and boost conversion
rates," says Zach Ornelas, SVP of
Global Sales for UATP. "But to reap the full benefits of having
this payment option, merchants need a BNPL partner that their
customers know and trust. Klarna is that partner."
Klarna offers consumers a choice of ways to pay including
immediate payments, short-term, interest-free BNPL and longer-term
financing. Globally, about 30% of the payments Klarna processes are
immediate payment.
Klarna's BNPL is a short-term, interest-free credit service with
no fees when paid on time. Klarna underwrites every transaction
based on strict eligibility assessments and boasts a 99% repayment
rate globally. This model provides consumers with a transparent and
predictable repayment structure, making it easier to manage their
finances without accumulating interest.
A Speedy and Complementary Expansion into the Travel
Vertical
By leveraging UATP's existing connections and expertise in
alternative forms of payment, the partnership between UATP and
Klarna enables airlines and other travel merchants on the UATP
network to introduce BNPL more quickly, eliminating
resource-intensive implementation work and lowering the cost per
transaction. It also allows Klarna to quickly access the travel
merchants connected to the UATP network, expanding their exposure
to the travel vertical and enhancing their growth opportunities in
this sector.
"Travel is perfect for interest-free buy now, pay later,
allowing travelers worldwide to spread the cost of their trips and
without getting stuck paying sky-high credit card interest rates,"
says Erin Jaeger, Head of
North America, Klarna, "This
agreement with UATP means we can quickly bring these benefits to
many more airlines and tap into the huge growth opportunity which
the $1 trillion travel industry
represents for us.""
The UATP and Klarna partnership is expected to go live in Q3 of
2024. For more information about UATP and its partnership with
Klarna, please contact Wendy Ward at
wendy.ward@uatp.com.
ABOUT UATP
UATP is the global payment network simplifying payments in complex
industries. We make it easy for businesses to make or accept any
type of payment; open new markets, drive growth and reduce costs
for Issuers, Merchants, vendors, agents, aggregators and more. UATP
is continually innovating to connect companies to new forms of
payment (AFPs), and our easy-to-use data tools,
DataStream® and DataMine®,
provide comprehensive account details to Issuers and Corporate
Account Holders. Our team has decades of experience with the
ever-changing payments landscape, and our reliable and proven
technology ensures our global customers get more from every
payments experience. Learn more at uatp.com.
Accepted as a form of payment for corporate business travel
worldwide by airlines, travel agencies and Amtrak®; UATP
accounts are issued by: Aeromexico; Air Canada (TSE: AC); Air
China; Air New Zealand (ANZFF.PK); Air Niugini; American Airlines
(NASDAQ: AAL); APG Airlines; Austrian Airlines; Avianca Airlines;
BCD Travel; China Eastern Airlines (NYSE: CEA); Delta Air Lines
(NYSE: DAL); EL AL Israel Airlines; Etihad Airways; Fareportal;
Frontier Airlines; GOL Linhas Aereas inteligentes S.A. (NYSE: GOL
and Bovespa: GOLL4); Hahn Air; High Point Travel; Japan Airlines
(9201:JP); JetBlue Airways; LATAM Airlines; Link Airways; Qantas
Airways (QUBSF.PK); Shandong Airlines; Sichuan Airlines; Southwest
Airlines; Sun Country Airlines; TUIfly GmbH; Turkish Airlines (ISE:
THYAO); United Airlines (NASDQAQ: UAL) and WestJet. AirPlus
International issues the UATP-based Company Account for Lufthansa
German Airlines.
About Klarna
Since 2005 Klarna has been on a mission
to accelerate commerce with consumer needs at the heart of it. With
over 150 million global active users and 2 million transactions per
day, Klarna's fair, sustainable and AI-powered payment and shopping
solutions are revolutionizing the way people shop and pay online,
empowering consumers to shop smarter with greater confidence and
convenience. More than 500,000 global retailers integrate Klarna's
innovative technology and marketing solutions to drive growth and
loyalty, including H&M, Saks, Sephora, Macy's, Ikea, Expedia
Group, Nike and Airbnb.
Klarna is a founder-led company backed by Sequoia Capital and a
broad base of internationally distinguished investors and
institutions including Bestseller, Commonwealth Bank of
Australia, Mubadala Investment
Company, Silver Lake, Dragoneer,
GIC, BlackRock, Wellcome Trust, CPP Investments and Atomico. For
more information, visit Klarna.com
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SOURCE UATP