Google Pay Expands with Afterpay, Klarna Coming Soon

Google Pay users can now access Afterpay’s "buy now, pay later" (BNPL) services through the platform, with plans to add Klarna’s services next year, reports Payments Dive. The update, announced by Afterpay’s parent company Block in a press release on Tuesday, marks a new feature for the Google Pay digital wallet. Klarna, a Swedish BNPL competitor, confirmed its inclusion for 2024 in a separate press release.

Afterpay services are already live on Google Pay but are limited to select merchants, according to a Block spokesperson. Klarna will be available at both integrated and non-integrated merchants when it launches, Klarna spokesperson John Craske said via email. The specific timeline for Klarna’s rollout is yet to be determined. The addition of BNPL options aligns with a broader trend in payment flexibility. Drew Olson, Google Pay’s senior director of engineering, noted in the release that consumers are increasingly seeking more choice in payment methods. Recent Federal Reserve data highlights this growth, showing that BNPL usage among U.S. adults rose from 6.6% in 2021 to 9.3% in 2023.

Afterpay’s BNPL services are available through partnerships with major retailers like Ikea, Sephora, Nordstrom, and Best Buy. Klarna, similarly, is already accessible at well-known brands such as Rite Aid, Adidas, and Uber. This move by Google Pay follows Apple’s recent BNPL integrations, including partnerships with Affirm and Klarna, giving Apple Pay users access to installment financing at checkout. The announcements come as consumers prepare for the holiday shopping season, with Black Friday—on November 29 this year—marking the start of peak retail activity.