New finance solution drives ‘buy now, pay later’ conversions.

For many travellers, budget is a primary factor, influencing where they will go and how they will get there. In fact, price is the top consideration when booking travel for 62% of people.* Travellers might cut a trip short, take a less convenient flight or opt for accommodation outside a city centre because of cost.  

Klarna, an AI-powered global payments network, wanted to create greater flexibility in the trip planning process. Their ‘buy now, pay later’ (BNPL) solution makes it easier for people to book their ideal trip without the worry of having to pay the total amount in advance.  

As a payment partner for merchants globally—including Expedia Group in the UK, Germany, Sweden and Finland—Klarna saw an opportunity to expand and provide flexible BNPL options to travellers in the US and Canada. 

While Klarna is typically integrated on the checkout page of an e-commerce platform, our partnership presented an opportunity to take a new, pioneering approach to North America.  

We created a bespoke co-branded destination for Klarna to help US and Canadian travellers consider BNPL options when planning and booking their next getaway. From the idea to launch, this process took less than a year. 

Moving beyond a standard checkout integration, the Klarna landing page guides travellers through an experience optimised for conversion, so they can book now and pay over time. This approach allows Klarna to: 

• Provide flexible payment options and methods for travellers. 
• Access our extensive supply and inventory.
• Engage travellers earlier in the booking process with a trusted travel booking platform. 
• Elevate their role from a payment provider to an integral part of the traveller’s journey.

Our partnership has allowed Klarna to leverage valuable learnings from the European market and adapt them to the North American landscape.  

To identify what drives conversions, Klarna tested tailored incentives designed to add value for travellers.  

The long-standing and global relationship has built a strong foundation that Klarna can further refine and calibrate to the North American market with a ‘test and learn’ approach.

‘We’re always running some sort of deal with the Expedia Group team, testing new promotions and tailoring our approach based on real-time feedback’, said Mark De Avila, Head of Partner Success at Klarna. ‘This ensures that we continually meet customer needs while driving engagement and conversion’.

The strong performance of the solution shows that Klarna is well on track towards its goal of providing financial flexibility and choice for travellers: 

In the Canadian market, we’re also seeing strong momentum as Klarna is Expedia’s only payment provider offering a ‘buy now, pay later’ solution for travellers.  

‘Delivering these results is only possible through our close, collaborative partnership with Expedia Group. It’s a truly iterative process, working together to go to market with unique, tailored offerings that meet traveller needs’, De Avila said.

The partnership with Klarna uniquely blends the companies’ B2B and B2C strengths:

• Our extensive travel websites and apps make it easy for travellers to use Klarna’s flexible payment options, helping build direct consumer connections and grow their customer base.

• Our skilled team brings valuable expertise and strategic recommendations to help Klarna continuously iterate and launch new, market-leading products, which is critical to their market differentiation in the crowded BNPL landscape.