Klarna, a leading global payments platform, and Xero, a cloud-based accounting software provider, have announced a strategic partnership to bring 'buy now, pay later' (BNPL) financing options to small businesses.

The collaboration will allow Xero's customers to offer their customers Klarna's flexible payment plans, providing a more convenient and affordable way to make purchases.

By offering BNPL, businesses can increase their sales, improve customer satisfaction, and enhance their cash flow.

Klarna's BNPL service offers a number of benefits to both businesses and consumers.

For businesses, it can help to increase sales by offering customers a more attractive payment option.

It can also improve cash flow by providing businesses with upfront payments.

For consumers, BNPL can provide a more affordable way to make purchases by allowing them to spread the cost of a purchase over time.

“This partnership brings Klarna’s flexible payment options to micro businesses of all kinds so business owners can get paid on time and their customers can choose how and when to pay,” said David Sykes, CCO at Klarna.

“We know that maintaining a healthy cash flow is critical to a successful business, and offering more ways to pay supports increased business growth and getting paid faster," said Bharathi Ramavarjula, SVP of Payments & Ecosystem at Xero.  

"In fact, our recent research report shows that if a business doesn’t offer customers their preferred way to pay, they are prepared to take their business elsewhere. By enabling our customers with more ways to pay, including Klarna, we can help them retain customers and increase their revenue.”  

The partnership between Klarna and Xero is expected to benefit businesses and consumers alike.

By providing small businesses with access to BNPL financing, Klarna and Xero are helping to drive economic growth and innovation.