The news: Klarna is now available on Google Pay in the UK, per a press release.

UK Google Pay users will be able to select interest-free pay-in-3 installment methods at checkout. Consumers will additionally be able to manage their order within the Klarna app, including tracking packages, handling returns, and managing installment payments.

Why this matters: Within in-app tap-to-pay, Klarna stands to win more in-store volume, where the majority of Europeans shop: We forecast that physical retail will account for $4.73 trillion in sales for Western Europe in 2026. 

The Google Pay tie-up builds on the buy now, pay later (BNPL) provider’s recent efforts to break through to new European consumers, with its Apple Pay rollout last September, UK Klarna Card and Klarna balance debut in October, and in-app tap-to-pay launch in 14 different European markets in December.

Global strategy: Klarna may be trying to establish BNPL dominance near its Swedish headquarters as the US BNPL market crowds with competitors. The UK market is demonstrating eagerness for the product—BNPL use among UK adults has jumped from 14% in 2023 to 25% in 2024, per UK Finance data published in September 2025.

Implications for issuers: As BNPL providers make headway with young consumers looking for financial flexibility with payments, credit cards risk losing out on volume if they fail to diversify or advertise card-linked programs, like installments. In order to preserve its share of £66.7 billion ($87.9 billion) in card spend, per UK Finance, UK issuers should look to integrate with a BNPL provider like Splitit or create their own bank-backed plan to maximize their value to cardholders.