Klarna has announced a strategic partnership with Qatar Airways aimed at enhancing travel payment options for its customers. This collaboration allows travelers booking flights on the airline to utilize Klarna’s flexible installment payment solutions at checkout. The announcement was made on October 14, 2023, highlighting a significant move in the travel sector.
The partnership is made possible through Klarna’s integration with payments technology company Worldpay. Under this agreement, travelers can choose from various payment options, including paying in full, deferring payment for 30 days, splitting the ticket cost into three installments, or opting for monthly payment plans.
David Sykes, Klarna’s Chief Commercial Officer, emphasized the importance of this partnership, stating, “This partnership makes clear the growing global demand for greater flexibility and control when booking travel.” He added that Qatar Airways is now poised to offer Klarna’s services to millions of travelers across 17 countries, significantly improving the booking experience.
The rollout of Klarna’s services at Qatar Airways’ checkouts is expected to take place across 17 markets in Europe over the coming weeks. This initiative responds to the increasing consumer expectation for flexible payment options in the travel sector, which has been identified as one of Klarna’s fastest-growing areas.
Klarna’s expansion in the travel industry is not new; the company has previously partnered with major platforms such as Expedia, Airbnb, and Booking.com. These partnerships reflect a broader trend in the travel market, where consumers are presented with an expanding array of payment options.
The evolving landscape of travel payments is driven by a surge in alternative payment methods (APMs), which are reshaping how airlines, booking platforms, and global travelers conduct transactions. There are currently over 700 APMs available worldwide, which include digital wallets, real-time bank transfers, QR code payments, and loyalty-point transactions.
In regions like Southeast Asia, Latin America, and Africa, APMs have become the standard for payments rather than alternatives. As Damien Cramer, Senior Vice President of Global Travel at Nuvei, noted, “From a Western perspective, we think of alternative payment methods as something outside Visa or Mastercard. But here in Singapore, and in many emerging markets, they’re actually mainstream methods of payment.”
The significant growth in alternative payment options reflects broader consumer expectations for convenience and flexibility. As more travelers seek to manage their expenses effectively, partnerships such as that between Klarna and Qatar Airways are likely to become increasingly common. This collaboration not only enhances the travel booking experience but also aligns with the growing trend towards innovative payment solutions in the global marketplace.
