Stripe enters 'buy now pay later' partnership with Klarna

Size of deal highlights the growth potential and profitability of the 'Buy Now Pay Later' market

John Collison, president and co-founder of Stripe and Patrick Collison, CEO and co-founder.

Digital payments firm Stripe has entered an agreement with Swedish fintech Klarna to allow retailers to offer the option of paying for goods online in installments.

The two companies said the first results from retailers using the new system show that integration of Klarna has resulted in an average 27% increase in sales.