Klarna has expanded its partnership with lululemon into physical stores in the UK and Germany, launching its buy now, pay later service at the retailer's checkouts as it seeks a larger share of the global in-store payments market.

The rollout, announced on Wednesday, allows shoppers to use the Klarna app to scan a QR code at the till and either split purchases into interest-free instalments or delay payment for up to 30 days. The service is enabled through lululemon's integration with payments platform Adyen and is available immediately across participating stores in both countries.

The move builds on an online payments partnership that Klarna and lululemon have maintained for more than five years. Klarna said extending the service to physical retail reflects its strategy of broadening beyond e-commerce, noting that global in-person spending is estimated at around $28 trillion annually, almost four times the value of online transactions.

David Sykes, chief commercial officer at Klarna, said shoppers should not lose payment flexibility when buying in person. "Shopping shouldn't be less flexible the moment you walk into a store," he said. "We've spent years making online checkout smarter, and now we're bringing that same freedom to the till. Whether you're picking up your kit in person or ordering it online, you should be able to pay the way that best works for you."

Customers using the service do not need to complete a new application while waiting at the checkout or carry a separate payment card, according to Klarna. Instead, purchases are completed through the Klarna app after scanning the retailer's QR code, with payment options presented within seconds.

The agreement strengthens Klarna's presence in bricks-and-mortar retail as the company looks to replicate the payment options it has established online. Bringing its financing products into stores gives the Swedish payments group access to a significantly larger spending category while allowing retailers to offer the same payment methods across digital and physical channels.

The launch represents the latest stage in Klarna's efforts to integrate flexible payments into everyday shopping experiences through partnerships with major retailers and payment providers, extending its reach beyond online checkouts into traditional store environments.

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