Google Embeds Klarna BNPL Into Gemini AI Conversations

When this integration is completed, Google Pay users in the United States will see a Klarna button at checkout and will be able to access Klarna’s flexible payment options such as paying in four interest-free installments and longer-term financing for larger purchases, the companies said in a Tuesday (May 12) press release emailed to PYMNTS.

“As shopping moves into conversational and AI-driven environments, flexible payments become essential infrastructure for how people buy,” Klarna Chief Commercial Officer David Sykes said in the release. “Our partnership with Google brings Klarna directly into these moments of decision, giving consumers more control over how they pay.”

The new integration is built within Google Pay for checkout on Google surfaces powered by the Universal Commerce Protocol, according to the release.

It follows previously announced integrations of Klarna with Google Pay, Google Store, Google Play and Google Cloud.

“As agentic commerce scales, how people pay needs to keep pace with how they shop,” Ashish Gupta, vice president and general manager of merchant shopping at Google, said in the release. “By making Klarna’s flexible payment options available at checkout in the Gemini app and Search via Google Pay, we’re giving shoppers more flexibility, so they can make more confident, considered purchases with less friction.”

Klarna announced in February that it was supporting Google’s Universal Commerce Protocol, an open source standard designed to synchronize artificial intelligence agents and retail systems across the digital shopping journey.

The company said at the time that the collaboration deepened a multiyear relationship between Klarna and Google and reflected a concerted push toward interoperable, AI-driven transaction frameworks.

The PYMNTS Intelligence report “The AI On-Ramp: Data Shows How Everyday Tasks Build Consumer Habits” found that consumers are increasingly turning to AI for product discovery, such as finding the right pair of shoes.

The share of consumers using AI to find product links reached 31.4% in February, which was 1.6 percentage points higher than the October-January average.

The report found that product discovery was the only high-usage task that was both universal across all demographics and trending upward.