Top Three ‘Buy Now Pay Later’ Companies in Europe

July 23, 2021
Makayla Santino

Buy Now Pay Later (BNPL) technology has been transforming the payments industry throughout Europe. This form of payment offers consumers a more convenient and flexible shopping experience than ever before. BNPL was first introduced in the UK in 2014 and has gained traction every year since. There are three giants in the European BNPL industry today: Klarna, PayPal, and Laybuy.


Klarna is based in Stockholm, Sweden and offers a wide variety of financial services to its customers. These services include direct payments and of course BNPL payments. Klarna was originally founded back in 2005 by its current CEO, Sebastian Siemiatkowski, along with Niklas Adalberth and Victor Jacobsson. The company is now one of the most valuable fintech companies found in Sweden with a capital status of $1 billion. 

A new announcement from Klarna has revealed that the company will be collaborating with Liberis, a business finance platform, to expand the services it offers. The collaboration entails that Liberis will contribute revenue-based financing for merchants of Klarna. Klarna will additionally be able to offer merchant colleagues responsive financing services that are pre-approved with fair payment conditions that are determined by revenues and transactions. 

Another feat of the company is that it has recently reconfigured its app to improve the user experience for consumers in the UK. The improvements will involve the entire user journey and personalize content based on individual user preferences. 


PayPal is an online payments company originally founded in 1998 in California. The company’s main headquarters are located in San Jose, California. PayPal is active in the vast majority of countries that already utilize online currency transfers and other electronic substitutes to paper transactions through checks and money orders. 

The newest service announced by PayPal has been PayPal Pay in 3. This tech was introduced to allow any sized businesses throughout the UK the ability to offer customers BNPL payments without risking added risks and fees. With this option, businesses can provide customers with the option to pay over three interest-free payments and automatic repayments for purchases between £45 and £2,000.


Laybuy is the third and final powerhouse of BNPL payments in Europe. This company is the newest of the three and was only recently founded in 2017. Laybuy specifically focuses on BNPL services and provides its services to retail merchants in Australia, New Zealand, and the UK. 

Laybuy provides a “risk-free” fix that takes the accountability for credit risk of the weekly payments it offers. It also helps customers that are seeking to buy purchases that are outside of their credit limit. These customers can pay the disparity up-front and then spread out the rest of the fees. 

A recent partnership with Manchester United has put new eyes on the company. The partnership is in place to provide a new, interest-free pay alternative that will aid customers of Manchester United in purchasing merchandise and demonstrating their support of the club. The ultimate goal would be to make the sport increasingly accessible to football fans in the UK.




Bhattacharya, Megha. “3 Buy Now Pay Later Companies Transforming the European Market.” IBSintelligence, 23 July 2021,

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