Klarna and Tekion Drive Flexible Payments Into the Auto Service Lane

Klarna, the global digital bank and flexible payments provider, is partnering with Tekion, innovator of the first end-to-end, AI-native platform serving the entire automotive retail ecosystem, to bring additional payment options to dealership service departments across the U.S.

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When a $1,200 brake job or a $3,000 transmission repair lands without warning, most customers have one option: put it on a credit card and figure it out later. That “figure it out later” is exactly how credit card companies want it, revolving credit is designed to keep customers paying minimums indefinitely, with no fixed end date and no clear path out.

Tekion Pay, the payments solution built into Tekion’s Automotive Retail Cloud (ARC) platform, brings Klarna’s full payments suite, including Pay in Full, interest-free Pay in 4, and longer-term financing options, directly into the service lane checkout. Every option comes with a fixed repayment schedule and a clear payoff date. Customers know exactly when they’re done.

Tekion ARC powers thousands of dealerships, running major brands, and serving some of the largest dealer groups in the country. Millions of dealership customers already interact with Tekion Pay every time they book a service, pick up their vehicle, or pay at the counter. Klarna’s integration means those customers now have the same transparent, flexible payment options they’d find on any modern retail checkout.

“When you’re paying for a repair, you deserve to know exactly what you’re committing to. Klarna gives customers a fixed schedule and a clear payoff date, a straightforward alternative to carrying a revolving credit card balance,” said David Sykes, Chief Commercial Officer at Klarna. “Tekion already sits at the center of how thousands of dealerships operate, which makes them the right partner to bring that choice to the service lane at scale.”

“Bringing Klarna into Tekion Pay means dealers can offer customers more ways to pay, right inside the transaction flow they already use every day,” said Jamie Fox, General Manager of Tekion Pay at Tekion. “Payment flexibility isn’t a nice-to-have anymore. Customers expect options, and now dealers can deliver them without any added friction.”

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