Our mission is to reimagine how consumers spend and save in their daily lives.
We help people save time, money and put them in control of their finances.
Our vision is a world where Klarna empowers everyone, everywhere, through
seamless commerce experiences-as a personalized, trusted assistant making
financial empowerment effortless.
We are a technology company building the next-generation commerce network.
We have built one of the largest commerce networks in the world, measured by the
number of consumers and merchants, serving approximately 111 million active
Klarna consumers and approximately 790,000 merchants in 26 countries as of June
30, 2025, and facilitating $112 billion of GMV in the last twelve months ended
June 30, 2025. Our flexible and personalized products, trusted consumer brand,
global distribution and proprietary scalable infrastructure are the foundations
enabling us to become our consumers' everyday spending and saving partner,
available everywhere and for everything. Through our history, we have
consistently innovated and challenged the status quo, evolving our network from
a consumer-focused payments tool to a global commerce network that enables
merchant success.
Klarna was built to address the manifold pain points in commerce today,
including inefficiency, lack of trust, prevalence of fraud, impersonal
relationships between consumers and merchants and high interest and
credit-related fees that are harmful to consumers, merchants and society at
large.
We began by pioneering a new approach to online payments, designed to bridge
uncertainty in the transactions between consumers and merchants by providing
short-term flexible credit that is predominantly interest-free and accelerating
growth for merchants. Our approach leverages differentiated underwriting
capabilities, utilizes bank deposits and other low-cost funding sources and is
monetized primarily by driving increased GMV for merchants on our network rather
than from only charging interest to consumers. In the last twelve months ended
June 30, 2025, 98% of transactions conducted on our network were interest-free.
This results in lower fees, which we believe drives consumers and, in turn, our
merchants, to shift more of their commerce activity onto our network, aligning
the financial success of our consumers and merchants with our long-term ambition
of durable growth. We have also built a unique advertising solution, connecting
engaged consumers to advertisers in a personalized, commerce-centric
environment.
Consumers come to Klarna to pay flexibly and securely, to find goods, services
and experiences that are relevant to them, and to manage their purchases and
savings, all in a trusted environment. We designed our network to provide
consumers with more control and flexibility over their payments, to save them
time and money and to effortlessly put them in control of their finances. This
allows us to become an important growth partner for merchants of all sizes,
enabling them to grow their businesses and acquire new customers, convert more
transactions with higher AOVs and retain customers with increased loyalty, all
while establishing and fostering personal relationships with their customers.
Just as card networks revolutionized the way merchants and consumers received
and made payments decades ago, we have created a new type of network built upon
fairness, sustainability and innovation, while removing intermediaries,
complexity and fees along the way.
We accelerate commerce by connecting consumers and merchants with comprehensive
payment and tailored advertising solutions, both online and offline. Our payment
options provide consumers with the choice to pay however they prefer: Pay in
Full settles transactions instantly, Pay Later allows consumers to complete a
purchase today while deferring payment to a later date or into installments and
Fair Financing allows consumers to settle payments over a longer period of time.
We offer the benefits of both open and closed networks. We open our network to a
broad consumer and merchant ecosystem, similar to Visa, MasterCard and Amex, but
also benefit from our proprietary closed-loop network where we issue, fund,
process and settle the entire payment, while retaining a direct relationship
with our consumers. Payment options are facilitated across numerous channels,
including directly at our merchants’ online or in-store checkouts, in the Klarna
app, with the Klarna card or using Apple Pay or Google Pay.
We have achieved global consumer and merchant scale. Our 111 million active
Klarna consumers are diverse—from a wide range of income levels and educational
backgrounds—and representative of the broader population. In Sweden, our most
mature market, approximately 83% of adults were active Klarna consumers as of
June 30, 2025, according to our estimates. Our consumers are financially
responsible, too—in the last twelve months ended June 30, 2025, 99% of the
consumer loans that we extended were paid on time. Merchants view Klarna as an
important growth partner because of our consumer scale and global reach. Our
approximately 790,000 merchants include some of the largest global brands—on
average, 48% of the top 100 merchants in each of the major markets we serve,
which include the United States, the U.K., the Nordics, Germany, Austria,
Belgium, Spain, France, Italy, the Netherlands and Switzerland (based on data
from eCommDB and Digital Commerce 360) used Klarna in the last twelve months
ended July 31, 2025 to facilitate payments, while an even greater percentage
(66%) advertised on our network during the same period. Our broad adoption
across merchants contributes to our GMV diversification, with no single merchant
representing more than 10% of our GMV in any of our major markets in the last
twelve months ended June 30, 2025. Through both our payment and advertising
solutions, we help our merchants attract new customers, drive higher AOV with
higher purchase frequency and offer frictionless commerce and higher conversion
rates. We do all of this while allowing merchants to seamlessly integrate Klarna
into their existing operations and infrastructure, retaining full control over
their brands.
Klarna sits at the center of a global ecosystem. We connect an array of
different financial services and commerce organizations, from PSPs, traditional
banks, card networks and open banking providers, to commerce enablers,
technology partners, in-store payments providers and shipping and return
logistics providers, to improve the commerce experience for our consumers and
merchants through a unique global network. We continue to grow our network
across verticals and geographies to better serve consumers and merchants.
We believe that our credit underwriting capabilities, enabled by our proprietary
data from approximately 3.0 million transactions made on average per day on our
network from 111 million active Klarna consumers in the last twelve months ended
June 30, 2025, differentiate us from other networks. We are able to make
underwriting decisions in seconds with our fully automated processes and
underwrite every transaction in real time. We also provide a small spending
capacity that gradually increases as consumers responsibly spend more with
Klarna, and clear and transparent repayment terms that encourage borrowers to
repay on time. All of this distinguishes our financing solutions from market
alternatives. In the last twelve months ended June 30, 2025, our average balance
per active Klarna consumer was $80 (Pay in Full: $0; Pay Later: $88; Fair
Financing: $408) (compared to an average balance per credit card of
approximately $6,730 in the United States in 2024, according to Experian), and
average loan duration was approximately 40 days (38 days for Pay Later and 180
days for Fair Financing) (compared to a typical loan duration of more than five
years at a typical Nordic bank in 2024, according to publicly available
information, and an average of 2.9 years of a typical U.S. personal bank loan in
2022, according to the U.S. Federal Reserve). This allows us to quickly react to
market changes and efficiently manage credit risk. Our underwriting process
results in credit losses that are generally lower than the industry average:
for example, our provision for credit losses represented 0.52% of GMV in the
last twelve months ended June 30, 2025, while the loan losses as a share of
total loans averaged 2.6% for our main competitors in Sweden in 2024, based on
publicly available information of Swedish banks and payment solutions providers,
and 2.92% for commercial banks in the United States in 2024, according to the
Federal Reserve Bank of St. Louis. In addition to lower credit losses, we
believe that our underwriting process provides more value to consumers and
merchants than alternative payment methods, which helps drive our financial
performance.
We have been a constant pioneer in our industry. In 2005, when online shopping
was still nascent and marked by distrust, we launched Pay Later products to
guarantee consumers would pay only after they had received goods, while also
pioneering a new approach to credit. In 2010, we launched our Pay in Full
product to give consumers more choice and control over how they pay. In 2017, we
started building a disruptive brand to help people streamline their financial
lives. As we learned that consumers wanted to use Klarna everywhere, we launched
the Klarna card in 2018. That same year, we launched the Klarna app, which
enables our consumers to track all their purchases in one place, track their
shipments, assist with errands and much more. While we began with payments
innovation, in 2019, we started to meaningfully scale our advertising solutions,
which personalize the commerce experience for our consumers by using our vast
proprietary data set, including data they entrust to us. In 2023, we developed
an AI assistant powered by OpenAI, which meaningfully streamlines the commerce
experience, and in 2024, introduced Klarna balance, which makes commerce even
more effortless by allowing consumers to Pay in Full or Pay Later without
connecting to a bank account or card. In 2025, we continued to expand and
introduce more digital finance products to help our consumers save time and
money and effortlessly put them in control of their finances. For example, we
enhanced the Klarna card with real-time transfer and deposit features to create
smarter wallet features, and we have begun its roll-out in the United States.
This upgrade builds on the success of Klarna balance and our savings accounts,
underscoring our growing role in everyday financial management. At the same
time, we continued reshaping access to credit through the expansion of our Fair
Financing offering—a transparent, non-revolving alternative to traditional
credit—now available at a broader merchant network, including major partners
like Walmart. These innovations are all built on our AI-enabled, cloud-native
and global technology platform to which merchants can connect via a single API.
Every product we bring to market can be launched globally, allowing merchants to
reach millions of consumers worldwide almost instantly once connected to our
network.
We began operations in Sweden in 2005, and rapidly expanded through the rest of
the Nordics. By 2010, we operated in the Nordics, Germany and the Netherlands.
By 2016, we were established in nine markets, including Austria (2012),
Switzerland (2014) and the U.K. (2014). Since inception, we have strived to
maintain a deliberate balance of growth and profitability. We remained
profitable for the first 14 years as we scaled our operations in Europe. In
2019, we strategically decided to expand our successful operating model into
additional geographies, with a particular focus on the United States, and in the
following three years expanded into 12 additional markets. While our expansion
in the United States has contributed to an increase in our GMV, it has also led
to net losses in recent periods. In 2023, our operating loss started to decline
and we began generating positive transaction margin dollars in the United
States, while continuing to grow our GMV and the number of active Klarna
consumers and merchants worldwide.
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We are a public company with limited liability incorporated pursuant to the laws
of England and Wales on November 7, 2022 as Klarna UK II PLC and renamed as
Klarna Group plc on December 13, 2023. We are registered with the Registrar of
Companies in England and Wales under number 14467769. Our registered office is
located at 10 York Road, London SE1 7ND, United Kingdom, and the telephone
number at that office is +44 8081 893 333.
Our banking operations in the EEA are conducted through Klarna Bank AB. Klarna
Bank AB was incorporated as a public limited company with the legal name
Kreditor Finans AB under Swedish law on September 5, 2007, with the company
number 556737-0431. After its incorporation, Kreditor Finans AB changed its
legal name to Klarna Finans AB and, following the receipt of a license to carry
out banking activities under the supervision of the SFSA, subsequently changed
its legal name to Klarna Bank AB on June 19, 2017. Klarna Bank AB is a
subsidiary of Klarna Holding AB. As a result of our corporate reorganization in
May 2024, Klarna Holding AB and Klarna Bank AB became indirect subsidiaries of
Klarna Group plc.
Our main U.S. subsidiary is Klarna Inc., a Delaware corporation. Its principal
office is located at 800 N. High St., Ste. 400, Columbus, Ohio 43215, and the
telephone number at that office is +1 (844) 552 7621. Our website address is
www.klarna.com. Our agent for service of process in the United States is
Klarna Inc.
