Klarna

The company operates a two‑sided payments and credit platform connecting merchants and consumers. On the merchant side, it integrates as a checkout and payments provider, offering a hosted checkout solution and API‑based payments stack that presents multiple localised payment options (including BNPL and instalment plans). This is sold on a per‑transaction and contractual basis to merchants seeking higher conversion and average order values. On the consumer side, it provides short‑term deferred payment options, instalments, and longer‑term financing, accessed through merchant checkouts, a mobile app, and a physical/virtual payment card.

Value is created for merchants by increasing checkout conversion, enabling flexible payment methods without them directly managing credit risk, and simplifying integration with local payment preferences. For consumers, value comes from flexible payment timing, consolidated management of purchases, and access to credit options at point of sale and via card rails. The firm monetises this intermediation of payments and credit while taking on or managing credit and fraud risk, supported by underwriting, collections, and partnerships with card networks and banks.

Klarna Group plc (via Klarna Bank AB and Klarna Holding AB) is a Sweden‑based fintech company focused on consumer point‑of‑sale credit and payments infrastructure for e‑commerce. It offers short‑term “buy now, pay later” (BNPL) products (such as pay in 30 days and pay in 3 instalments), longer‑term financing options for higher‑ticket items, a payment card, and a consumer shopping app that aggregates these services. For merchants, it provides hosted checkout and payments integrations that expose these consumer payment options at online and in‑store checkouts.

The company generates revenue primarily from merchant service fees on transactions and consumer finance income on longer‑term credit, supplemented by card interchange, affiliate/marketing revenues within its shopping app, and various other fees in some markets. Its direct paying customers are merchants and payment partners integrating its checkout and payment products, while end‑consumers use its app, BNPL products and card to fund purchases at participating merchants and anywhere the card network is accepted.