Klarna bets on new growth as US strengthens deal value

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A smartphone displays a Klarna logo in this illustration taken on January 6, 2020. REUTERS / Dado Ruvic / Illustration

STOCKHOLM, Aug. 25 (Reuters) – Swedish payments firm Klarna said on Wednesday it would continue to enter new markets as it reported an increase in transactions using its platform in the second quarter.

The “buy now, pay later” company, which is expected to debut on the stock exchange in the coming months, said the number of users in the United States had increased from 3 million to 20 million.

Klarna, which is currently active in 17 countries, said it has seen growth in all of its key markets and will continue to expand.

“With a proven concept of market expansion, Klarna will continue to grow by entering new markets and continuing to diversify its revenue streams,” he said in a statement.

Along with rivals such as Affirm and Afterpay (APT.AX), Klarna has seen an increase in demand as the coronavirus pandemic has led to a shift in online consumer spending.

The company has not given details on its highly anticipated stock market listing, although many bankers predict it will be listed in New York City in early 2022.

Klarna, which allows buyers to buy online through its merchant partners and pay their dues in installments, raised $ 639 million in June from a group of investors, bringing its valuation to around $ 46 billion. . Read more

The company’s gross merchandise volume – the value of transactions made using its payment platform – reached more than $ 20 billion in the three months ending June 30, up from $ 12 billion it a year ago.

Its operating loss widened to 1.76 billion crowns (202.6 million dollars) in the period January-June, against 690 million crowns.

Klarna is one of the largest players in the global payments industry, with over 90 million active users worldwide. It processes 2 million transactions per day. Its investors include SoftBank (9984.T), Sequoia Capital, NorthZone, Silver Lake, rapper Snoop Dogg, BlackRock (BLK.N) and Singapore sovereign wealth fund GIC.

($ 1 = 8.6878 Swedish kronor)

Reporting by Helena Soderpalm; Editing by Niklas Pollard and Mike Harrison

Our Standards: Thomson Reuters Trust Principles.


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