Klarna Group plc (KLAR)

Klarna Group plc is a global digital bank and flexible payments provider that describes itself as building an AI-powered commerce network. Founded in Sweden in 2005 to improve trust and efficiency in online commerce, it began by letting consumers pay after delivery and has grown into a network connecting consumers and merchants. As of December 31, 2025, it served approximately 118 million active consumers and about 966 thousand merchants in 26 countries, and facilitated $128 billion of gross merchandise volume (GMV) in 2025. It earns revenue primarily from merchant fees, along with consumer and advertising revenue. In 2025, total revenue was $3,509 million and net loss was $273 million.

Its products include payment options (Pay in Full, Pay Later in installments, and Fair Financing over longer fixed terms with transparent pricing), which are available at merchant online and in-store checkouts, in the Klarna app, through Apple Pay and Google Pay, and with the debit-first Klarna Card. The Klarna app lets consumers track purchases and shipments and includes an AI assistant built with OpenAI. Klarna balance, savings accounts and subscription-based premium features round out the consumer offering. Klarna also sells performance-based advertising and merchant marketing solutions, which grew from about $13 million in revenue in 2020 to $190 million in 2025. In 2025, 97% of transactions were interest-free, and the Klarna Card had more than 4.2 million active users.

Customers are consumers across a wide range of incomes and merchants of all sizes. Merchants include Walmart, Airbnb, H&M, Nike, Uber and eBay. Major markets include the United States, the U.K., the Nordics, Germany, Austria, Belgium, Spain, France, Italy, the Netherlands and Switzerland. Sweden is the most mature market, where an estimated 85% of adults were active Klarna consumers. No single merchant exceeded 10% of GMV in any major market. Klarna offers savings accounts directly to residents of 14 European countries and holds $13 billion of consumer funds.

Klarna operates as a licensed bank in the European Economic Area, authorized by the Swedish Financial Supervisory Authority since 2017. This allows it to fund lending partly through consumer deposits, supplemented by a partnership with Raisin's deposit platform and other funding and risk-transfer tools. It underwrites every transaction in real time using proprietary data and machine learning. Weighted average life was about 39 days, and provision for credit losses was 0.63% of GMV. Its cloud-native platform connects partners through a single API. Partners include payment service providers such as Worldpay, Stripe, Nexi, J.P. Morgan Payments and Adyen, plus banks, card networks and logistics providers. It competes with card networks and other payment and banking providers. The parent company was redomiciled from Sweden to the United Kingdom in May 2024, and its shares are listed on the New York Stock Exchange.