Klarna Adds Over 100,000 Retail Partners Since August 2003

Klarna, the AI-powered global payments network and shopping assistant, on Tuesday announced that it has reached a significant growth milestone by adding over 100,000 retail partners added since August 2023, expanding its total network to over 600,000 merchants.

More and more merchants – large and small – are choosing Klarna because the network creates an unparalleled, smooth experience for their customers, and drives sustainable growth.

Major brands that have joined the Klarna retail network in the last 12 months include, Uber, Stitchfix, Away, Stubhub, New Balance, Electronic Arts, SKIMS, and many more. One in four of the top 100 merchants across the U.S. have chosen Klarna, including Adidas and Airbnb.

David Sykes, Chief Commercial Officer of Klarna, said that the goal is to make Klarna ubiquitous, with Klarna in every checkout so that they can provide consumers everywhere with a more flexible and fair payment option.

This growth reflects the trust both merchants and consumers continue to place in us to deliver seamless, flexible payment options, he said.

“I can only call this a win-win: the more merchants we have on board, the more accessible our services are to customers, and the more customers using our services, the more beneficial it is for merchants,” he added.

In UK

According to CITY A.M. report, the Swedish fintech has 41,496 merchant partners in the UK as of October, up from around 30,000 a year ago. The biggest partners Klarna has struck UK deals with over the last year include Argos, Airbnb, and Boots’ website and app.

Klarna makes the bulk of its revenue from merchant fees and is looking to grow its UK network into new sectors. Last month, it revealed a partnership with small business platform Xero that could enable consumers to use BNPL for plumbing and car repairs.

It is also targeting more physical stores through a deal with fellow fintech giant Adyen that will incorporate Klarna as a payment option in the Dutch firm’s more than 450,000 payment terminals.

BNPL providers like Klarna, Zilch and Clearpay have exploded in popularity in recent years as their mostly interest-free instalment loans draw in millions of Britons seeking alternatives to credit cards, the report added.

Klarna’s Growth by Numbers

Traffic to merchant partner websites has increased 36% y-o-y from the Klarna app, and in-app affiliate revenue is up by 33% year over year. In the US, the number of merchants increased by 92% year over year.

By industry, Klarna’s US merchant network has seen impressive year over year growth with 339% in education, 315% in travel services, 191% in food and beverage, 167% in automotive parts and accessories.

Globally, 90,000 new users per day try Klarna on average proving how attractive the company is for merchants to access this smart, healthy consumer base. As consumers continue to shift away from credit cards, driven by low trust in banks, Klarna’s goal is to create the commerce network of the next generation.

Operating in over 26 markets (and counting) across a huge number of verticals, Klarna is the everyday spending partner, everywhere with everything, the company said.