Klarna is one of the leading fintech companies offering buy now, pay later services, which let consumers pay (BNPL) for things in a series of instalments instead of all upfront.
Launched in Sweden in 2005, Klarna had intentions of being the Swedish PayPal, by making online payments simpler for the consumer and merchant. It was somewhat successful in this, but it wasn’t until it launched its BNPL feature in 2016 that Klarna gained international recognition and usage.
BNPL is another form of credit, but instead of charging interest, Klarna and several other BNPL providers offer instalments on zero-interest. This makes it a more friendly option, although some have warned that because of the unregulated nature of the loans and the flowery advertising campaigns, it is easier to lull consumers into another form of debt.
Klarna and other BNPL providers argue that because of the zero-interest, their loans are more affordable and less callous to those who cannot meet repayments.
The majority of Klarna’s loans are agreed upon in the same way one would pay for something with debit or credit card. From there, customers either sign up to a direct debit with Klarna or are notified a few days prior to pay the balance off.
In 2022, Klarna made over $1.5 billion revenue through this service. Merchants are charged a $0.30 fixed and 3.29% variable fee on all transactions.
Klarna was expected to be the next big fintech IPO, but the change in Wall Street’s perception of fintech companies in 2022 forced it to delay an IPO indefinitely. It was valued at $45.6 billion in June 2021, making it the fourth most valuable startup in the world and the most valuable in Europe, but that was reduced by 85% in 2022 to $6.7 billion.
We have collected data and statistics on Klarna. Read on below to find out more. Want to dive deeper into the buy now, pay later market? Check out our finance app report.
Klarna Key Statistics
- Klarna made $2.2 billion revenue in 2023, a 23.6% year-on-year increase
- It generated $96 billion in gross merchandize volume in 2023
- 85 million people used Klarna in 2023, 37 million consumers are in the United States
- Over 400,000 merchants accept Klarna
Want to learn more about the finance app industry? In our Finance App report, we cover financials, forecasts, usage, downloads, demographics and benchmarking data.
Finance App Report 2024
Klarna Overview
| Title | Title 2 |
|---|---|
| Launch date | June 2005 |
| HQ | Stockholm, Sweden |
| People | Sebastian Siemiatkowski (co-founder, CEO), Knut Frängsmyr (deputy CEO), David Fock (CPO) |
| Business type | Private |
| Industry | Finance |
Klarna Revenue
Klarna revenue increased by 23% in 2023 to $2.2 billion. It generates most its income from interchange and merchant fees.
Klarna revenue 2016 to 2023 ($mm)
| Year | Revenue ($mm) |
|---|---|
| 2016 | 384 |
| 2017 | 451 |
| 2018 | 588 |
| 2019 | 772 |
| 2020 | 1071 |
| 2021 | 1424 |
| 2022 | 1853 |
| 2023 | 2291 |
Sources: Finance App Report, Company data
Klarna Profit
Klarna has been a loss making business since 2019, but it reduced its annual loss by $750 million in 2023.
Klarna net income 2017 to 2023 ($mm)
| Year | Net income / loss ($mm) |
|---|---|
| 2017 | 37.4 |
| 2018 | 10.8 |
| 2019 | -92.8 |
| 2020 | -149 |
| 2021 | -680 |
| 2022 | -999 |
| 2023 | -249 |
Sources: Finance App Report, Company data
Klarna GMV
Klarna has increased its gross merchandise volume every year. It had 15.6% growth in 2023, generating $96 billion in GMV.
Klarna gross merchandise volume 2017 to 2023 ($bn)
| Year | Gross merchandize volume ($bn) |
|---|---|
| 2017 | 21 |
| 2018 | 29 |
| 2019 | 35 |
| 2020 | 53 |
| 2021 | 80 |
| 2022 | 83 |
| 2023 | 96 |
Source: Company data
Klarna Users
85 million consumers used Klarna in 2023, with approximately 50 million using the Klarna mobile app.
Klarna users 2019 to 2023 (mm)
| Year | Users (mm) |
|---|---|
| 2019 | 45 |
| 2020 | 86 |
| 2021 | 149 |
| 2022 | 115 |
| 2023 | 85 |
Source: Company data
Klarna US Users
There are over 37 million Klarna users in the US alone, making it Klarna’s largest market.
Klarna users in the United States 2019 to 2023 (mm)
| Year | Users (mm) |
|---|---|
| 2019 | 7 |
| 2020 | 11 |
| 2021 | 20 |
| 2022 | 25 |
| 2023 | 37 |
Source: Company data
Klarna Merchants
Over a quarter of a million merchants accept Klarna, including H&M, Nike and Wayfair.
Klarna number of merchants on platform 2017 to 2022
| Year | Merchants |
|---|---|
| 2017 | 105,000 |
| 2018 | 130,000 |
| 2019 | 170,000 |
| 2020 | 210,000 |
| 2021 | 250,000 |
| 2022 | 400,000 |
Source: Company data
Klarna Valuation
Klarna’s valuation has ballooned over the past two years, as BNPL has become an alternative to credit for a lot of shoppers.
Klarna valuation 2019 to 2022 ($bn)
| Date | Valuation ($bn) |
|---|---|
| August 2019 | 5.5 |
| September 2020 | 10.6 |
| March 2021 | 31 |
| July 2021 | 45.6 |
| July 2022 | 6.7 |
Sources: Bloomberg, CNBC, FT, TechCrunch
Klarna vs Competitors: Market Share
This chart looks at the percentage of websites that offer Klarna and other BNPL services. Klarna has the highest adoption rate, at 38%, followed by Square’s AfterPay.
Want to learn more? Check out our Finance App Report
Klarna FAQ
How does Klarna work?
When purchasing an item through Klarna, there are three ways to pay it off: pay a lump sum anytime in the next 30 days (interest free), pay in four instalments, or finance it over a period of six to 36 months.
How does Klarna make money?
Klarna makes the majority of its income through merchant commissions ($0.30 flat fee and 3.29% variable rate) and interchange fees. It also earns interest on customer accounts that are paying through finance.
How many transactions does Klarna handle everyday?
Klarna handles over two million transactions a day.
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