Klarna Bank

Klarna Bank AB (publ) is a Swedish-licensed bank and payments company founded in 2005 and supervised by Finansinspektionen, best known for buy now, pay later (BNPL) and e-commerce checkout services. It offers “Pay in 30 days” and “Pay in 3/4” short-term installment options that are typically interest-free when paid on time, longer-term financing with APRs, a virtual one-time card, a Klarna-branded card in select markets, and a shopping app covering checkout, delivery tracking, returns handling, and budgeting tools. In Sweden and certain other markets it provides savings products; deposits with Klarna in Sweden are covered by the national deposit guarantee administered by the Swedish National Debt Office up to the applicable limit per depositor. Pricing and product availability vary by country. For consumers, late fees, interest charges, collections activity, and credit bureau reporting can apply depending on jurisdiction and product; longer-term financing accrues interest. Merchants pay transaction and service fees for Klarna’s checkout, risk management, and marketing tools. Credit decisions are made at the transaction level using internal risk models and credit data, often via soft checks. Klarna operates across Europe, the UK, the US, and other markets, funding receivables through a mix of securitizations and credit facilities; it underwent a valuation reset in 2022 and has since reported improved financial performance. Notable compliance matters include a 2021 app incident that briefly exposed other users’ data and a 2022 sanction by the Swedish privacy authority over transparency in privacy notices, after which changes were made. BNPL regulation remains in flux in several markets, including the UK.