Klarna Bank AB

Klarna Bank AB is a Swedish licensed bank founded in 2005 and headquartered in Stockholm that focuses on retail payments and consumer credit delivered through its app and merchant integrations. It offers pay-now, deferred payment (e.g., pay in 30 days), short-term instalments, and longer-term financing in certain markets, alongside interest-bearing savings accounts and payment cards available in select countries. Revenue is primarily derived from merchant fees, card interchange, and consumer charges permitted by local law (such as late fees); pricing, credit limits, and eligibility are jurisdiction-specific and subject to change. Credit assessment includes identity and affordability checks and, depending on product and market, may involve soft or hard credit inquiries; reporting to credit bureaus and the treatment of missed payments vary by country and can affect a customer’s credit profile. Klarna is supervised by the Swedish Financial Supervisory Authority as a credit institution, and deposit products are covered by Sweden’s national deposit guarantee up to the statutory limit per depositor (approximately the EU-equivalent of EUR 100,000), including for EEA branches. Services are distributed through ecommerce checkout integrations and a consumer app across multiple regions, with availability, card issuance, fees, APRs for financed purchases, dispute and return handling, and rewards or promotions differing by market and merchant. The company is privately held and operates in a regulatory environment that has increased oversight of “buy now, pay later” products, prompting ongoing adjustments to disclosures, underwriting, and collections practices. Prospective users should review applicable terms, fee schedules, interest and currency conversion rates, repayment schedules, data usage and marketing permissions, and local consumer protections before using Klarna’s products.