New updates have been reported about Klarna (PC:KLRNA)
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Klarna, the Swedish fintech company, has announced a significant partnership with Walmart to exclusively provide buy now, pay later (BNPL) loans, a role previously held by its competitor Affirm. This strategic move comes as Klarna prepares for its IPO, marking a substantial expansion of its U.S. operations. The loans will be offered through OnePay, a fintech startup in which Klarna holds a majority stake, with the transition expected to occur later this year. This development is poised to enhance Klarna’s footprint in the U.S. market, which is already one of its largest alongside Germany.
The partnership with Walmart, the world’s largest retailer by revenue, is expected to significantly boost Klarna’s presence and performance in the U.S., a market that has been increasingly pivotal for the company. Klarna’s recent financial turnaround, reporting a net profit of $21 million in 2024 after a substantial loss the previous year, underscores its resilience and strategic agility. This move also intensifies the rivalry with Affirm, whose stock dropped by 8% following the announcement. While Affirm has focused on generating revenue from individual transactions, Klarna emphasizes transaction-based revenue with a smaller portion from marketing. This deal with Walmart not only strengthens Klarna’s market position but also aligns with its strategy to expand its global reach, particularly in the competitive U.S. market.