Klarna, the Swedish fintech company known for its “buy now, pay later” offering, has seen a significant boost in its transactions and net operating income in 2020. This growth can be largely attributed to its expansion into the United States and other markets. With the COVID-19 pandemic accelerating the shift towards online shopping, more consumers are opting for flexible payment options, which has benefited companies like Klarna.

One key metric that demonstrates Klarna’s success is its gross merchandise volume (GMV), which represents the value of transactions processed through its platform. In 2020, Klarna witnessed a remarkable 46% increase in GMV, reaching an impressive $56 billion for the year. Furthermore, the company’s operating income rose to $1.09 billion, compared to $753 million in the previous year. However, it is worth noting that Klarna’s net loss widened to 1.38 billion Swedish crowns ($166.93 million), up from 902 billion crowns in the previous year.

Klarna’s success can also be attributed to its strong partnerships with over 250,000 retailers, including popular brands such as Macy’s, Ralph Lauren, and Sephora. The company has managed to reduce credit losses as a percentage of GMV across all major markets, indicating that fewer customers are defaulting on their payments. In terms of growth, Klarna has rapidly expanded its user base, acquiring 1 million new consumers per month in the fourth quarter of 2020 in the United States alone. Currently, Klarna boasts 15 million users in the United States and 87 million active users globally.

Although Germany is currently Klarna’s largest market in terms of volume and revenue, the United States is quickly closing the gap and may surpass Germany by the end of the year. To continue its expansion, Klarna has already entered four new markets in the past year and has plans to enter five more by summer. Additionally, the company is considering going public in the near future. However, Klarna faces competition from other “buy now, pay later” players like Affirm and QuadPay.

Overall, Klarna’s impressive performance in 2020 can be attributed to the growing demand for flexible payment options in the online shopping landscape. With the ongoing trend of consumers shifting towards online shopping, Klarna is well-positioned to capitalize on this market and further expand its global presence.

Useful Links:
1. Klarna Official Website
2. Klarna’s Transaction Growth during COVID-19